Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Arsjad Rasjid emphasized that Indonesia is not only following the global trend in impact investing but also becoming the most active investment destination in the region. Speaking at the opening of Impact Investment Day (IID) 2024 in Labuan Bajo, East Nusa Tenggara (NTT), Arsjad noted via video statement that impact investing has gained momentum in Indonesia in recent years as investors become increasingly aware of environmental, social, and governance (ESG) principles. He highlighted that the significant growth in impact investing is driven by the need to address critical global issues such as poverty, inequality, and climate change. According to the Global Impact Investing Network (GIIN), assets managed under impact investing principles worldwide amount to over USD 1.1 trillion. Meanwhile, the Australian Agency for International Development (AusAID) reported that 131 draft laws created in Indonesia from 2020 to 2022 attracted nearly USD 1.5 billion in investment. Arsjad remarked that more investors are adjusting their portfolios to address global issues, leading to a paradigm shift where social and environmental impacts are now considered alongside financial returns. Investors are prioritizing long-term investments that promote a low-carbon future and sustainable development.
However, Arsjad pointed out that the current level of investment is insufficient to address the growing social inequality in Indonesia. He stressed that this challenge is too vast to be tackled solely by individuals, companies, CSR contributions, or NGOs. To overcome these challenges, he advocated for increasing the realization of impact investments through the formalization of social entrepreneurship. Social entrepreneurship, he argued, drives innovative solutions to poverty and inequality, focusing not only on business profits but also on societal benefits. Arsjad highlighted that many social enterprises are assisting and partnering with the government in development efforts. Kadin, as a government partner, actively supports the formation of the Social Entrepreneurship Bill, which aims to create a framework that provides opportunities for these enterprises to attract more impact investments. Impact Investment Day (IID) 2024, a side event of the Indonesia International Sustainability Forum (ISF) 2024 organized by Kadin Indonesia in collaboration with the Yayasan Bambu Lingkungan Lestari (YBLL), featured sessions for selected social enterprises to pitch and match funds with investors, including Temasek Foundation. Participating enterprises included BambooCoop, EcoNusa Foundation, Jaga Semesta, Javara, Krealogi, Spedagi, Tiga Pilar Pertiwi, TORAJAMELO, Blue School, Kalara Borneo, Riles Lestary, Tenun.In, and Timor Moringa.
