World Giving Index Rank
2017- 79%giving money
- 55%volunteering time
- 47%helping a stranger
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The Indonesian social economy is transitioning from being one largely based on a tradition of religious giving to one growing in its engagement with impact and sustainable investing and green finance
With a population of 264 million, Indonesia is the 4th most populous country in the world, home to the biggest Muslim population, and the 8th largest economy in purchasing power parity terms. Indonesia abounds with natural resources, such as coal, tin, rubber and coffee. Despite rising global uncertainty, Indonesia’s economic growth rate has remained steady at 5% since 2014, driven by higher domestic demand, especially investment. This, paired with an emerging middle class of 74 million people, makes Indonesia a key economic player in Southeast Asia.
As the largest archipelagic country worldwide comprising 13,466 islands, 922 of which are permanently inhabited, Indonesia faces a unique challenge: to manage its people of 300 ethnic groups and to distribute its resources equitably among its regions. Key concerns include inequality, poverty, corruption, infrastructure and a complex regulatory environment.
Indonesia’s social economy has a distinguished tradition of charitable giving, in large part due to its majority Muslim population which abides by the religious obligation of zakat or alms-giving. Recent developments reveal growing interest and support for sustainable finance from investors and financial institutions. Impact investing is especially strong in Indonesia, with intermediaries playing an important role of connecting social enterprises with international impact investors. In 2018, Indonesia also issued the world’s first sovereign green sukuk bond, an innovative financial instrument based on Islamic legal principles.
Source: : ADB, Charities Aid Foundation, Credit Suisse, World Economic Forum, World Bank. Figures are accurate as of March 2019
Source: sdgindex.org (2018)
Note: The "traffic light" colour scheme (green,yellow, orange, red) illustrates how far a market is from achieving a particular goal
Impact Area | SDG Goals | Gap | Government Initiatives |
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Agriculture |
SDG Goals |
Gap
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Government Initiatives
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Climate action |
SDG Goals |
Gap
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Government Initiatives
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Education and employability |
SDG Goals |
Gap
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Government Initiatives
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Energy access |
SDG Goals |
Gap
|
Government Initiatives
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Health care, water and sanitation |
SDG Goals |
Gap
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Government Initiatives
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Poverty alleviation |
SDG Goals |
Gap
|
Government Initiatives
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SME development |
SDG Goals |
Gap
|
Government Initiatives
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Kopernik developed overall framework for women’s empowerment and technology adoption to understand their impact.
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Social Economy
The Indonesian social economy is transitioning from being one largely based on a tradition of religious giving to one growing in its engagement with impact and sustainable investing and green finance
Factor
Presence, size, and maturity of SEsFactor
SEs' sectoral presenceFactor
Philanthropic contributionsFactor
Managed fundsFactor
Corporate sectorFactor
Policy environmentFactor
Incubators, accelerators, and capacity-buildersFactor
Networks and platformsFactor
Knowledge and researchFactor
Partnerships