TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Impact investing gains traction in Indonesia
Indonesia is seeing a surge in impact investing thanks to growing awareness of ESG issues, with investors deliberately seeking to effect positive change alongside financial returns.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Stock illustration of impact investing, which aims to generate returns and maximize social and environmental impacts (Shutterstock/-)
I
ndonesia is experiencing a surge in impact investing, an investment approach that seeks to effect positive change alongside financial returns, thanks to growing awareness of environmental, social and governance (ESG) issues.
While positive social or environmental outcomes from any investment are commendable, true impact investing requires intention, according to David Soukhasing, managing director of Angel Investment Network Indonesia (ANGIN).
“Impact investing is investment you make to intentionally generate a pressure of environmental effect,” Soukhasing told The Jakarta Post on Friday.
“If your investment somehow creates an impact and you’re happy about it, that’s good investment but not impact investment,” he added.
According to a 2023 Intellecap report on impact investing in Southeast Asia, private impact investors in the region deployed 40 percent more capital in 40 percent more deals between 2020 and 2022 compared to the preceding three years.
Indonesia has emerged as a regional leader in impact investing, attracting nearly 44 percent of deals by volume and capturing 55 percent of private impact capital in 2020-2022.
This translates to private investors pouring US$347.5 million into 100 deals, with development finance institutions contributing an additional $1.07 billion.
