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IIX’s Orange Movement™ leads the charge in Indonesia’s impact investment landscape

Aqraa Sagir (The Jakarta Post)
Jakarta
Thu, July 4, 2024 Published on Jul. 3, 2024 Published on 2024-07-03T15:17:07+07:00

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IIX’s Orange Movement™ leads the charge in Indonesia’s impact investment landscape (Courtesy of Impact Investment Exchange (IIX))

I

ndonesia, accounting for over 20 percent of total impact capital deployed in the ASEAN region, with investments totaling US$1.44 billion from 2020 to 2022, has emerged as a leading force in impact investment. Recognizing Indonesia's pivotal role in the Global South, Impact Investment Exchange (IIX), a pioneer in global impact investing based in Singapore since 2009, has intensified its focus on the country.

Spearheaded by its founder and CEO, Prof. Durreen Shahnaz, IIX has positively impacted 60 countries, mobilizing over $454 million and benefiting 160 million lives. Key initiatives include the Women’s Livelihood Bond™ (WLB) Series and the Impact Partners™ platform, which connects high-impact enterprises with impact investors.

At IIX, success hinges on the direct impact on the communities served, verified through the IIX Values™ impact measurement system, which harnesses human-centered methodologies for data collection. Unlike traditional ESG metrics focusing on corporate behavior, IIX Values™ quantifies outcomes such as financial independence, health, education, and nutrition for underserved communities verified and confirmed by women in the last mile. It combines qualitative and quantitative data to demonstrate both the scale and depth of change, emphasizing the value the last-mile verification holds to ensure investments truly make a difference.

In Indonesia alone, IIX has established an Impact Investing Ecosystem that has mobilized over $56 million, supported over 33 enterprises across various sectors and sizes, and impacted over 6 million lives.

Real-life impact: Stories from the ground

Roro, a microbusiness owner selling traditional Indonesian cuisine from her home shop, increased her income by 10 percent with support from IIX. She used funds from IIX’s WLB2 to install a washroom on her business premises, providing clean and safe water facilities, reducing the risk of COVID-19 exposure, and ultimately enhancing her livelihood.

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(Courtesy of Impact Investment Exchange (IIX))
(Courtesy of Impact Investment Exchange (IIX))

Isniwati, residing in one of Indonesia's water-stressed areas exacerbated by climate change, is a beneficiary supported by a WLB Series transaction. The WLB Series transactions are the first few ASEAN-focused gender bonds in the market to qualify as Orange Bonds, which wield cross-cutting benefits on gender equality, climate action, and women’s economic empowerment. In 2022, Isniwati received a water and sanitation loan facilitated by IIX. This loan has been transformative for her, saving her up to three hours daily that were previously spent collecting water. Improving access to water resources has significantly enhanced her family’s health and sanitation outcomes. Isniwati is one of approximately 3,000 Indonesian women who have better adapted to climate change through Orange Bond’s proceeds.

The Orange Movement™ in Indonesia

IIX is expanding its transformative Orange Movement™ into Indonesia. This global initiative empowers women, girls, and gender minorities, aligning with the United Nations' Sustainable Development Goal (SDG) 5 for gender equality, represented by the color orange.

The Orange Movement™ addresses the $1.7 billion funding gap for the 17 UN SDGs. It seeks to build an inclusive future by advancing gender equality, economic growth, peace and security, and climate resilience. By unlocking $10 billion in capital by 2030, the movement aims to empower over 100 million women, girls, and gender minorities worldwide.

The steering committee, featuring IIX alongside the United States International Development Finance Agency (US DFC), the Australian Department of Foreign Affairs and Trade (DFAT), Nuveen, and Water.org, among a few others, plans to achieve the Orange Movement™’s mission through the following key objectives:

  1. Establishing a gender-empowered financing system with transparent standards.
  2. Mobilizing new capital through gender-lens investment products.
  3. Innovating for gender equality and economic empowerment.

IIX's pivotal next step is amplifying the presence of the Orange Movement™ in the Indonesian market. This initiative leverages innovative financing to advance gender equality and climate action, aligning with Indonesia's SDG agenda. This endeavor seeks to diversify funding sources and accelerate progress toward Indonesia's SDGs, supported by collaborative efforts to mobilize diverse stakeholders and attract committed investors.

(Courtesy of Impact Investment Exchange (IIX))
(Courtesy of Impact Investment Exchange (IIX))

Through these strategic efforts, IIX aims to develop Indonesia's impact investment ecosystem further, driving meaningful progress in gender equality and climate resilience.

Join the Orange Movement™: Sign the Orange Pledge

The Orange Movement™ invites you to join by signing the Orange Pledge, supporting the mission to create a gender-empowered financial system that champions equality. With over 76,000 signatories, the Orange Movement™ has mobilized $274 million, positively impacted 2.74 million lives globally, and is poised to achieve even more significant milestones.

Our mission is to empower Indonesian women, girls, and gender minorities through enhanced financial inclusion, capital mobilization, and catalyzing societal transformation. By signing the Orange Pledge, you gain exclusive access to insights on effective gender equality solutions, updates on gender-lens investing through Orange transactions, and opportunities to help shape a future of true gender equality.

Together, let's drive change and build a more inclusive world. Sign the Orange Pledge today and join this transformative journey.

This article is published in collaboration with Impact Investment Exchange (IIX)

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