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.

Jakarta Post

Crowdfunding: Kick-starting startups

  • Hana Monica Hutabarat

    -

PREMIUM
Jakarta   /   Tue, January 29, 2019   /  01:08 pm
Crowdfunding: Kick-starting startups Crowdfunding (Shutterstock/File)

In the past few years, startups have been growing exponentially in Indonesia as one of the ripple effects of technological progress and an increasing number of creative people. However, the early-stage companies struggle to get capital, because they hardly succeed in attracting venture capitalists or angel investors — as the typical funding sources of early-stage companies — because of the level of risk of the business.

The issuance of Financial Services Authority (OJK) Regulation No. 37/2018 on equity crowdfunding, effective as of Dec. 31, 2018, gives startup owners an alternative source of capital. For comparison, the United States enacted similar regulation back in 2012 under the Jumpstart Our Business Start-ups Act, later updated in 2015. Essentially, crowdfunding is the practice of funding a private company by raising small amounts of money from a large po...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.