research demographics

Quantitative Demographics

Gender Distribution
MSMEs
Startup
Total Owners Interviewed:
300
Total Owners Interviewed:
24
Highest Education Attainment
MSMEs
Startup
Total Owners Interviewed:
297
Total Owners Interviewed:
24
Owner's Age
MSMEs
Startup
Total Owners Interviewed:
294
Total Owners Interviewed:
23
Marital status
MSMEs
Startup
Total Owners Interviewed:
299
Total Owners Interviewed:
23
Number of Dependent(s)
MSMEs
Startup
Total Owners Interviewed:
202
Total Owners Interviewed:
22

Qualitative Demographics

Education
Total Owners Interviewed:
12
Gender
Total Owners Interviewed:
12
SEC
Total Owners Interviewed:
12
Industry
Total Owners Interviewed:
12
Size
Total Owners Interviewed:
12
Age
Total Owners Interviewed:
12

Codesign Demographics

Name
No
organisation
position
category
Priority Area 1: How might we support MSMEs to develop strong and up-to-date market and industry knowledge?
1
Olansons Girsang
Office of Industry, Trade, Cooperatives, Small and Medium Business
Head of Industry Development Division
Government Institution
2
Adhitya Pratama Yudhasaput
Office of Industry, Trade, Cooperatives, Small and Medium Business
Head of Small and Medium Enterprise Infrastructure Division
Government Institution
3
Suhono Harso Supangkat
Think20 (T20)
Head of Small and Medium Enterprise Infrastructure Division
Think Tank
4
Sigit Purwanto
Institute for Innovation and Entrepreneurship Development (LPIK-ITB)
Head of Monitoring and Evaluation Division
Think Tank
5
Aufa Doarest
World Bank
Private Sector Specialist
International Organization
6
Timothy Astandu
Populix
CEO
Industry
7
Alam Medina
Governor’s Team for the Acceleration of Development (TGUPP)
Policy Analyst
Government Institution
8
Manael Sudarman
Jakarta Experience Board
Business Director
Government Institution
9
Zidny Ilman
Gojek
Public Policy & Government Relations Jr. Manager
Industry
Priority Area 2: How might we make digitally-empowered growth affordable for MSMEs?
10
Presthysa Nagitha Lestari
Gojek
Vice President, Public Policy and Government Relations
Industry
11
Tauhid Ahmad
INDEF
Executive Director
Think Tank
12
Puji
Bank DKI
SME Division
Financial Institution
13
Teddy Trilaksono
Universitas Prasetya Mulya
Faculty Member
Educational Institution
14
Frida Elizabeth
Office of Industry, Trade, Cooperatives, Small and Medium Business
Head of Creative and Digital Industry Division
Government Institution
15
Emana Fasianti
Office of Industry, Trade, Cooperatives, Small and Medium Business
Head of Creative and Digital Industry Division
Government Institution
Priority Area 3: How might we build the tech talent reservoir to meet the evolving industry demand?
16
Andy Sulasikin
Jakarta Smart City
Government Institution
17
Tendy Gunawan
International Labor Organization
National Program Officer
International Organization
18
Erika Dianasari Go
Alpha JWC
Partner
Financial Institution
19
William Hendradjaja
Skilvul / Impact Byte
Co-founder & Chief of Business
Educational Institution
20
Nursida Yaru
Tokopedia
Senior Public Policy and Government Relations Associate
Industry
Gender Distribution
Total Owners Interviewed:
20
Category Distribution
Total Owners Interviewed:
20
smartchange 2022
Digital Empowerment

Create a crowdfunding regulation for MSMEs

Policies Involved

Innovation
Government Regulation on Crowdfunding for MSMEs

Challenge

There is no lack of financing alternatives for MSMEs in Indonesia, but low financial literacy and cumbersome loan procedures poses immediate challenges for MSMEs to finance their innovative product ideas. While the internet has opened up opportunities in the realm of MSME financing, there is currently a gap in project-based crowdfunding that could offer a digital platform for entrepreneurs to get their new product off the ground by raising smaller amounts of funding from multiple supporters.

Current Policy

Project-based crowdfunding, which can simplify MSME pitching by hosting the campaign details and progress in one place, is currently unregulated in Indonesia. Meanwhile, donation-based crowdfunding platforms that donate to a charity or a cause are typically registered as a non-profit organization, and are subject to the Minister of Social Affairs Regulation No. 246 of 2021 (general category) and No. 148 of 2021 (natural crises category) on the Collection of Money and Goods. Further, Government Regulation Number 71 of 2019 on the Implementation of Electronic Systems and Transactions obliges electronic system operators, from investment to donation-based crowdfunding platforms, to register with the government.

Action

A crowdfunding regulation that supports the likes of Kickstarter and IndieGoGo can democratize the access to financing for MSMEs that seek to experiment with product innovations. Since project-based crowdfunding activities are housed on a digital platform, it requires the government institutions responsible for MSME development as well as electronic system providers to participate in the policy creation. Given that the platform matches MSMEs with public supporters, the types and levels of rewards that the supporters will receive must also be defined. Furthermore, validating the existence and operations of the MSMEs will help to ensure supporters that the business they are funding is legitimate. Finally, actively promoting project-based crowdfunding as an alternative source of funding for MSMEs can benefit businesses testing the demand for their products online while at the same time bringing their innovation ideas to reality.

action points
parties involved
Incentivize crowdfunding platform operator
Ministry of Cooperatives and MSME
Provincial Government of DKI Jakarta
Office of Industry, Trade, Cooperatives, Small and Medium Business DKI Jakarta
License crowdfunding platform operator
Ministry of Communications and Informatics
Financial Services Authority
Define the 'transactional' relationship between MSMEs and donors
Ministry of Cooperatives and MSME
Office of Industry, Trade, Cooperatives, Small and Medium Business DKI Jakarta
Individual and organizational donors
MSMEs
Validate the existence and operations of MSMEs to prevent fraud 
Ministry of Cooperatives and MSME
Office of Industry, Trade, Cooperatives, Small and Medium Business DKI Jakarta
Crowdfunding platform operators
Promote crowdfunding
Ministry of Cooperatives and MSMEs and other relevant government institutions
Provincial Government of DKI Jakarta
Office of Industry, Trade, Cooperatives, Small and Medium Business DKI Jakarta
Business associations and other supporting organizations

Indicator of Success

Number of active crowdfunding platform users
Total funds raised by crowdfunding platform
Success rate of crowdfunding campaigns (project fully funded)
Speed of crowdfunding campaign completion (project fully funded)
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Incentivize MSMEs to stay digital
next
Improve the job-readiness of Digital Talent Scholarship graduates

    For many entrepreneurs, the decision to turn into innovations depends on the ease to adopt technology, trained workforces, and multiple sources of finance. Yet, navigating the complex regulation is a major challenge for most lay business people. To expedite the economic recovery post-pandemic recession, the stakeholders in the ecosystem are urged to formulate the right policy to simplify such challenges.

    — Kariem El-Ali, Senior Policy Advisor
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