Expanding Impact Investment to boost economy

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Alexander Irwan
Priv. Doc.

Jakarta, IO – In a novel trend today, more and more investors are directing their funds to what is known as “Impact Investing”, a form of sustainable investment, seeking measurable and beneficial social and environmental impact alongside a financial return. This could take the form of climate change mitigation or poverty and inequality alleviation. Impact Investing is projected to dominate investment schemes in the future. Despite the challenges it faces, including lack of policies and funding, solutions and innovations in impact investing continue to develop in Indonesia. 

The pandemic accumulated developmental challenges in developing countries. Various parties now collaborate to help upgrade numerous sectors of life. Significant funding is fundamental to support countries in their quest to achieve 2030 Sustainable Development Goals, particularly during the current endemic. Investors with social investment strategies are expected to generate sustainable impacts. Based on a report in Katadata, the SAFE Forum declared that social investment potential would reach more than IDR 140 trillion in Indonesia. 

Seizing such a huge potential, as a global philanthropic institution, the Ford Foundation is committed to creating an impactful investment ecosystem, by being involved in the 2022 AVPN Conference, a series of global discussions and workshops held by investors’ social networks, to spread public awareness on the significance of impact investing in the future.