In a recent post published in Mekar, Thierry Sanders highlighted the top 10 reasons to invest in Indonesia.
Here’s a snapshot of his Reason #2 – USD 23-billion in Impact Investing opportunities
First of all, let’s define what ‘Impact Investing’ actually is.
According to Investopedia, Impact Investing aims to generate specific beneficial social or environmental effects in addition to financial gains.
Impact Investments may take the form of numerous asset classes and may result in many specific outcomes.
The point of Impact Investing is to use money and investment capital for positive social results.
As far as Indonesia is concerned, here’s what Thierry Sanders highlights …
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The largest opportunities lay in renewable energy, agriculture and fisheries, water, private education and financial services according to the Mekar Report.
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The report covers 17-sectors of industry with high impact and commercial potential, it looks at the risks, trends and opportunities within these sectors.
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The Global Impact Investing Network (GIIN) reports that over the last decade some USD 3.7-billion in Impact Investments flowed into Indonesia.
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A small portion of this USD 148-million is from private Impact Investors, the rest from development finance institutions (DFIs).
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Agribusiness and Financial services received the majority of the capital, where DFI’s tended to use debt and private investors equity finance.
