Philanthropists are looking into start-ups
Bali, Indonesia CNN
The start-up culture in Indonesia is emerging. The industry is projected to be backed by funding from philanthropic organisations of from generous Indonesians themselves.
The Chairman of the Executive Board of the Indonesian Philanthropy Association, Timotheus Lesmana, said philanthropy can act as venture capital for start-ups in need of funds.
Based on the amount of funds that is projected to be invested, philanthropy should be wise in managing it however: In 2014, the association recorded 12.5 trillion funds coming from philanthropy.
"We want to change the concept of giving into investments that can make an impact. Many Indonesian philanthropists choose to give aid to other countries because they don't understand the concept of donating to a start-up well enough," said Timotheus to CNNIndonesia.com during the Start-up Pitch Day in Sanur, Bali.
It is the duty of all philanthropic actors to encourage the generous to give and share. Just to illustrate, the Indonesian diaspora community in the United States managed to raise US $ 3 million in 2014.
With estimated per person donations amounting to IDR 320.000 per year, Timotheus was optimistic that the numbers could exceed the value of the amount collected from the Indonesian diaspora in the US.
Philanthropy is often synonymous with generous people who are in the elite group and like to give and want to change people for the better.
So far, the money collected has usually been used for the provision of social assistance for people in need.
"Donations often create dependence, we want the funds collected to be beneficial. To avoid misunderstanding, later there will be an option for donors who are willing to give the money to fund a start-up," he said.
Indonesia Philanthropy Association noted that there are three philanthropic focus groups in Indonesia, there are the family foundations, celebrity/conglomerate philanthropists, and corporate and community-based foundations.
In early October, Indonesia Philanthropy Association plans to start raising funds to support start-ups, particularly those who focus in art, culture, and performances.
"We saw very few people who were willing to give initial funding for graphic design and film production. Philanthropy is expected to be an alternative financing for start-ups" he concluded.