Crowdfunding Practice in Indonesia
Kickstarter, Broklyn-based crowdfunding site which is established in 2009 has proven that collecting funds from public for creative project can actually achievable. But, how about crowdfunding practice in Indonesia nowadays?
Crowdfunding pioneers in Indonesia began their move around 2011, some early mover like BursaIde and Patungan are now inactive, while some still kicking, Wujudkan for example. As time flies, more new player joined the market such as KitaBisa, GandengTangan. Several players even decided to move into fintech sector too like Modalku and KoinWorks.
In general, crowdfunding itself actually can be divided into three subsectors such as Equity Crowdfunding, Donation Crowdfunding, and Debt Crowdfunding.
Debt Crowdfunding has found its way in to penetrate market because government shown some interest in fintech. Meanwhile, different situation shown by the Donation Crowdfunding subsector, that seems barely fit in the market.
Debt Crowdfunding works for a couple of reasons. First, Indonesia government wanted to leverage financial literacy of their people. Second, government wanted to grow more SME businesses and bring them to e-commerce ecosystem. This makes the subsector could gain adoption faster.
Contrast to that, Donation Crowdfunding considered as a social entrepreneurship and it takes a less favorable path. This subsector didn’t attract many players, so does government as a regulator. Another reason is because e-commerce’s hype has shifted people’s consumption behavior. Compared to US market where Kickstarter born, they had past this stage because they started the e-commerce trend in late 90’s. So, when Kickstarter was born, people were starving for innovations. They were willing to give their money in exchange for unique projects. One of the success stories is Oculus Rift which bought by Facebook later on.
In addition, internet penetration which poorly distributed across the nation, and different cultures becomes a challenge for Donation Crowdfunding too. The concept isn’t well-received right now and need a room to grow. Or maybe there isn’t a compelling project that sparked a viral crowdfunding among people. Either way we should encourage people to bring up their project’s plan to the internet to make it happen.