Author: Agung Ariwibowo (division of protocol, information services, and public relations)
Since the Korean drama Start-Up won over hearts throughout the globe in 2020, young people all over the world—including Indonesia—have become interested in the way it portrays digital entrepreneurs. The drama struck a deep chord with viewers by emphasizing micro, small, and medium-sized enterprises (MSMEs) and encouraging them to think about starting their own businesses. This interest aligns with the practical necessity for innovation during the pandemic, particularly for companies that are finding it difficult to adjust.
Start-Up: A Reflection of Reality in Indonesia
Surprisingly, the movie provides a realistic portrayal of current Indonesian endeavors, such as the National Movement of 1000 Digital Start-Ups. Similar to what is shown in the drama, the Ministry of Communication and Information Technology launched this initiative in 2016 and offers possibilities for investor pitching, incubation, and training. But compared to its fictitious equivalent, this cleverly built program is not as well-known.
The Funding Dilemma and the Promise of Crowdfunding
Even with the proliferation of entrepreneurs and ideas, one of the biggest obstacles is still getting money. Lack of funding causes many promising projects to fail, and this problem affects all areas and kinds of businesses in Indonesia, not only those included in government programs. This issue affects MSMEs generally as well as digital start-ups, as the latter are vital to the GDP of the country and its ability to withstand financial downturns.
Although the government has offered financial assistance and credit in addition to other forms of support during the epidemic, not all MSMEs actors have benefited equally from these initiatives. Herein lies the potential of crowdfunding, an approach that was first introduced in the United States in 2003. Korea embraced this idea in 2016, making it possible for traditional MSMEs and digital start-ups to obtain capital from regular investors via specialized platforms.
Indonesia's Crowdfunding Adventure: From Laws to Implementation
Thankfully, crowdsourcing has gained traction in Indonesia. Regulations such as OJK Regulation No. 37/POJK.04/2018 have made equity crowdfunding platforms like bizhare.id and santara.co.id possible since 2018. With the introduction of securities crowdsourcing more recently, OJK Regulation No. 57/POJK.04/2020—amended by OJK Regulation No. 16/POJK/04/2021—addressed the shortcomings of the previous equity crowdfunding model. A greater variety of securities (bonds, shares, sukuk) and issuers (any corporate entity, even non-legal) are permitted under this extended version.
Presently, LandX, Bizhare, Crowddana, Danasaham, and Santara are the five fintech businesses that are licensed to conduct crowdsourcing investments in Indonesia. MSMEs nationwide will be empowered as the process of obtaining funding becomes more democratic and accessible as the number of suppliers increases.
Democratizing Investment and Strengthening MSMEs: The Path Ahead
A clear way forward is provided by the lessons learned from Start-Up and the promise of crowdfunding: enabling MSMEs by giving them more access to cash. Indonesia can foster an inclusive and resilient economy and unleash the entrepreneurial spirit of its people by introducing and promoting effective crowdfunding platforms. For many Indonesian MSMEs, the drama's vision of democratically driven corporate growth is achievable with the correct collaborations and structure.
