Cover photo from Irgi Nur Fadil
By: Gusman Yahya, Executive director, Indonesia Philanthropy Association
Philanthropy in Indonesia has once again accomplished something truly spectacular. The Charities Aid Foundation’s 2022 World Giving Index placed Indonesia at the top of the list as the most charitable nation in the world once again, for the fifth year in a row.
The advancements and successes of all charitable endeavours in Indonesia cannot be separated from culture, the spirit of mutual aid, trust, co-creation, and collaboration to alleviate the social problems present in the country. One factor contributing to the number of donations is religious giving, like zakat, infaq, and sadaqah, driven by the value of sharing what you have with humanity.
Additionally, Indonesia possesses a cultural heritage that brings its people together. This was evident in all the work done together to overcome the Covid-19 pandemic. This cultural practice is known as gotong royong. Gotong royong is a term for working together to achieve a desired result. This term comes from the Javanese words “gotong” which means “lifting” and “royong” which means “together”. Gotong royong has become part of the personality of the nation and is a cultural practice that is firmly rooted in people’s lives in Indonesia.
The Indonesia Philanthropy Outlook 2022 report, a publication issued by Filantropi Indonesia, highlights seven trends of philanthropy in Indonesia that both directly and indirectly, contribute to the attainment of being the most giving country in the world (Filantropi Indonesia, 2022):
1. The broad scope of charitable activities. Many organisations are active not only in the local area where they are domiciled but also on a national and international scale. The operational areas of existing philanthropic organisations are dispersed across Indonesia, which indicates the widespread nature of philanthropic activity across the country.
2. The establishment of corporate philanthropy. Corporate philanthropy is one type of a company’s CSR programme and is carried out or made possible through the dispersal of gifts or corporate social funds. In the past few years, corporate philanthropy has developed into one of the most encouraging tendencies seen in the philanthropy field in Indonesia. Between 2018-2020, corporate philanthropy activities contributed a total of 2.3 trillion Rupiah (146,6 million USD); this amount increased annually over the course of the period.
3. Family foundations are becoming more independent. The years 2000 to 2010 were pivotal in the establishment and growth of family foundations, despite the fact that a number of family foundations had been operational since the 1990s. Numerous family foundations have now started to distance themselves from the companies that originally formed them. This change is the result of efforts made to preserve the autonomy of family foundations, a trend favourable for Indonesian philanthropy.
4. Increase of philanthropic funds. There is an increasing amount of philanthropic money being collected and utilised by various charitable organisations. The percentage of philanthropic funds that were put to use rose by 6.45% between the years 2018 and 2019 and by 23.05% between 2019 and 2020. Over the past three years, charitable activities have contributed at least 39.6 trillion Rupiah (2.516 billion USD) to various initiatives designed to assist the development agenda. Faith-based foundations are the institution involved in charitable giving that make the most use of the funds, contributing 77.7% of the total amount distributed.
5. More people are receiving benefits. In the period 2018-2020, charitable activities helped 91.7 million people, and this number is expected to grow annually. In the year 2020, there was a rise of 41.15% in the total number of people who benefited from charitable giving programmes initiated by philanthropy organisations. One of the most important factors contributing to this rise was the Covid-19 pandemic at the beginning of 2020.
6. The complementary relationship between philanthropy and the SDGs. The government recognises that the contribution of philanthropic organisations to achieve the Sustainable Development Goals (SDGs) is very significant. The SDGs have been adopted as a programme reference by the vast majority of charitable organisations involved in the study (84,9%).
7. Positive impact of new technology. New innovations for philanthropy that improve fundraising and donations have contributed positively to an increase in the total amount of money that is raised. For example, digital platforms that permit crowdfunding contribute a considerable amount toward making it easier for consumers to donate money to charitable causes.
Indonesia’s persistence as the world’s most giving nation for five straight years is worthy of recognition. This momentum by the nation encourages the exploration of greater collaboration among stakeholders through collective actions that can significantly impact achieving social justice and development challenges, particularly in achieving sustainable development goals and addressing the climate change agenda.
Strengthening the philanthropy ecosystem to support the development of philanthropy in Indonesia, including supporting policies/regulations, capacity building and professionalism, accountability and ethics, and collaboration and co-creation through collective actions among stakeholders is expected to increase the quantity and quality of philanthropic activities. And it is the philanthropy community’s hope that strong philanthropy actors combined with a strong philanthropy ecosystem will encourage more contributions, public participation and an even stronger culture of giving in Indonesia and beyond.
Gusman Yahya is currently the Executive Director of the Indonesia Philanthropy Association. Indonesia Philanthropy Association is an independent association that aims to advance the philanthropy sector to achieve social justice and sustainable development in Indonesia. During his 21 years of career experience working in various non-profit organizations, Gusman has developed and executed many strategic initiatives, including developing and managing non-profit entities and programs in the area of social development. He holds a Master of International Business Degree from the University of Wollongong, NSW – Australia, and Graduate Degree in Mechanical Engineering from Trisakti University, Jakarta, Indonesia.
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