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When we talk about crowdfunding in Indonesia, we are referring to an extensive online funding system where individuals - from students to retirees - can support startups, charity initiatives, farmer co-operatives or creative projects. Thanks to digitalisation and the active development of fintech, crowdfunding has become available even in remote regions of the archipelago, and this process is only gaining momentum, but the maximum share of foreign ownership is 49%.
In essence, crowdfunding is a decentralised way of raising capital where money is raised in small amounts from a large number of people through online platforms. It covers both donations on a pro bono basis and investments in exchange for a stake in a project or a return with interest. And importantly, in the Asian economic boom, it is massfunding in Indonesia that has begun to play a key role in increasing financial inclusion and micro-entrepreneurship.
According to official data from Indonesia's Financial Services Authority (Otoritas Jasa Keuangan, abbreviated as OJK), by 2024, transaction volume in the equity and debt crowdfunding sector has grown by tens of per cent year-on-year. This indicates growing confidence on the part of investors and interest on the part of borrowers. Start-ups, agri-projects and social campaigns are particularly active in using this mechanism. Thus, crowdfunding in Indonesia has become not just a fashion trend, but a sustainable financial instrument that can replace traditional financing channels, especially where access to bank loans is limited or non-existent.
Types of crowdfunding
Crowdfunding in Indonesia comes in several forms, each targeting specific purposes and categories of participants, from charitable organisations to technology start-ups. In practice, I often find that entrepreneurs and investors confuse these forms with each other, which can lead to legal and financial mistakes. Therefore, it is essential to understand the differences and specifics of each model.
Donation-Based Crowdfunding (Donation-Based Crowdfunding)
Donation-based crowdfunding in Indonesia became particularly popular during the pandemic, when thousands of fundraising projects for medical needs, low-income families and educational initiatives raised millions of rupiahs in a matter of days. In this model, people transfer money with no expectation of financial return - purely for altruistic or social reasons.
The most prominent example is the Kitabisa platform, which is now considered the leader in donor crowdfunding in Indonesia. Here, anyone can launch a campaign, whether it is for medical treatment, disaster relief or support for an orphanage. From a legal point of view, such collections are not regulated as investments, but organisers are obliged to strictly follow the platform's rules, disclose the purpose of the collection and provide reporting. This is important both in terms of transparency and fraud prevention.
Reward-Based Crowdfunding (Reward-Based Crowdfunding)
Crowdfunding in Indonesia is also in the form of reward-based campaigns, where in return for a contribution, participants receive a product or unique service. This can be early access to a product, a subscription, a limited edition souvenir or a personalised ‘thank you’. This format is most often used by creative entrepreneurs, artists and technology start-ups that need to test the market and attract their first loyal customers.
For example, the Kolase platform is actively used to raise funds for releasing music albums, shooting films or publishing books. From a legal point of view, such projects are not considered as investments, but as a pre-sale, so it is important to correctly specify the terms of remuneration, terms of performance and possible risks of failure to fulfil the promised performance.
Equity Crowdfunding
As far as investment massfunding in Indonesia is concerned, equity publicfunding is considered to be the most important form. In this case, investors actually become co-owners of the company, receiving a share in exchange for their investment. This format is regulated directly by the OJK - the Indonesian Financial Authority - and is subject to strict requirements both for licensing platforms and protecting investors' interests.
One of the key players in the equity crowdfunding market is Bizhare, where you can invest in tiny and medium-sized businesses such as cafes, mini-hotels, and retail chains. One of the features here is the ability to start with minimal investment, which opens up investment to a wide range of people, including young professionals and freelancers. However, as a lawyer, I always emphasise the importance of assessing a company's legal structure, financial statements and terms of share issue - not all projects are equally transparent and reliable.
Debt-Based Crowdfunding (Debt-Based Crowdfunding or P2P Lending)
Crowdfunding in Indonesia is increasingly employed as an alternative to traditional bank financing, primarily through a peer-to-peer (P2P) lending model. Within this framework, investors extend credit to individuals or small enterprises, expecting repayment with interest over a defined term. Functioning as a private microfinance ecosystem, this sector is regulated by the OJK and mandates that platforms acquire a specific operating licence.
Platforms like Modalku and Akseleran provide an opportunity to finance business projects with returns higher than bank deposits. However, this also comes with increased risks of default. In my practice, there have been cases when investors lost money because of borrowers' insolvency. Therefore, checking credit history, business model and collateral is not just a recommendation, but a necessity when working with such platforms.
Thus, crowdfunding in Indonesia is a flexible and multifaceted tool that can serve both social and investment purposes. Understanding the differences between the models allows you to build financing and investment strategies more intelligently and safely.
Legal framework for crowdfunding in Indonesia
Crowdfunding in Indonesia is regulated by the state quite strictly, especially in those models where investments or loans are involved. As a lawyer supporting investment and fintech projects in Southeast Asia, I can confidently say: Indonesia is one of those jurisdictions where the legislator seeks to balance the interests of platforms, investors and borrowers. This is especially important in a fast-growing segment where financial misconduct and abuse are not uncommon.
Regulation by Otoritas Jasa Keuangan (OJK)
Crowdfunding in Indonesia, if it involves raising capital from the general public, is under the jurisdiction of Otoritas Jasa Keuangan (OJK), an Indonesian financial supervisory authority similar to European regulators like ESMA. The main regulatory document is OJK Regulation No. 37/POJK.04/2018, which came into force to ensure transparency, protect investors and minimise systemic risks.
This regulation covers investment models of crowdfunding, including equity and debt platforms, and imposes a number of restrictions on both the platforms' activities and the conditions of participation for investors and issuers. In practice, it has become the basis for licensing and enforcement in this area.
Requirements for platforms to obtain a licence from the OJK
A crowdfunding platform in Indonesia must be accredited by the OJK and obtain the status of Penyelenggara Layanan Urun Dana Berbasis Teknologi Informasi (PLUDBTI), which is the official name for regulated crowdfunding operators. Without this registration, investment operation will be recognised as illegal.
To obtain a licence, the company must be in the form of Perseroan Terbatas (PT), which is the equivalent of a limited liability company. The minimum authorised capital must be at least 2.5 billion Indonesian rupiah (approximately US$150,000), with at least 25% paid up by the time of application. A server infrastructure within the country is also required, ensuring that personal data is localised.
Requirements for crowdfunding platforms
Crowdfunding in Indonesia also involves cybersecurity and data protection obligations. Platforms are required to develop and publish clear policies regarding the handling of user information, have internal mechanisms to prevent money laundering and terrorist financing, and regularly report to the OJK on transactions and financial status.
In terms of disclosure, platforms are required to ensure full transparency of investment terms: disclosure of the borrower's business plan, financial model, project risks, terms of repayment or disposal of stakes. This is especially relevant for equity publicfunding, where the risk of capital loss is high.
Rights and obligations of issuers (borrowers)
Companies that want to raise funds through massfunding in Indonesia must fulfil a number of criteria. They must be registered as a lawful entity and have a business plan supported by financial models and analyses. In the case of the equity model, issuers are not allowed to offer more than 10 billion Indonesian rupiah in a single campaign (approximately 600 thousand USD), and repeat offerings are only possible after an interval of 12 months.
In addition, they are prohibited from misusing funds, manipulating reporting and changing the terms of fundraising without notifying investors. Both administrative and criminal liability is stipulated for this.
Investors' rights and obligations
Crowdfunding in Indonesia aims to protect retail investors, so restrictions are imposed on the maximum amount of investment. For example, an individual with an income below 500 million rupiah (30,000 USD) per year can invest no more than 10% of their annual income in crowdfunding projects. Wealthier investors (income above this threshold) have a limit of 20%.
Investors must acquaint themselves with associated risks, sign acknowledgements confirming their understanding of the investment terms and conditions, and complete Know Your Customer (KYC) procedures. Investment platforms are obligated to notify investors of the potential for loss of capital, the absence of guaranteed returns, and the limited liquidity of such assets.
Thus, crowdfunding in Indonesia is not just a fundraising technology, but a highly regulated financial service, and any company or investor wishing to operate in this field must not only consider the opportunities, but also be prepared to comply with clear legal rules.
Popular crowdfunding platforms in Indonesia
Crowdfunding in Indonesia is in practice inextricably linked to the activities of specialised platforms, each of which has chosen its own niche: from charity to financing small businesses and creative industries. As a lawyer who advises clients on the choice of legal investment instruments, I can confirm: choosing a platform is not just a matter of taste, but an important legal and financial decision. Each platform has its own regulatory obligations, internal structure and degree of investor protection.
Kitabisa
Massfunding in Indonesia is often associated in the public mind with the Kitabisa platform. It is the largest and most recognisable donor-centric service in the country. Here, campaigns are implemented to raise funds for medical treatment, education, assistance to victims of natural disasters, support for mosques, foundations and volunteer initiatives.
The platform demonstrates impressive figures. For example, one of the most notable campaigns in recent years, a fundraiser for the treatment of children with rare diseases, raised more than 10 billion rupees ($600,000) in less than a week. Given the scale of operations, Kitabisa pays special attention to project authentication, recipient verification and post-project reporting. From a legal perspective, although it is not investment crowdfunding, the platform must comply with requirements for identity protection, transparency and fraud prevention.
Akseleran
Crowdfunding in Indonesia is also actively developing in the form of P2P lending, with the Akseleran platform leading the way. It focuses on financing small and medium-sized businesses, from retailers to logistics companies. Akseleran is unique in that it offers investors tools to minimise risk, including collateral-backed loans, default insurance and a built-in scoring model.
For investors, the minimum entry threshold here is around Rs 100,000 (about $6) and yields can be as high as 16-18 per cent per annum. Borrowers are required to provide a validated business plan, financial statements and in some cases, collateral or surety. In my legal support of transactions through Akseleran, I always draw clients' attention to careful project selection and the importance of reading the loan agreement - the platform offers standard terms and conditions, but the responsibility still remains with the investor.
Modalku (Funding Societies)
Crowdfunding in Indonesia is receiving regional support and development through platforms such as Modalku, better known internationally as Funding Societies. It is a fintech group operating not only in Indonesia but also in Singapore, Malaysia, Thailand and Vietnam. The main focus of the platform is to provide short-term loans to SMEs that cannot get traditional bank financing.
Modalku is licensed by the OJK and demonstrates a strict approach to borrower monitoring. The platform also offers collective investment tools, allowing funds to be distributed among different projects. It is essential to realise that such platforms, having a cross-border structure, are subject to several jurisdictions at once, and therefore legal support when participating in a large investment is simply necessary.
Tanifund
Crowdfunding in Indonesia is also acquiring an agrarian dimension through the Tanifund platform, which specialises in financing farming and agro-industrial projects. This is one of the rare examples of “vertical” crowdfunding, where the entire infrastructure - from project preparation to crop realisation - is built within the ecosystem of a single company.
Farmers can raise funds for planting, purchasing machinery, fertilisers and logistics. Investors, in turn, receive a return after the agricultural cycle is completed. The platform operates on a P2P lending model, with legal formalisation through loan agreements. Here, the key legal risks remain seasonality, weather conditions and logistics, so supporting such an investment requires a deeper analysis of the contract, insurance mechanisms and force majeure clauses.
Kolase
Finally, crowdfunding in Indonesia could not be left out of the creative industries. The Kolase platform was created specifically to fund music, literary and visual projects. Here you can support the release of an independent album, the shooting of a short film, the publication of a graphic novel - and in return receive a mention in the credits, a copy of the work, tickets to events.
Kolase operates on a reward-based model and does not require an OJK licence, but still has to comply with general e-commerce and consumer protection regulations. The main legal challenge here is copyright protection and transparency in the distribution of rewards. When advising creative teams, I always recommend including a refund clause in case of project failure - at least in a simplified form.
Crowdfunding in Indonesia is thus represented by a wide range of platforms, each of which requires attention not only in terms of convenience but also legal security. Whether you plan to invest in a farming project or support a music album, it is essential to understand the legal nature of the relationship you are entering into.
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Investment Opportunities and Risks
Crowdfunding in Indonesia has long ceased to be solely a charity tool or a way to raise funds for creative initiatives. Today, it is a full-fledged investment channel that, with the right approach, can generate returns higher than bank deposits or conservative bonds. On behalf of a practicing lawyer who accompanies investment projects in Southeast Asia, I can tell you straightforwardly: crowdfunding in Indonesia is a chance to earn money, but it is also a significant risk, especially if you ignore the legal nuances.
Advantages of investing through crowdfunding
Crowdfunding in Indonesia has opened its doors to the general public, providing opportunities to participate in funding projects that were previously only available to venture capital funds and bank capital. Here you can support an early-stage startup, retail development, a farming project or a local creative business - all with minimal entry thresholds, sometimes from the equivalent of US$10.
Among the key benefits is access to a diversified portfolio. A single investor can simultaneously invest in an agribusiness, an e-commerce platform and a coffee shop chain. This reduces overall risk and allows for flexibility in responding to changes in the economy. In addition, many projects, especially through equity crowdfunding, offer not just a return, but a stake in a promising business with the potential for future capital growth. I often observe how individual startups, having started with equity massfunding, go IPO or receive rounds from large funds, bringing their first investors a return many times higher than what they invested.
Risks for investors
However, crowdfunding in Indonesia is not a guaranteed way to make money. In practice, it comes with a high degree of risk, especially for new companies without a proven business model. The project may fail to meet targets, encounter management errors or lose liquidity. This means that the return on funds may not take place at all.
One of the least discussed but key risks is the lack of a secondary market. Having invested, for example, in a share of a company through an equity platform, an investor cannot sell this share at any time. The payback may take 3-5 years or more, and all this time the invested funds are frozen. Moreover, even with repayment on debt instruments (P2P lending), there is no absolute certainty that the borrower will honour the obligations. The Indonesian market is not immune to defaults, especially in the face of macroeconomic fluctuations or falling demand in certain sectors.
Risk mitigation measures
Crowdfunding in Indonesia can be safe if the investor approaches the process with due diligence. The first thing I advise my clients is to analyse not only the project idea, but also the founders. The history, reputation, management experience of the team, availability of mentors or business angels - all of these can play a key role in the fate of the project.
The second critical point is the choice of platform. You should only work with those who are registered and licensed with the OJK. This is not only a sign of legality, but also a guarantee that a crowdfunding platform in Indonesia is obliged to comply with certain standards in terms of reporting, disclosure and dispute resolution. In my practice, there have been cases when a client chose a cheap alternative outside the official OJK list, resulting in losing money with no way to get it back.
Additionally, I recommend reading offers, user agreements and investment memoranda carefully. Even if it seems routine, it is these documents that spell out the terms of return, force majeure, dispute resolution mechanisms and other legal nuances that can significantly affect the outcome of an investment.
Thus, crowdfunding in Indonesia is certainly a window of opportunity, but also a field of legal liability. By investing wisely and knowledgeably, through proven platforms and with legal support, you increase your chances of success in this segment.
Taxation of Crowdfunding in Indonesia
Crowdfunding in Indonesia, like any financial activity, is subject to taxation. Understanding tax obligations is critical for all participants: investors, borrowers and platforms.
- P2P lending: Income earned by investors from interest payments on P2P loans is subject to withholding tax. The rate is 15 per cent for Indonesian residents and 20 per cent for non-residents. These amounts are withheld and remitted to the budget by the OJK-registered platform.
- Equity Crowdfunding: Gains from selling shares or receiving dividends are subject to capital gains tax or dividend tax respectively. Rates may vary depending on the status of the investor and applicable double taxation treaties.
- P2P lending: Interest paid on loans is considered a tax deductible expense. However, borrowers are required to ensure that tax on interest is withheld and remitted to the budget in accordance with the law.
- Equity financing: Funds raised through the issue of shares are not considered taxable income. However, companies are required to comply with reporting and tax requirements on future income such as dividends.
- Commissions and fees: The income of publicfunding platforms in Indonesia derived from service fees is subject to Corporate Income Tax (CIT) at a standard rate of 22%. This tax is levied on the company's net profit after deducting all allowable expenses. Platforms registered in the form of a legal entity (PT) are required to file annual tax returns and pay CIT in a timely manner as required by Indonesian tax laws.
Crowdfunding in Indonesia requires careful attention to tax obligations. It is recommended to consult with qualified tax professionals to ensure compliance with current tax regulations and optimise your tax burden.
Future trends and prospects for crowdfunding in Indonesia
Crowdfunding in Indonesia is not just evolving - it is transforming into one of the key tools for capital mobilisation in the nation's digital economy. As a lawyer who works closely with fintech companies and regulators, I see how quickly the landscape is changing: technology is becoming more complex and the lawful framework is becoming more rigid. And all this is logical, as transaction volumes and the number of crowdfunding participants are growing every quarter.
The rise in popularity of crowdfunding
Today, crowdfunding in Indonesia reaches millions of users. According to OJK alone, the total number of investors on P2P and equity publicfunding platforms has exceeded 1.7 million by the end of 2024. Forecasts for the next 3-5 years point to a doubling of these figures: transactions in the sector are expected to exceed Rp100 trillion (around US$6.5 billion) due to increased participation from both individuals and institutional investors. Growth is particularly strong in regions where traditional banking is either unavailable or does not meet the needs of small businesses.
This growth in the popularity of crowdfunding in Indonesia is due to a number of factors: improved digital infrastructure, high trust in local platforms, and active government support for SMEs. Moreover, in Indonesia's cultural context, the idea of collective participation and mutual aid (so-called gotong royong) blends seamlessly with the massfunding philosophy.
Integration with blockchain technology and cryptocurrencies
Crowdfunding in Indonesia may soon face a technological leap is the introduction of blockchain solutions and asset tokenisation. Already, some platforms are considering the use of smart contracts to automate revenue distribution, control the intended use of funds and ensure transparency of transactions. Distributed ledger technologies allow not only to increase trust in the platform, but also to solve one of the most painful issues - the creation of a liquid secondary market for shares in startups.
Pilot initiatives are currently under discussion in which participation in a crowdfunding campaign does not entail acquiring equity in a PT company, but instead involves purchasing a token that is linked to either a right to income or access to a product. This approach lies at the intersection of digital assets and investment legislation and will necessitate the development of a new regulatory framework. At present, cryptocurrency is acknowledged by Bank Indonesia and the OJK as a tradable commodity, but not as a valid medium of exchange. Nonetheless, regulatory discussions around Security Token Offerings (STOs) are already underway at the ministerial level, and it is highly likely that Indonesia will witness the emergence of legally compliant tokenised massfunding platforms within the next two to three years.
Strengthening regulation and investor protection
As crowdfunding in Indonesia involves an increasing number of non-professional investors, the regulator OJK is preparing a legal update. In particular, it plans to revise the maximum investment limits for individuals in 2025, make risk disclosure mandatory in video format (not just text), and introduce capital requirements for second-tier platforms (with high turnover or international investors).
In practice, this means that investors will find it easier to navigate the terms and conditions, and the platforms will be required not only to issue warnings but also to conduct mandatory online courses or tests to understand investment risks. I also expect there will be requirements for insurance for certain categories of investments or compensation funds in case of default - similar to European models.
Thus, crowdfunding in Indonesia has already entered a phase of maturity where sustainability, not just growth, is what matters. Investors and entrepreneurs will have to work in an environment where transparency, digitalisation and compliance will become mandatory conditions for access to money. And this is a good sign: the market is becoming more professional and therefore safer and more attractive.
Conclusion
Crowdfunding in Indonesia is a powerful tool that can work for you, but only with the right approach. If you are planning to launch your own project or want to start investing in promising areas, do not take risks without proper preparation. Legal mistakes in this market are costly.
If you need help with the legal formalisation of a crowdfunding campaign, platform verification or transaction support - leave a request. I will help you go from idea to result safely, competently and in compliance with all legal requirements.
Don't delay: crowdfunding in Indonesia is developing rapidly, and the earlier you enter the market with professional support, the better your chances of success. Write now and we can discuss how to turn opportunities into real results.
