Exploring the Essence of Indonesian Securities-Based Crowdfunding

Abstract

In Indonesia, crowdfunding is widely acknowledged as a collaborative financing method, enabling businesses, projects, or initiatives to raise funds through community engagement on online platforms. This collective funding strategy serves a variety of purposes, including support for humanitarian causes, education, business ventures, political campaigns, public infrastructure, and innovative endeavors. Crowdfunding has risen to prominence as a vital financial tool for entrepreneurs in search of capital, leading to significant expansion in this funding model. The regulatory framework in Indonesia has undergone evolution, transitioning from Equity Crowdfunding to Securities Crowdfunding (SCF). SCF stands out as a remarkable alternative to conventional non-bank funding, offering manifold advantages for business development by encouraging creativity and innovation. Despite its beneficial impact, regulatory challenges remain, particularly in implementing rules consistently across diverse business entities involved in crowdfunding, regardless of their profit or non-profit objectives. This study seeks to illuminate critical areas that warrant careful consideration by the Indonesian government in the domain of crowdfunding regulation. While current regulations are predominantly centered on securities crowdfunding, there are still uncertainties concerning the foundational principles and aims of crowdfunding. This situation poses a pivotal question: What trajectory does the Indonesian government envision for crowdfunding activities — a focus on profit generation or a dedication to non-profit pursuits? This highlights the pressing necessity for a thorough review and detailed examination of the existing regulations, aiming to establish guidelines that protect the interests of all stakeholders, thereby averting any perception of unfairness or exploitation.