Indonesia, which accounts for over 20% of total impact capital deployed in the ASEAN region, with investments totaling US$1.44 billion between 2020 and 2022, has emerged as a major force in impact investing. Recognizing Indonesia’s pivotal role in the Global South, Impact Investment Exchange (IIX), a pioneer in global impact investing based in Singapore since 2009, has intensified its focus on the country.
Led by its Founder and CEO, Professor Durreen Shahnaz, IIX has had a positive impact in 60 countries, mobilizing over $454 million and benefiting 160 million lives. Key initiatives include the Women’s Livelihood Bond™ (WLB) series and the Impact Partners™ platform, which connects high-impact businesses with impact investors.
At IIX, success depends on direct impact on the communities served, verified by the IIX Values™ impact measurement system, which leverages human-centered methodologies for data collection. Unlike traditional ESG metrics that focus on corporate behavior, IIX Values™ quantifies outcomes such as financial independence, health, education, and nutrition for underserved communities, verified and confirmed by women at the last mile. It combines qualitative and quantitative data to demonstrate both the breadth and depth of change, highlighting the value of last-mile verification to ensure investments truly make a difference.
In Indonesia alone, IIX has built an impact investing ecosystem that has raised over $56 million, supported over 33 companies across industries and sizes, and impacted over 6 million lives.
Impact on real life: testimonies from the field
Roro, a micro-enterprise owner selling traditional Indonesian cuisine from her home-based shop, increased her income by 10% with IIX support. She used IIX WLB2 funds to install toilets in her business premises, providing clean and safe water facilities, reducing the risk of exposure to COVID-19 and improving her livelihood.
(Courtesy of Impact Investment Exchange (IIX))
Isniwati, who resides in one of Indonesia’s areas where water stress is exacerbated by climate change, is a beneficiary of a WLB transaction. WLB transactions are the first ASEAN-focused gender bonds in the market to qualify as Orange Bonds, which have cross-cutting benefits in gender equality, climate action, and women’s economic empowerment. In 2022, Isniwati received a water and sanitation loan facilitated by IIX. The loan was transformative for her, saving her up to three hours a day that she previously spent collecting water. Improved access to water resources has significantly improved her family’s health and sanitation outcomes. Isniwati is one of nearly 3,000 Indonesian women who have become better adapted to climate change thanks to proceeds from Orange Bonds.
The Orange™ movement in Indonesia
IIX is expanding its transformative Orange Movement™ to Indonesia. This global initiative empowers women, girls and gender minorities, in line with the United Nations Sustainable Development Goal (SDG) 5 on gender equality, represented by the color orange.
The Orange Movement™ is tackling the $1.7 billion financing gap for the UN’s 17 SDGs. It seeks to build an inclusive future by advancing gender equality, economic growth, peace and security, and climate resilience. By unlocking $10 billion in capital by 2030, the movement aims to empower more than 100 million women, girls, and gender minorities around the world.
The Steering Committee, comprised of IIX alongside the United States International Development Finance Agency (US DFC), the Australian Department of Foreign Affairs and Trade (DFAT), Nuveen and Water.org, among others, plans to achieve the mission of the Orange Movement™ through the following key objectives:
- Establish a gender-sensitive financing system with transparent standards.
- Mobilizing new capital through gender-sensitive investment products.
- Innovating for gender equality and economic empowerment.
IIX’s next critical step is to amplify the Orange Movement™ presence in the Indonesian market. This initiative leverages innovative financing to advance gender equality and climate action, aligning with Indonesia’s SDG agenda. This initiative aims to diversify funding sources and accelerate progress towards Indonesia’s SDGs, supported by collaborative efforts to mobilize diverse stakeholders and attract committed investors.
(Courtesy of Impact Investment Exchange (IIX))
Through these strategic efforts, IIX aims to further develop Indonesia’s impact investing ecosystem, driving meaningful progress on gender equality and climate resilience.
Join the Orange™ movement: sign the Orange Pledge
The Orange Movement™ invites you to join us by signing the Orange Pledge, supporting the mission of creating a financial system that promotes gender equality. With over 76,000 signatories, the Orange Movement™ has raised $274 million, positively impacted 2.74 million lives worldwide, and is on the verge of achieving even greater goals.
Our mission is to empower Indonesian women, girls and gender minorities by improving financial inclusion, mobilizing capital and catalyzing societal transformation. By signing the Orange Pledge, you will receive exclusive access to insights on effective gender equality solutions, updates on gender-responsive investments through Orange transactions and opportunities to help shape a future of true gender equality.
Together, let’s make a difference and build a more inclusive world. Sign the Orange Pledge today and join this transformative journey.
This article is published in collaboration with Impact Investment Exchange (IIX)
