The ever-increasing need for sustainable growth in the global economy has given rise to new ways and principles of acquiring assets that create value not only for investors, but also for society as a whole and the environment. For those seeking alternatives to their traditional portfolios and looking for purpose-driven investments to address long-term challenges, welcome to “Impact Investing”.

WHY IMPACT MATTERS

Impact investing, a way to generate measurable positive social and/or environmental benefits while delivering financial returns, is expanding as a promising economic opportunity for investors, stakeholders, and growing entrepreneurs in the developing world. To broaden the scope of environmentally and socially clever business decisions, impact investments have emerged as a sensible response to many socio-economic challenges. This strategy allows investors to intentionally pursue investments on business models that actively combat global issues, and by doing so contribute to the healthy development of the emerging global market economies while giving back to local communities and sustaining livelihoods.

When applied to specific social causes, impact investing has the potential to bring more capital and fresh approaches to targeted issue areas, as investors can directly subsidise organisations aligned to the Sustainable Development Goals (SGDs). The relationship between impact and investments can be easily conveyed and articulated using SDGs framework. Some of the objectives include, quality education, clean water and sanitation, affordable and clean energy, industrial and infrastructure innovation and climate action.

BIG NAMES ALSO ON THIS JOURNEY

In times of recurring risk aversion, capital volatility and stringency in public funding, many of the world’s largest foundations have pledged a significant portion of their assets towards impact investing such as, Ford Foundation’s $1 billion commitment being the largest to date and Goldman Sachs Urban Investment Group who committed over $4.7 billion, facilitating the creation and preservation of housing units that affordable to both low to moderate income family.

As this new culture of impact investing in Indonesia is now maturing with the agriculture and fisheries sector as the main focus of the economic market, which is experiencing +5% revenue growth every year, more localisation efforts are being made. Now investors are involving local stakeholders in the operational and fund allocation system, enabling collaboration in the development of the supply chain market. One of the most influential investors in this sector is Openspace Ventures, which is ranked 5th in the identified portfolio with 71% influence on Indonesian economy such as Halodoc, Tani Group, Akulaku, and Sorabel.

IMPACT AS THE NEW NORMAL

It is always a challenge to combine the numerous investment activities with social and environmental objectives. Our shared interest in achieving positive goals while reaping personal financial rewards will be the beginning of many future opportunities as we give back to communities and the natural ecosystems. With the right mix of social objectives and appropriate returns, impact investment is the benchmark we look for to improve portfolio performance. This applies to all sectors.

Here at BIC we see impact investing as more than a smart move, but as a responsibility towards the world that surrounds us. Impact is no longer an option, it has become the way every business should operate. Sustainability is now a collective exercise. We invite investors who share this same vision to help us support entrepreneurs who have the heart and determination to make a difference.

Welcome to Impact Investing