Equity Crowdfunding Platform for Green MSME Financing | Climate Finance, Indonesia 2020
The Equity Crowdfunding Platform for Green MSME Financing solution, developed by Perkumpulan Untuk Peningkatan Usaha Kecil (PUPUK) builds on existing efforts to use public capital to spur MSME growth. This solution will:
- Focus on green MSMEs, an untapped niche within existing crowdfunding platforms.
- Attract private investors by offering a pipeline of bankable MSMEs in a one-stop-shop for MSME financing.
- Aggregate green MSMEs through partner business development service providers (or intermediaries), where finance is released to MSMEs in aggregate working with the specific BDS provider who has delivered cleaner production and green business advisory to the specific MSMEs integrated into the platform.
BDS providers will select MSMEs who they are supporting with cleaner production or green business development to take part in the crowdfunding platform, with a focus on micro- and small- businesses. In particular, the platform will target MSMEs operating in the following sectors: food, beverage, HV farm, health, logistics, IT, eco-tourism, fashion, film, coffee, and energy. All MSMEs will actively be engaged in green or cleaner production activities to ensure that they:
- Avoid harm to the environment (for example, by reducing greenhouse gas emissions or improving the energy efficiency of their business activities); or
- Actively contribute to designing and selling environmentally sustainable products and services.
The SEED Practitioner Labs Climate Finance in Indonesia engaged financial institutions, funders, intermediaries and other SME ecosystem stakeholders over a multi-step process to co-create innovative climate finance products and mechanisms that extend access to long-term financing opportunities for “missing middle” small and growing climate-smart enterprises that struggle to advance beyond the start-up stage and multiply their contributions to climate-smart and socially inclusive economies.
