Antara News·Indonesia·Friday, October 2, 2026 at 09:34 AM UTC

Ministry urges shift in philanthropy toward community empowerment

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Anita Permata, Raka Adji

Jakarta (ANTARA) - The Coordinating Ministry for Community Empowerment is advocating a shift in philanthropy, moving beyond traditional assistance toward empowerment support that builds local capacity and fosters self-reliance.

"Our focus should not just be on distributing philanthropic funds, but on ensuring those resources deliver a real impact on public welfare and help communities become more empowered," said Suwatin, Assistant Deputy for Social Empowerment at the ministry, in Jakarta on Friday.

She noted that this approach aligns with Presidential Instruction No. 8/2025 on the Optimization of Poverty Alleviation and the Elimination of Extreme Poverty, which emphasizes multi-stakeholder collaboration centered on community empowerment.

Data from Statistics Indonesia (BPS) shows the poverty rate dropped to 8.07 percent, or 22.93 million people, in March 2026, while the extreme poverty rate fell to 0.61 percent.

While these achievements mark an important milestone, further acceleration is needed to eliminate extreme poverty in 2026 and bring the overall poverty rate down to 5 percent by 2029.

"To achieve this, all sectors of society must be engaged, including philanthropic organizations," Suwatin said.

The potential of this sector is clearly reflected in zakat (Islamic alms). Data from the Religious Affairs Ministry shows collections of zakat, infak (donations), sedekah (charity), and other religious social funds reached Rp44.7 trillion (US$2.49 billion) in 2025.

About 81 percent of these funds were distributed through registered institutions directly to poor and underprivileged communities.

However, the expansion of philanthropy faces regulatory hurdles.

Collection of money or goods is governed by Law No. 9/1961 and Government Regulation No. 29/1980, both framed before the rise of online banking, digital wallets, and crowdfunding platforms.

The Social Affairs Ministry recorded 108 ministerial-level collection permits issued to 47 organizations in 2025, with total reported funds amounting to Rp562.4 billion (US$31.3 million).

More than 95 percent of these funds were raised through digital platforms, even though existing regulations do not specifically cover online fundraising.

"Because of this, we need to ensure regulations keep pace with the times, providing legal certainty for compliant organizations while protecting both donors and beneficiaries," Suwatin said.

She added that philanthropic organizations should serve as strategic government partners in community empowerment.

Funds raised should not merely address short-term needs, but also support skill development, economic access, and community self-reliance.

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