Indonesia has been recognized as one of the most generous countries.
In 2022, Indonesia was once again ranked the most generous country in the world by the Charities Aid Foundation’s World Giving Index. The country scored an average of 68% across three indicators: helping strangers (58%), donating money (84%), and engaging in volunteer activities (63%).
Dr. Jodi Visnu, a health marketing and health philanthropy consultant at the Center for Health Policy and Management at Universitas Gadjah Mada (UGM), stated this achievement marked the fifth consecutive year of recognition.
This achievement serves as evidence that the concept of philanthropy in Indonesia has been nurtured for a long time through a culture of mutual assistance and has often inspired neighboring countries in Southeast Asia, such as Singapore, Brunei Darussalam, and Malaysia.
“Following the pandemic, Indonesia has reemerged with development activities,” Dr. Visnu said on Tuesday (10/10).
“Three years ago, when the pandemic first hit, numerous instances of external aid from the private sector were found to be flexible, rapid, and capable of reaching the most affected areas without government bureaucracy.”
Dr. Visnu admitted that the government also needs external assistance to complement its efforts in disaster management, whether natural or non-natural disasters.
This assistance goes beyond financial contributions provided through humanitarian aid by high-net-worth individuals. It includes donations from communities through various crowdfunding platforms that can be used to help many people facing disasters.
Dr. Visnu mentioned that philanthropy conducted through Zakat was very high during the COVID-19 pandemic.
Philanthropic activities are expected to continue. Therefore, one of the target groups is Generation Z, who have begun philanthropic activities by allocating part of their pocket money to philanthropy.
“As a result, many members of Generation Z are already participating in philanthropic activities, contributing a minimum donation of 10,000 rupiahs,” Dr. Visnu said.
Shita Listya Dewi from the Center for Health Policy and Management added that health financing cannot rely solely on the state.
The state’s health financing capacity has its limits, meaning that expenditures on the health sector, typically covered by the National Health Insurance (BPJS Kesehatan), the State Budget (APBN), or Regional Budgets (APBD), will never be sufficient.
Therefore, the ministerial regulation governing public-private partnerships should encourage the search for complementary funding sources, including health philanthropy.
“To achieve sustainability, philanthropists, both individuals and organizations, must be involved in planning. This involvement should not be limited to major cities but should also extend to rural areas, which also require support,” she stated.
Without the early involvement of philanthropic organizations, there is little chance of engaging them in healthcare financing. Therefore, there is a need for regulation or a review of the 1961 Ministerial Regulation governing the collection of goods and money.
According to Shita Dewi, other policies related to the willingness to donate should be emphasized because they have not been sufficiently encouraged.
One aspect that needs attention is that health philanthropy has not received tax incentives. Tax incentives should apply to donors (as a tax deduction) and foundations or philanthropic organizations.
“This has hindered health donors or philanthropists from flourishing,” she stated.
The Center for Health Policy and Management organized the 4th National Health Philanthropy Forum, which was held in a hybrid format from October 10 to 11, 2023.
This year’s forum focuses on “Implementing the Spirit of Generosity in the Health Sector: Social Investment and Sustainable Philanthropy for Equitable Health Services and Improved Quality of Life.”
Author: Agung Nugroho