Indonesia Impact Alliance Aims to Draw Private Capital for Good
Kanebridge News
Share Button

Indonesia Impact Alliance Aims to Draw Private Capital for Good

By ABBY SCHULTZ
Thu, May 11, 2023 8:23amGrey Clock 3 min

The Ford Foundation, alongside government organisations and the business community, launched the Indonesia Impact Alliance in Jakarta on Wednesday to attract more private capital into ventures that solve social and economic problems while earning market returns.

The alliance is being forged at a time when Indonesia is thriving in many ways. In 2021, the Southeast Asian nation regained status lost during the pandemic as an upper-middle-income country, according to the World Bank.

Yet, Indonesia, the fourth-most-populous nation in the world, is home to many people who remain in poverty without sufficient access to education and health services. While abundant in natural resources, the country has also suffered environmental degradation from exploitation of its rainforests for palm oil—a practice that is subsiding from a combination of government and nonprofit efforts.

As the economy continues to grow, the government alongside the United Nations Development Programme Indonesia, Ford, and others, want to ensure society and the environment are taken into account. The alliance aims to boost direct investment into “early-stage, high-impact companies” through increasing investment from investors within the country and abroad, and from the Indonesian diaspora, according to a news release.

“The alliance is about creating a kind of a centre of gravity for diverse stakeholders in Indonesia that all have a shared interest in marshalling more private capital in the service of just and sustainable development,” says Margot Brandenburg, head of impact investments for Ford’s US$1 billion mission investments program.

Chairing the alliance is Romy Cahyadi, CEO of Instellar, an Indonesia company that supports social enterprises through incubation, advisory, and investment.

Members of the alliance are “entrepreneurs, companies that are delivering these impacts, the funds and intermediaries that place capital in those companies, and asset owners,” Brandenburg says. “It also importantly needs to include the government, which can create, and we believe should create, an enabling environment for this type of investment and that can compliment private capital and do things that the private sector can’t do.”

The alliance also includes technical assistance providers of nongovernmental organisations in addition to global and regional economic development institutions. Temasek, the sovereign wealth fund of the nearby nation of Singapore, is also taking part. It needs to be all of those actors, she says, and “we need them all rowing in the same direction.”

Indonesia receives significant impact investing support from a third of those who invest for impact globally, according to a 2018 report from the Global Impact Investing Network. At the time of the report, private institutions had invested nearly US$149 million in 58 transactions, while development finance institutions had invested US$3.6 billion in 67 deals. Many of these investments are still at an early stage, according to Ford.

The alliance is being formed now as a “call to action,” for various governmental bodies, NGOs, and private actors to work together, Brandenburg says. “The sense is that there’s a diverse group of stakeholders working not always in coordination.”

Given the size of the country and its economy, there are people “working across sectors and geographies that may not be in relationship with one another

or may not have connected the dots,” she says. “That’s the role that government policy and regulation play in creating a favourable investment environment

and vice versa.”

The ultimate goal, Brandenburg says, “is to make sure that the whole is at least as great as the sum of the parts, so that people can build off of one another

and not inadvertently duplicate efforts.”

The alliance is affiliated with the Global Steering Group on impact investments, which has national associations in a number of countries, including the U.S. Impact Investing Alliance. Being part of this group gives the new Indonesia alliance access to resources, models, and policy blueprints that have succeeded elsewhere.

A question for Indonesia will be how to take advantage of natural resources that produce cloves, cinnamon, nutmeg, and vanilla, in addition to palm oil, natural rubber, cassava, and coconut oil, while not exploiting workers and local communities or harming the environment.

“Biodiversity is a major asset, but of course with that, [there’s] palm oil and logging and the potential for extractive industries,” Brandenburg says. “The question for impact investors is what does a better model look like that allows a country to prosper on the basis of its natural resources and allows its communities to prosper as well.”



MOST POPULAR
11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

Related Stories
Money
New York Watch Auctions Record Uptick in Sales in the Face of Market Slowdown
By LAURIE KAHLE 24/06/2024
Money
The Crazy Economics of the World’s Most Coveted Handbag
By CAROL RYAN 24/06/2024
Lifestyle
Why It’s Easier Than You Think to Score a Coveted Table When Visiting Paris for the Olympics
By SHIVANI VORA 23/06/2024
New York Watch Auctions Record Uptick in Sales in the Face of Market Slowdown
By LAURIE KAHLE
Mon, Jun 24, 2024 4 min

Luxury watch collectors showed ongoing strong demand for Patek Philippe, growing interest in modern watches and a preference for larger case sizes and leather straps at the June watch sales in New York, according to an analysis of the major auctions.

Independent and neo-vintage categories, meanwhile, experienced declines in total sales and average prices, said the report from  EveryWatch, a global online platform for watch information. Overall, the New York auctions achieved total sales of US$52.27 million, a 9.87% increase from the previous year, on the sale of 470 lots, reflecting a 37% increase in volume. Unsold rates ticked down a few points to 5.31%, according to the platform’s analysis.

EveryWatch gathered data from official auction results for sales held in New York from June 5 to 10 at Christie’s, Phillips, and Sotheby’s. Limited to watch sales exclusively, each auction’s data was reviewed and compiled for several categories, including total lots, sales and sold rates, highest prices achieved, performance against estimates, sales trends in case materials and sizes as well as dial colors, and more. The resulting analysis provides a detailed overview of market trends and performance.

The Charles Frodsham Pocket watch sold at Phillips for $433,400.

“We still see a strong thirst for rare, interesting, and exceptional watches, modern and vintage alike, despite a little slow down in the market overall,” says Paul Altieri, founder and CEO of the California-based pre-owned online watch dealer BobsWatches.com, in an email. “The results show that there is still a lot of money floating around out there in the economy looking for quality assets.”

Patek Philippe came out on top with more than US$17.68 million on the sale of 122 lots. It also claimed the top lot: Sylvester Stallone’s Patek Philippe GrandMaster Chime 6300G-010, still in the sealed factory packaging, which sold at Sotheby’s for US$5.4 million, much to the dismay of the brand’s president, Thierry Stern . The London-based industry news website WatchPro estimates the flip made the actor as much as US$2 million in just a few years.

At Christie’s, the top lot was a Richard Mille Limited Edition RM56-02 AO Tourbillon Sapphire
Richard Mille

“As we have seen before and again in the recent Sotheby’s sale, provenance can really drive prices higher than market value with regards to the Sylvester Stallone Panerai watches and his standard Patek Philippe Nautilus 5711/1a offered,” Altieri says.

Patek Philippe claimed half of the top 10 lots, while Rolex and Richard Mille claimed two each, and Philippe Dufour claimed the No. 3 slot with a 1999 Duality, which sold at Phillips for about US$2.1 million.

“In-line with EveryWatch’s observation of the market’s strong preference for strap watches, the top lot of our auction was a Philippe Dufour Duality,” says Paul Boutros, Phillips’ deputy chairman and head of watches, Americas, in an email. “The only known example with two dials and hand sets, and presented on a leather strap, it achieved a result of over US$2 million—well above its high estimate of US$1.6 million.”

In all, four watches surpassed the US$1 million mark, down from seven in 2023. At Christie’s, the top lot was a Richard Mille Limited Edition RM56-02 AO Tourbillon Sapphire, the most expensive watch sold at Christie’s in New York. That sale also saw a Richard Mille Limited Edition RM52-01 CA-FQ Tourbillon Skull Model go for US$1.26 million to an online buyer.

Rolex expert Altieri was surprised one of the brand’s timepieces did not crack the US$1 million threshold but notes that a rare Rolex Daytona 6239 in yellow gold with a “Paul Newman John Player Special” dial came close at US$952,500 in the Phillips sale.

The Crown did rank second in terms of brand clout, achieving sales of US$8.95 million with 110 lots. However, both Patek Philippe and Rolex experienced a sales decline by 8.55% and 2.46%, respectively. The independent brand Richard Mille, with US$6.71 million in sales, marked a 912% increase from the previous year with 15 lots, up from 5 lots in 2023.

The results underscored recent reports of prices falling on the secondary market for specific coveted models from Rolex, Patek Philippe, and Audemars Piguet. The summary points out that five top models produced high sales but with a fall in average prices.

The Rolex Daytona topped the list with 42 appearances, averaging US$132,053, a 41% average price decrease. Patek Philippe’s Nautilus, with two of the top five watches, made 26 appearances with an average price of US$111,198, a 26% average price decrease. Patek Philippe’s Perpetual Calendar followed with 23 appearances and a US$231,877 average price, signifying a fall of 43%, and Audemars Piguet’s Royal Oak had 22 appearances and an average price of US$105,673, a 10% decrease. The Rolex Day Date is the only watch in the top five that tracks an increase in average price, which at US$72,459 clocked a 92% increase over last year.

In terms of categories, modern watches (2005 and newer) led the market with US$30 million in total sales from 226 lots, representing a 53.54% increase in sales and a 3.78% increase in average sales price over 2023. Vintage watches (pre-1985) logged a modest 6.22% increase in total sales and an 89.89% increase in total lots to 169.

However, the average price was down across vintage, independent, and neo-vintage (1990-2005) watches. Independent brands saw sales fall 24.10% to US$8.47 million and average prices falling 42.17%, while neo-vintage watches experienced the largest decline in sales and lots, with total sales falling 44.7% to US$8.25 million, and average sales price falling 35.73% to US$111,000.

MOST POPULAR
11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

Related Stories
Money
The Crazy Economics of the World’s Most Coveted Handbag
By CAROL RYAN 24/06/2024
Property
The significant retirement cost awaiting more Australian homeowners
By Bronwyn Allen 20/06/2024
Property
Property of the Week: 5903/1A Barangaroo Avenue, Barangaroo
By Josh Bozin 19/06/2024
0
    Your Cart
    Your cart is emptyReturn to Shop