Crowdfunding Development Analysis as An Alternative MSME Funding in Indonesia

Abstract

This study examines the development of crowdfunding as an alternative financing for MSMEs in Indonesia. This study uses a literature study method to investigate the strategic role of MSMEs in the Indonesian economy. MSMEs contribute 61% of the GDP and employ 97% of the national workforce, but they face difficulties in obtaining formal financing. OJK data shows that funding through crowdfunding platforms has increased significantly from 1.5 trillion rupiah in 2018 to 15 trillion rupiah in 2022. The results of the study indicate that three main factors influence the success of using crowdfunding: MSME internal capacity (digital and management capabilities), platform quality (reputation, assistance, and technology), and external factors (macroeconomic conditions and regulations). Despite issues such as data security and default risks, crowdfunding appears to have promising prospects for growth, with an estimated funding value of IDR 45 trillion in 2025. To support the sustainable growth of the crowdfunding industry, this study suggests strengthening the regulatory framework, improving platform technology capabilities, and increasing digital financial knowledge for MSMEs.