chapter  4
18 Pages

Social Enterprise in Indonesia

Emerging Models Under Transition Government
WithAluisius Hery Pratono, Pauline Pramudija, Ari Sutanti

Indonesia has been witnessing the development of the role of the third sector through the emergence of social enterprises. The Indonesian Constitution underlines the fact that the economy is required to adopt the cooperative principles, and the emerging concept of social enterprise has raised attention for the Indonesian third sector. This chapter presents the historical context influencing social enterprises, and describes the various forms of support available to social enterprise in Indonesia. Under the colonial regime, the types of civil society organisations could be identified on the basis of the social services they provided. The origins of market-based approaches to solving social problems can be traced back in the history of religious organisations. Education and health services remained major economic activities for some religious organisations during the second dictatorship regime. The government supports the emergence of third-sector organisations by creating, through policies and regulations, a conducive environment for organisations to develop.