Indonesia’s Philanthropy Ranking Shifts, Momentum to Improve Philanthropy Ecosystem

In an article published on August 11, 2025, the Institute for Demographic and Poverty Studies (IDEAS) wrote that for seven consecutive years, Indonesia has been proud to be the “world champion” in generosity according to the World Giving Index (WGI). This title seems to be clear evidence that the culture of mutual cooperation and helping one another is still very strong in this country. However, the latest World Giving Report (WGR) 2025 came as a surprise: Indonesia’s position dropped to 21st out of 101 countries.

At first glance, it is natural for people to wonder: have Indonesians become more stingy? Or has the economic situation made people reluctant to share? It turns out that the answer is not that simple. In fact, the tradition of sharing and caring for others is still strong. The difference is that the WGR 2025 now calculates in more detail—not only how often we give, but also the value of the donation, its impact, and how it is documented.

According to the data, the average donation by Indonesians is 1.55 percent of their annual income. This figure is higher than the global average (1.04 percent), but still far below the spiritual standards we are familiar with: 2.5 percent zakat in Islam or 10 percent offerings in Christianity. This means that our potential for kindness is still much greater than what is currently apparent.

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Another interesting fact is that the majority of donations in Indonesia are still channeled through informal channels. Around 40 percent goes directly to individuals or families, 24 percent to mosques or religious institutions, and only 36 percent through official institutions. An IDEAS survey even shows that nearly 70 percent of people prefer to give directly to beneficiaries or places of worship. As a result, much of this generosity is not recorded in international data.

This is where the challenge and opportunity lie. The decline in ranking does not mean that our spirit of sharing has weakened; rather, it serves as an important wake-up call to make improvements. What needs to be improved is not people’s intention to give, but the ecosystem: how to make donations easier, more trustworthy, and more impactful.

The key lies in trust. Global data shows that countries whose people trust philanthropic institutions usually have high donation rates. In Indonesia itself, an IDEAS survey found that 83 percent of informal donors are actually willing to switch to official institutions as long as there is clear transparency and accountability.

What concrete steps can be taken?

● Strengthen the capacity of philanthropic institutions. Fund management must be more professional and deliver tangible benefits.

● Simplify donation channels. Don’t make it difficult for people to share.

● Educate the public. Help them understand that donating through official institutions can have a broader and longer-lasting impact.

● Government support. Regulations and incentives that ensure proper donation records without eliminating the cultural value of mutual cooperation.

Ultimately, the spirit of sharing among Indonesians never fades. It just needs a more solid platform. With a transparent and accountable philanthropy ecosystem, the kindness of Indonesians will be more visible, recognized, and truly have a real impact—both at home and on the world stage. (Dompet Dhuafa)

Text : Tira Mutiara (IDEAS Researcher)

Editor : IDEAS, Dhika