Legal Review of Donation-Based Crowdfunding Arrangements in Indonesia

Wandi Laiya

Abstract


Online fundraising through donation-based crowdfunding has grown rapidly in Indonesia, but the misappropriation of donations by the Aksi Cepat Tanggap foundation exposed the weakness of the governing rules. This article examines the legal arrangements for the donation-based crowdfunding system under Indonesian positive law and the legal responsibility of online fundraisers operating that system. The study uses normative legal research with a statutory approach; legal materials were collected through documentary study of legislation, journals and books and were analysed qualitatively. The study finds that Indonesia already has regulatory instruments for the collection of donations, namely Law Number 9 of 1961, Government Regulation Number 29 of 1980 and Regulation of the Minister of Social Affairs Number 11 of 2015, but that these instruments regulate licensing and administration only and do not fully guarantee legal protection for donors, because the form and mechanism of enforcement against the suspected misuse of donated funds remain unclear. Legal responsibility currently extends no further than the obligation of foundations to submit audited annual financial statements.

Keywords


Crowdfunding; Donation-Based Crowdfunding; Legal Protection; Legal Responsibility; Online Fundraising.

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DOI: https://doi.org/10.33756/eslaj.v8i1.18159

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