Evaluating Current Stage of Equity Crowdfunding Adoption in Indonesia: An Exploratory Study

Abstract

Purpose: This study investigates the operational processes, oversight practices, investor incentives and business impacts in the localization of equity crowdfunding in Indonesia through an exploratory case study of the LandX platform. Design/Methodology/Approach: Qualitative data was collected through interviews with 5 key personnel of LandX and document analysis of 8 internal materials related to operational processes and financial outcomes. Data underwent inductive thematic analysis. Findings: Findings reveal LandX conducts structured due diligence encompassing weighted financial and qualitative criteria that represent industry best practices, balanced by outcome uncertainties. Investor incentives span portfolio diversification to personal passions, requiring tailored communication and education to ensure informed participation. While complying strictly with regulations, LandX also demonstrates responsible self-governance through transparency and protections that exceed policy requirements. Qualitative indications point to accelerated issuer growth, but quantified impact data remains limited. Practical Implications: Results provide insights into prudent navigation required to advance equity crowdfunding in Indonesia through platform diligence and education, calibrated outcome expectations, updated regulations, and multi-stakeholder collaboration. Originality/Value: This pioneering study provides timely qualitative insights into equity crowdfunding localization dynamics in the under-examined context of Indonesia. Paper Type: Case Study

Keywords

• equity crowdfunding
• financial technology
• indonesia
• platform governance
• due diligence