Developing Crowdfunding-Based Financing Scheme to Increase Potential of Micro, Small, and Medium Business in Urban Green Space

Abstract

Micro, Small, and Medium Business (MSMEs) are vital to the Indonesian economic development, and the government is focusing on this sector for post-pandemic recovery. There is an emphasis on infrastructure such as urban green spaces, or Ruang Terbuka Hijau (RTH). RTHs have untapped potential as centers for agricultural and processing MSMEs. However, these businesses often face financing challenges, prompting the exploration of alternative scheme like crowdfunding. Therefore, this study aimed to (1) explore how RTH lands can be leveraged for local economic activities, and (2) devise a public fund-based crowdfunding financing model. Using RTH Kalijodo in Jakarta as a case study, the study included literature reviews, benchmarking, fieldwork, and Life Cycle Cost (LCC) analysis. The results show the need for the development of vertical hydroponics, tilapia farming, and tilapia fillet processing business in RTH Kalijodo. Financial analyses, including IRR calculations exceeding the 10.41% WACC, a positive NPV, and a payback period under five years, show the financial viability of these sectors.

Keywords

• crowdfunding
• life cycle cost
• msmes
• urban green space