CIIP was pleased to partner with Instellar Impact to host Impact In Action (Singapore Edition) at Temasek Shophouse, bringing together corporate foundations, impact investors and ecosystem builders working to advance financing for micro, small and medium enterprises (MSMEs) in Southeast Asia.
The dialogue explored what it takes to deploy capital more effectively to support and scale impactful MSMEs, particularly in Indonesia.
Romy Cahyadi, CEO of Instellar Impact, shared data-driven perspectives on Indonesia’s social enterprise landscape, the state of catalytic finance, and emerging sectors where catalytic capital could play a greater role.
Sue-Ann Huang of CIIP shared insights from CIIP’s study on Supply Chain Sustainability in Southeast Asia, including how MSMEs can be better supported through an ecosystem approach to move from ESG awareness to practical sustainability action.
💡Several key themes emerged:
⭐️ Catalytic finance is gaining traction, but screening remains a challenge
Blended and catalytic finance models can provide more flexible capital for early-stage social enterprises. However, many enterprises may lack the track record, data and reporting systems typically required by funders.
⭐️ Capital deployment is becoming more nuanced
Funders are experimenting with instruments such as collateral-free loans, blended facilities and patient capital. The ability to innovate, however, depends on the source of funding, which shapes risk appetite, ticket size, currency exposure and repayment terms.
⭐️ The ecosystem is still learning what works
For early-stage social enterprises, standard financial metrics may not always be available. Funders are therefore considering alternative indicators such as founder motivation, mission alignment, participation in government-supported programmes and enterprise readiness.
⭐️ Funders can support capability-building
Many early-stage enterprises have strong impact potential but limited experience articulating a clear theory of change. Funders who help enterprises sharpen their impact narrative, rather than screen on presentation alone, may access a broader and stronger pipeline.
⭐️ Collaboration and shared infrastructure matter
Shared impact frameworks, practical lessons and case examples can help funders replicate effective catalytic finance models, improve consistency, and build greater transparency across the ecosystem.
