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Indonesia slips to 21st place among world's most generous countries

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Tempo - August 2, 2025

Adil Al Hasan, Jakarta – The 2025 World Giving Report (WGR) has ranked Nigeria as the most generous country globally with an average donation of 2.83 percent of per capita income. Meanwhile, Indonesia has dropped from first place to 21st out of 101 surveyed countries.

Despite no longer being at the top, the 2025 WGR notes that Indonesia has a strong generosity profile with an average donation of 1.55 percent of income, exceeding the global average of 1.04 percent. This figure also surpasses neighboring countries in Southeast Asia, such as Malaysia, Singapore, and Thailand.

Donations in Indonesia are generally channeled directly to individuals in need, charitable organizations, and religious organizations. Indonesians tend to donate to 3-4 different purposes, with a priority on poverty alleviation, child and adolescent protection, and humanitarian aid.

The 2025 WGR also shows that developing countries, especially in Africa, dominate the list of the most generous countries. Five of the top 10 countries are from this continent, including Nigeria, Egypt (2.45 percent), China (2.19 percent), Ghana (2.19 percent), and Kenya (2.13 percent).

Hamid Abidin, a Philanthropy researcher from the Public Interest Research and Advocacy Center (PIRAC), considers Indonesia's decline in ranking as reasonable. He explains that the WGR uses a new, more detailed, and inclusive methodology. This methodology includes measuring the value of donations relative to income and the diversity of giving channels.

"This approach provides a deeper understanding compared to the World Giving Index (WGI), which relies solely on the frequency of giving activities," said Hamid in a written statement on Saturday, August 2, 2025.

According to Hamid, this change in methodology affects the positions of previously dominant countries in the WGI. Although Indonesia remains generous globally, its ranking has been surpassed by countries with a larger proportion of donations, such as Nigeria, Egypt, and China.

He emphasizes the trust in charitable institutions and social organizations as the key to building a strong culture of generosity. "The level of participation and the value of community donations are much higher if they believe that charitable institutions in their country are trustworthy and play an important role in social life," he said.

This is reflected in the findings of the 2025 WGR, where countries with high trust in philanthropic institutions in Africa and Asia show higher donation rates. Globally, the average score for the importance of charitable institutions is 10.98 out of 15, while the level of trust in these institutions is at 9.22.

"This level of trust plays a dual role. It not only encourages financial contributions but also supports voluntary engagement and advocacy that can sustain the philanthropy sector," said Hamid.

Hamid also highlights the importance of government policy support in strengthening the philanthropy ecosystem. He mentions that incentive policies, public campaigns, and regulations that facilitate charitable activities can increase participation and the amount of community donations. On the other hand, this support also encourages a more strategic and sustainable sharing culture.

According to him, the 2025 WGR shows that in 42 countries where the government actively promotes philanthropic activities, the average community donations are 1.7 times higher compared to countries without similar support.

Hamid believes that Indonesia has the potential to become a philanthropic leader in Southeast Asia if policy support and the capacity of charitable institutions continue to be enhanced. "The culture of generosity in Indonesia is already strong due to enriched religious and social motivations. Unfortunately, many philanthropy-related regulations are outdated, restrictive, and do not provide adequate incentives," he said.

He cited Law Number 9 of 1961 regarding the Collection of Money or Goods (PUB), which has not been revised and still serves as the main reference. Additionally, Indonesia's tax incentive policies for donations lag behind those of other countries, including those in the Southeast Asian region.

"Indonesia can be an inspirational example of how a developing country combines social traditions and modernization to build sustainable generosity. However, this potential will only be optimal if PUB regulations are revised and tax incentives are expanded," he said.

The 2025 WGR is an expansion of the World Giving Index, which is regularly released by the Charities Aid Foundation (CAF). This report is designed to provide a more comprehensive and inclusive overview of global generosity. The research was conducted in 101 countries through public surveys conducted directly, online, and over the phone regarding charitable activities throughout 2024. In Indonesia, the survey was conducted in cooperation with the Indonesian Philanthropy Association.

Unlike the WGI, the 2025 WGR explicitly measures three donation channels: direct donations to individuals/families, donations to charitable organizations or social organizations, and donations to religious institutions. The survey also includes information on income and donation amounts to calculate the proportion of donated income. Other aspects analyzed include donation motivation and perceptions of the role of social institutions and the government.

Globally, the report notes that nearly two-thirds of the world's population (about 64 percent) made monetary donations throughout 2024. About 40 percent of the donations were channeled directly to individuals or families, 36 percent through charitable organizations, and 24 percent to religious institutions or activities.

Hamid notes that this data shows that the global community still heavily relies on direct aid as a form of solidarity, although philanthropic institutions continue to play a vital role. He adds that the average proportion of income donated globally is 1.04 percent, with significant variations between regions. "Africa is the most generous continent with an average donation of 1.54 percent of income, while Europe recorded the lowest figure at 0.64 percent," he said.

The dominant motivation for donations globally is concern for social issues and the desire for change (65 percent). About 31 percent of respondents mentioned moral obligation, and 29 percent donated due to religious reasons. Religiously motivated donors tend to give twice as much and donate to more social causes.

For volunteer activities, about 26 percent of global respondents were involved in volunteer activities throughout 2024. The average time donated was 9 hours per person, with African citizens recording the highest at 14 hours and 30 minutes, and the lowest in Europe at 6 hours and 30 minutes.

PIRAC is an independent nonprofit organization that provides research, training, consultation, advocacy, and facilitation services in the field of philanthropy, strengthening civil society organizations and cross-sector partnerships in Indonesia.

Source: https://en.tempo.co/read/2035318/indonesia-slips-to-21st-place-among-worlds-most-generous-countrie

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