ADAPTING TYPE OF SUPPORT USING CAPABILITY-BASED APPROACH AS STRATEGIC RESPONSE TO NON-PERFORMING LOANS OF RABO FOUNDATION PORTFOLIO IN INDONESIA

Abstract

This research explores how Rabo Foundation supports the growth of small and medium agribusinesses in Indonesia through its role as an impact investor. The study focuses on understanding the real challenges faced by these businesses and how their capabilities align with the support they receive. Using a capability assessment framework combined with an Importance-Performance Analysis (IPA), the study gathered insights from 32 clients across different agricultural sectors. The findings show that many businesses struggle in areas like long-term planning, managing supply chains, and financial decision-making—capabilities they themselves see as crucial. These areas fall under the “Concentrate Here” quadrant in the IPA, highlighting a gap between what matters most and what is currently working well. The research suggests that more tailored support—based on each business’s strengths and weaknesses—can help them become more resilient and successful. It also recommends applying this assessment tool when onboarding new clients to better match Rabo Foundation’s assistance with actual needs. Overall, this study is about how impact investing can go beyond just financing, and help businesses grow in a more meaningful and sustainable way.