The rapid progress of information technology has greatly enhanced public fundraising via donation-based crowdfunding platforms that use social media and digital channels. This innovation expands public access and fosters community involvement in social initiatives, yet it functions within a framework of legal ambiguity due to the lack of specific regulations governing the mechanisms, oversight, and accountability of online donation activities in Indonesia. This study seeks to examine the operational procedures of donation-based crowdfunding in Indonesia, identify regulatory deficiencies, and provide legislative remedies to enhance protection for contributors, platform operators, and recipients. This study utilizes a qualitative normative research technique, using legislative and conceptual methods, to analyze existing legislation and various instances of purported donation fund misappropriation. Research reveals that existing regulations, including Law No. 9 of 1961, Government Regulation No. 29 of 1980, and Minister of Social Affairs Regulation No. 8 of 2021, inadequately address the contemporary realities and risks of the digital donation landscape, leading to transparency deficiencies, opportunities for fraud, and diminished legal accountability. This thesis asserts that legislative change, enhanced supervisory mechanisms, and extensive legal literacy initiatives are essential to guarantee that donation-based crowdfunding functions in a reliable, responsible, and sustainable way within Indonesian society.
Muli et al. (Thu,) studied this question.