Non-Profit Institutions as a Complementary to the Economy

The term non-profit institution is actually not foreign to our ears. In the current era of democratic openness, various organizations that carry out a number of missions such as issues of humanity, the environment, human rights and the like are increasingly existent. Among those known to the public, such as Muhammadiyah, Nahdlatul Ulama, Aksi Cepat Tanggap, Kitabisa.com, as well as institutions that have an interest in the environment such as the Indonesian Forum for the Environment (WALHI). History records that since the pre-independence era, various non-profit institutions have emerged in Indonesia. The Budi Oetomo Association (1908), Sarekat Islam (1912), and Taman Siswa (1922) were non-profit organizations formed to develop human resources at that time. Non-profit organizations or commonly known as non-profit organizations in Indonesia have an important role as a partner of the government in overcoming various problems such as social humanity, law enforcement, poverty alleviation, and environmental conservation. A non-profit organization is formed by an association of individuals to work together to achieve predetermined goals without the intention of seeking profit or profit. Each institution was established with different goals and objectives. Non-profit organizations can take the form of community organizations, non-governmental organizations (NGOs), associations, associations, foundations, and political parties. In its classification, non-profit institutions that are not controlled by the government and are not involved in market production are known as Non-Profit Institutions that Serve Households (LNPRT). This means that in providing services, the institution does not intend to benefit economically and there is no intervention from the government in terms of management and administration. LNPRT activities in providing services to the community are included as economic activities (SNA 2008). So that the Central Statistics Agency (BPS) also includes the expenditure component of LNPRT as economic actors who play a role in the preparation of Gross Domestic Product (GDP) and Gross Regional Domestic Product (GRDP) according to expenditure. In addition, there are other components that make up GDP/GDP by expenditure, such as household consumption, government consumption, Gross Fixed Capital Formation, and net exports.

BPS has a number of surveys to obtain information on the activities of LNPRT in quarterly and annual periods. The information collected is the basis for calculating GDP/GRDP according to expenditures released by BPS. Nationally, the role of LNPRT in the economy ranges from 1-2 percent. Although its role is not as large as other components, the services provided by LNPRT contribute to Indonesia's economic cake. Apart from the percentage of its role in GDP/GRDP, LNPRT provides important assistance to communities. Community aspirations can be channeled through the organization. In the case of an emergency, the distribution of goods and services reaches the people in need quickly. Without realizing it, most of us participate as donors of LNPRT funds, such as donating money at places of worship and digital fundraising by LNPRT. Here the LNPRT becomes a bridge between donors and service recipients. Even in some developed countries, LNPRT is able to create jobs and absorb workers of productive age. LNPRT is not as big as a profit-oriented institution. However, its presence has a positive impact on the order of life and complements the economy.