Currently the draft bill on Corporate Social Responsibility (Draft Bill) is being discussed and formed by the House of Representatives. Currently Corporate Social Responsibility (CSR) are regulated by multiple regulations and the aim of the new regulation is to become the basis for the implementation of CSR by companies in Indonesia. In this column we will discuss the organization of CSR, CSR forums and CSR awards regulated in the Draft Bill.
The Draft Bill requires the implementation of CSR by all companies, both legal entities (such as PT or PT PMA) or non-legal entities (such as CVs of Firms) domiciled and conducting business in Indonesia in the fields related to natural resources or investment. The organization consists out of:
Companies that do not carry out CSR may be subjected to administrative sanctions in the form of written warning, restrictions on business activities, suspension of business activities, or revocation of the business license of the company.
The CSR Forum itself can be established in the Regency / City or in the Province, whose members are representatives of the Company and the operating costs are sourced from the Company’s contributions. The CSR Forum can hold regular meetings to:
The Regional Government will reward awards to companies that successfully implemented the CSR by meeting the following criteria:
The Draft Bill may be subject to changes as it is currently being discussed by the government.