Government Prepares CSR Legal Basis
Monday, 04 June, 2007 | 13:19 WIB

Tempo Interactive, Jakarta: The government will create a legal basis for matters related to corporate social responsibility (CRS).

According to Social Affairs Minister Bachtiar Chamsyah, there is a large possibility that the legal basis will be prepared this year.

“We will discuss it with many parties this June,” he told Tempo last weekend.

Bachtiar acknowledged that he did not yet know the form of legal basis that would be made.

It may be a decree or a government regulation.

What is clear, he said, is that the legal base will stipulate companies’ social responsibility to community, especially the community where the company is located.

According to Bachtiar, the matters that can be stipulated include profit sharing for the community.

However, the government cannot yet determine from where these profits would be taken.

“It could be so much percent of net profit. So then dividend sharing comes next,” said Bachtiar.

CSR is needed to help overcome social matters around the company, for instance poverty, unemployment or the environment.

“It's been three years since the Social Affairs Department socialized CSR. We hope that this year it can be ongoing,” said Bachtiar.

On a separate occasion, President Susilo Bambang Yudhoyono asked companies to spare some of their funds for CSR programs.

The request was conveyed on Saturday (2/6) at the State Palace, Jakarta, during a dialog with 500 teachers who have received training from PT Telkom and Republika.

PT Telkom's Managing Director, Rinaldi Firmansyah, said that the Teacher Training and Education program class I, from April, 2006 to April, 2007, was a part of Telkom’s CSR initiative in order to advance motivation and training skills to teachers.

Pramono and Sutarto
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