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My opinion about CSR public policy in Indonesia on this paper applies three dimensional

approaches of CSR public policy: (1) CSR context dimension, (2) CSR content dimension and
CSR rationales dimension. Various corporation activities bring a real impact on the quality of
human life both on individuals, communities, and entire life. Deforestation, global warming,
environmental pollution, poverty, ignorance, disease, and access to life and clean water, ongoing
until finally came the concept of corporate social responsibility (CSR). CSR emphasizes that
corporate responsibility is no longer for profit factor only, but also social and environmental
responsibility. The idea, reliance on the financial health does not guarantee the company will
grow and sustainable. CSR programs can be done through the empowerment of local
communities based on their real needs of the dialogue communicate with communities,
governments, businesses, communities and academia. This paper also aims to link between the
empirical approaches of CSR policies and the literature on the new governance in terms of policy
instrument and new form of regulation, to be closer to public policy studies. This paper argues
that CSR public policy in Indonesia is shaped by various aspects such as: political, economic,
social, and environmental context. It found that all of those aspects have been shaped CSR
related policy during Indonesian presidential eras. Meanwhile, this study found that the key
governments motive behind CSR legislation in Indonesia lies on the facts that many
corporations in Indonesia are less-consider in managing the environment and social responsibly
(social motives). The evidence has shown the massive number of corporations operate in
Indonesia but dedicated very less efforts, contribution and attention to the social and
environment. Moreover, the massive pressure from local and international NGOs as well as the
other social organization has pushed the government to respond these by adopting the CSR issue
into the draft of legislation (political motives).
CSR public policy in Indonesia is shaped by various aspects such as: political, economic, social,
and environmental context. This finding confirms the argument reveals that starting from 2000
there were many CSR movements in Indonesia which were promoted by government, NonGovernmental Organization, communities and business as well as the international organization.
The important step from government (the Minister for Economy, Finance and Industry) was the
establishment of the National Committee on Governance Policy, under supervised by World
Bank in 2000. This National Committee is responsible for developing codes which aims to
encourage the companies in Indonesia to act under principle of good corporate citizenship and to
be more social responsibility. The social contexts of this period are various examples of the
businesss malpractice. The political context of this era is the enactment of the Law No. 25/2007
on the Investment and the Law No. 40/2007 on the Limited Liability Company. The enactment of
these Laws increases the number of attentions and discussion among businesses, academics and
other CSR practitioners. Meanwhile the economic context is the lack of governments ability in
term of development funding. Hence, the government invites the participation from business
sector to provide several infrastructures and public facilities. The key motive behind CSR
legislation lies on the facts that there are many multinational corporations which operate in
Indonesia but do not consider in managing the environment responsibly (social motives).
Evidence has shown the massive number of companies operated in Indonesia but dedicated very
less efforts, contribution and attention to the environment. CSR activities conducted by
companies have been regarded by Indonesian government as a complement for the existing
regulation that related to CSR (political motives). Government also pointed out that CSR can
help Government to achieve other government policys goal, in particular that related to the
social and economic. development (political motive). The view from government that companies

can act as the partners in tackling various natural disasters in many regions, can be regarded as
environmental motives for government. Meanwhile, the lack of government in funding some
projects in term of infrastructures building and public facilities can be viewed as the economic
motives.

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