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Corporate Social Responsibility in Indonesia: A Legal Persepective

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By Nicholas Mark


Corporate Social Responsibility (‘CSR’) involves the notion that companies owe duties, not only to their shareholders, but also to external stakeholders, including the wider community and the environment. Indonesia is the only country in the world that has decided to make CSR mandatory for certain types of companies. This thesis argues that the relevant provision is unclear, highlighting the difficulty in defining the evolving concept and business strategy of CSR in different contexts. The parliamentary debates and the problematic drafting process of the CSR provision demonstrate the often misguided political motivations for enacting the law. These include placating the community as a result of damage caused to surrounding communities by company operations, such as the 2006 Sidoarjo mud flow disaster. The Indonesian experience shows also that a more effective approach to dealing with CSR mandatorily might be through regulation of CSR-related activities, such as the existing community development obligations on state-owned companies. This thesis contends that despite its imperfections, the CSR law has increased awareness of CSR and has not yet overburdened companies or investors as initially feared.

Abstrak ini merupakan penelitian akhir (skripsi) dari seorang teman bernama Nicholas Peter Mark, mahasiswa University Of Sydney, yang melakukan penelitian mengenai CSR dalam persepektif hukum di Indonesia. Ada ketertarikan khusus Nick dalam melakukan penelitian ini dikaitkan dengan bencana lumpur lapindo (Sidoarjo). Semoga hasil penelitian ini menjadi penambah khasanah kajian mengenai CSR di Indonesia, salah satunya dalam persepektif hukum. Tentunya ada sudut pandang berbeda ketika riset ini dilakukan oleh mahasiswa University of Sydney dalam memetakan CSR di Indonesia. Jika tertarik dengan riset Nick, bisa berkorespondensi melalui: nmar6994@uni.sydney.edu.au***

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