Jakarta: At the closed meeting of the CorporateLaw Draft Working Group, which has ended Tuesday night, the working group has decided to agree upon the obligation of CSR only to companies who do business in the natural resources sector and its derivatives.
Obligation of CSR (Corporate Social Responsibility) will beaccounted for all companies related to natural resources including those who doprofit and have also gained losses (non-profit). The reason for this is thatthe cost of CSR is not taken from the net income and can be tax deductable.
The size of the cost in Article 74 of the Corporate Law Draft regarding the obligation of CSR which has been agreed upon only describes logical and ethical amount. Technical specifications including sanctions will be further described in a separate governmental decree.
Thus the opinion of Choirul Saleh (F-PKB), the Vice-chairman of the working group and Refrizal (F=PKS), working group member in Jakarta yesterday. �This Corporate Law will be a new chapter of doing business in Indonesia� he said.
Final agreement regarding the obligation status of CSR has been a result of a lobbying mechanism among the nine fractions in the working group which all agree upon the obligation of CSR to all corporations and government. Meanwhile, the Golkar Fraction has expressed their objection of this obligation and wants this status removed.
Legalized soon.
The working group meeting which has been forwarded to the special committee for a overview by the mini-fraction marks also as the end o fmaterial discussion regarding the material of the Corporate Law Draft. If thereis no change the draft will be legalized in a General Assembly Meeting of theHouse of Representatives (DPR), Friday April 20th, 2007
Choirul wishes that the public would understand besides the CSR that the new Corporate Law will be a new start for the reviving of the investment climate. New things is that it allows electronic registration and non-physical attendance at Annual Shareholders Meetings. In accordance to Chairul, the Chairman of the Indonesian Accountants Institute (IAI) Ahmad Hadibaroto which is also a member of the government specialists team on the draft law. He says that the new law will be a real effort to erase the numerous bureaucratic chain and the cost of investment.
�A lot of positive things are included in the Corporate Law. Including for us professionals in the accountancy sector, but it would be a shame if this CSR issue would hurt the effort. The business world doesn�t want this to become an obligation.�
Ahmad added that the obligatory status of CSR will not damage the investment climate but in these current situations it can be a hurdle which can discourage investors.
Refrizal said that the business world shouldn�t think negatively on the obligatory status of CSR. The House of Representatives (DPR) has appreciated the business world aspiration and responded positively.
�Results of the Special Team which has been studied upon by the Special Committee is something seldom seen in Indonesia.�
