Jakob Oetama, Jakarta
I gladly welcome the awareness and efforts made in creating ""Good Corporate Governance"". Under the Diplomacy Training Program -- a capacity building program for community advocates -- the following aspects are covered:
a. Awareness and knowledge of existing and emerging standards relevant to corporate conduct.
b. Practical information and skills training on how to hold a business accountable for its human rights responsibilities.
c. Lessons from the experiences of other advocates in the region.
The program is relevant in Indonesia, as the country is currently facing such issues. It is also tangible, as it is in line with current demands.
I have thought about these issues in relation to the current situation in the country.
Indonesia is experiencing reforms in the following four arenas:
1. The political arena
2. The social arena
3. The socio-economic arena
4. The socio-cultural arena
The political arena centers on changes to the political system and a swing in the culture of politics from autocracy to democracy.
The social arena concentrates on the development of civil society, while the socio-economic arena is aimed at building a framework for a social market economy.
The cultural arena has a double dimension: Culture in terms of art and in terms of cultural values, orientation and standing, and the application of these in developing the nation.
These four arenas are intertwined and create one platform to be implemented in order to achieve quality cohesion, progress, justice and welfare in both the private and public dimensions.
We are struggling to achieve this platform. There is no simple solution and there are many obstacles and challenges.
But here lies the heroic romanticism. We are all caught up in our own lives, occupations and callings.
So, what is the current socio-economic arena regarding businesses, and in particular, corporations?
This is the theme of today's dialogue. From the thoughts and struggles of our Founding Fathers, which were later incorporated in the 1945 Constitution, we can deduce that there are three parties we can rely on to reach our common goal of creating a safe, just and prosperous society.
These are the state, the private sector and cooperatives. In a social market economy, the role of the state must be constant and effective, and remain in line with its objectives in order to regulate an economy supported by the private sectors and cooperatives. Small, medium and large private enterprises are given a legitimate place in a free market.
Although not many, some companies have emerged and flourished to become corporations. This is why the theme of our discussion today is relevant. We are very familiar with the notion of good corporate governance. We are also intimate with the phrase ""black conglomerate"". We even tend to be trapped by the issue and have not been able to effectively overcome the problem in a responsible manner.
We welcome this seminar, which aims to overcome these issues in the context of economic reforms in the social market.
It directly relates to the pressing issues we are now facing.
First, we need to agree on a ""social market economy"" framework in the context of Indonesia and globalization.
Second, we need to eliminate public prejudice against corporations, and the popular public perception that big businesses are responsible for social injustices.
Third, we need to develop and implement good business sense and good corporate governance.
What problems are we facing in these areas?
1. Overcoming the ""legacy"" of the black conglomerates era.
2. Creating a series of laws and government regulations that will become a foundation and give corporations space to enable the implementation of ""good corporate governance"".
3. Creating a conducive climate and gaining public trust
4. The recognition of business players for their role and position, and for their commitments to achieve mutual prosperity -- and implementing them in their business practices.
As with the socio-political arena, the realization and development of ""good business and good corporate governance"" should be determined by the synergy of three parties: the business sector, society and the government. But the media should also play a role.
To play a proportional and effective role, the media needs to understand the following:
1. The economic world and its players, including the corporate world.
2. The philosophy of the framework, motivation and goals of business players in the context of Indonesia.
3. The circumstances under which business players work, the government, politics and the public.
4. Direct control based on existing factors is important. But it is also important to pay close attention to (and control) the macro and micro circumstances and their connection with the global economy and businesses.
The way in which the media plays its role is important. The media must be mindful of comprehensive case-by-case understanding and each media group needs to find its own style of presentation.
It is true that each media group has its own character, policies, style and target readers -- ""un journal c'est un monsieur"".
But it is because of the ""un journal c'est un monsieur"" that each media group needs to maintain its personal character in order to strengthen its role in society.
The writer is the CEO of Kompas daily/Gramedia Group.
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