T

he Korean Chamber of Commerce and Industry (Kocham) has signed a partnership with the Indonesian Employers Association (Apindo) to help Korean companies implement corporate social responsibility (CSR) initiatives in Indonesia.

The partnership was signed on the sidelines of a CSR forum held by the Korean Embassy, Apindo and the International Labor Organization (ILO) in Jakarta on Wednesday.

Apindo chairman Sofjan Wanandi said that with more 14,000 companies under the association and combined with Kocham members, the partnership had the potential to be a benchmark for CSR implementation in Indonesia.

Firms engaging in business activities related to natural resources exploitation are required by the 2007 Limited Liabilities Companies Law to conduct corporate social responsibility and environmental programs.

“Ideally, a company allocates a maximum 5 percent of its profit for CSR programs. In reality, the number varies from one company to another, depending on the amount of the profit,” Sofjan said.

Sofjan said the private sector in the country still needed to have a clear definition and guidelines regarding CSR despite an existing regulation, adding that there was a misconception among local administration officials concerning the purpose of CSR funds.

“These officials demand money from our members. CSR funds should benefit communities, not officials. So it is important for the government to clear this up,” he said.

Peter van Rooij, ILO Indonesia country director, said ILO and Apindo played a role in helping to promote dialogue between stakeholders, management and workers.

According to Korean Ambassador to Indonesia Kim Young-sun, about 1,500 Korean companies operate in Indonesia, employing more than 800,000 workers. South Korea is the fifth-largest investor in Indonesia, with cumulative investment of $1.2 billion last year. (tas)