One day '€” maybe a library at St. Yohanes - JP/Duncan Graham

The corporate social responsibility (CSR) system, where companies pay for community services, can be thinly disguised advertising.

Users of a small recreation park in Malang promoting good health are left in no doubt that a tobacco company has funded the equipment.

In 2012, the national government enacted a law requiring companies that manage or use natural resources to meet their social and environmental responsibilities. The original legislation applied to all corporations, but strong objections from business whittled implementation down to extractive industries only.

Dwi Budi Santoso, vice director of Brawijaya University'€™s Development Economics and Society Study Center, agrees that the CSR system is unfair because it depends on a company'€™s location, size and interests as well as the skills and contacts of fundraisers.

'€œI was an advisor to a local government in East Java in its negotiations with a gold-mining company,'€ he said.

'€œWe wanted CSR to be built into the agreement but the company refused because it would have diluted profits. So the permit was refused.

'€œCompanies can play favorites with CSR, and it'€™s difficult to enforce. There'€™s not much trust between government and business and there'€™s a lack of accurate data. The whole tax system in Indonesia needs to be reformed to make sure the disadvantaged who need funds get state support wherever they are.'€

'€” JP/Duncan Graham

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