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lthough admirable, giving back to the community is an optional gesture, but now it could be mandatory as the House of Representatives is deliberating a draft law on corporate social responsibility (CSR), pushing aside objections from business players.

House Commission VIII deputy chairman Sodik Mudjahid said on Tuesday that the bill, if passed into law, would be the first of its kind that would solely regulate and provide detailed guidelines for CSR practices.

“So far, CSR practices are partially regulated in a number of regulations, such as laws on state-owned enterprises and on cooperatives. We want something more integrated and to ensure that CSR practices can have a positive impact on both companies and the public,” he said.

Sodik said he hoped that the bill could be passed into law by September or October this year, saying that the deliberation would be relatively smooth as political tension had subsided.

The bill is set to contain stipulations on the ideal portion of CSR funds, taxation on CSR funds and schemes to carry out CSR programs, among others.

The bill is among several bills initiated by the House and the Regional Representatives Council (DPD) that has been included in the national legislation program for the 2015 to 2019 period.

A number of business players, meanwhile, have given the cold shoulder to the CSR law’s planned implementation.

Indonesian Employers Association (Apindo) chairman Hariyadi Sukamdani said his association argued that CSR should remain voluntary as part of a company’s contribution to society.

“CSR is voluntary by nature, which is the case everywhere else in the world. The program is performed if a company has fulfilled all of its other obligations,” he said, adding that current regulations already outlined the rules of CSR practices adequately.

Hariyadi conveyed that the bill, if passed into law, would discourage people from starting businesses as it would create an additional burden, as businesses are already subject to taxes and retributions.

Franciscus Welirang, a director at consumer goods giant PT Indofood Sukses Makmur, said, meanwhile, that he left the option open to the House, which he believed was much more competent in deciding what was right for the public.

“For companies, what will have our attention is the content [of the law], which should be able to deliver the CSR practices effectively,” he said.

Speaking in front of the House’s commission VIII, Franciscus said, however, that CSR was an “art” that required distinct methods from each company in its respective region.

Also, the practice should only be required if a company was already profitable, he went on.

CSR practices are currently regulated by a number of existing regulations, including the law on limited liability firms that requires companies operating in the natural resources sector to participate in environmental social responsibility.

Companies currently carry out their respective CSR programs on a voluntary basis without any minimum requirements on the amount of CSR funds.
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