VIVAnews - Indonesian Chamber of Commerce (Kadin) calls on the Constitutional Court to review article 74 of Law No.40/2007 on Limited Liability Company regulating corporate social responsibility (CSR).
The Chamber of Commerce argued that the article is viewed as giving way to manipulations. As a result, in addition to burdening business community, it will cause entrepreneurs to be uncreative in initiating their businesses.
The Chamber evaluated that CSR, which is a part of good corporate governance principle, is more concerned to morality instead of legal issues. "Meanwhile corporate responsibility has been comprehensively enacted in the related regulation," said the Chamber's Deputy Head Hariyadi B Sukamdani, Friday, Nov 28.
According to Hariyadi, the article causes uncertainty, discrimination as well as inefficiency and unfairness of business climate. The intended uncertainty is in line with CSR's nature: voluntary. The law is instead mandatory and compulsing. In addition, it also triggers misinterpretation and helps issue levy-prone regional regulations.
John Pieter Nazar, legal advisor of the Indonesian Chamber of Commerce, Indonesian Young Entrepreneurs Association (HIPMI) and Indonesian Business Women's Association (IWAPI) believes that the article is discriminative because it differs between the companies obeying the law and those that do not. "It should not only be applied to companies. It should be everyone's responsibility," said John.
The implemented regulation then makes soical responsibility a company's responsibility in terms of providing funds. In fact, said Hariyadi, many regions are preparing regulations to improve the regulation.
"With Article 74, it is as though all parties are allowed to request aid from companies," said Hariyadi.
Translated by: Bonardo Maulana W
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