viii
7.3.
The Stagnation of Mandatory Corporate Social Responsibility in
Indonesia ....................................................................................................................
282
7.4.
Partnership and Environmental Development Programme (PKBL) .........................
288
7.5.
Overview of Corporate Social Responsibility Manual on Environment in
Indonesia ....................................................................................................................
289
7.6.
Tax Reduction Policy for Mandatory CSR in Indonesia ...........................................
307
7.7.
Conclusion .................................................................................................................
323
CHAPTER EIGHT: CONCLUSION AND RECOMMENDATION
8.1. Conclusion .................................................................................................................
325
8.2. Recommendation .......................................................................................................
330
8.2.1. Recommendation One; Philosophical Rationale Behind The
Enactment of Mandatory Corporate Social Responsibility Legal
Provision ........................................................................................................
332
8.2.2. Recommendation
Two;
Mandatory
Corporate
Social
Responsibility Laws, Regulations, Guidelines and Policies in
Indonesia ........................................................................................................
333
8.2.3. Recommendation
Three;
Mandatory
Corporate
Social
Responsibility Surveillance Body in Indonesia .............................................
334
8.2.4. Recommendation Four; Indonesia’s Mandatory Corporate Social
Responsibility Manual ...................................................................................
335
8.3. Proposed Further Research ........................................................................................
340
ix
List of Figures
No
Figure
Page
1
Figure 1.1 Correlations between Legal Culture and Business Ethics
122
2
Figure 1.2 Policy Evolution on Corporate Social Responsibility
129
3
Figure 1.3 Corporate Social Responsibility Cycles in Indonesia
174
x
List of Abbreviations
CSR
: Corporate Social Responsibility
KADIN
:
Indonesia Chamber of Commerce and Industry
IWAPI
: Indonesian Business Women Association
HIPMI
: Indonesian Businessmen Association
BPK
: Supreme Auditor Agency
BPKP
: Financial and Development Auditor Agency
BKPM
: Indonesian Investment Coordination Board
TJSL
:
Tanggung
Jawab
Sosial
dan
Lingkungan/Corporate
Environmental and Social Responsibility
PKBL
:
Program Kemitraan dan Bina Lingkungan (Partnership and
Community
Development Program)
FDI
: Foreign Direct Investment
PT
:
Perseroan Terbatas/Limited Company
SOE
: State Owned Enterprise
BAPEPAM-LK : Badan Pengawas Pasar Modal dan Lembaga Keuangan/Indonesia
Financial Institution and Stock Exchange Supervisory Body
OECD
: Organization for Economic and Cooperation Development
ISO
: International Certification Organization
DPR
: Dewan Perwakilan Rakyat/The People’s Representative Council
DPRD
: Dewan Perwakilan Rakyat Daerah/Regional Peoples’s
House of Representative
UDHR
: Universal Declaration of Human Rights
UNDRIP
: United Nations Declaration on the Rights of Indigenous Peoples
REDD
: Reducing Emission from Deforestation and Degradation