The government should not use the Corporate Social Responsibility (CSR) funds to finance its Indonesia Health Card, Family Welfare Card and Indonesia Smart Card programs as it is against the CSR rules, stated an academician.
“The funds for the Indonesia Health Card (KIS), Family Welfare Card (KKS) and Indonesia Smart Card (KIP) programs should be taken from the Partnership and Neighborhood Development Program (PKBL). It should not be taken from the CSR program,” Maria R Nindita Rayati, the director of the MM CSR of the University of Trisakti, said here on Thursday.
She noted the CSR was related to a company’s internal stakeholders such as its employees, the factory, the environment, and the community.
Ideally, the CSR must follow the ISO 26000 whose scope covers organization governance, consumer issues, fair business practices, environmental aspects and the involvement and development of communities.
She remarked that for financing the three types of cards, the government should use the PKBL funds, which are allocated from a part of the profits earned by state-owned companies (BUMN) as stipulated in Government Regulation No.5/MBU/2007 on the partnership program between the BUMN and small scale businesses and the neighborhood development program.
“The BUMN must allocate four percent of their profit, of which two per cent are for the partnership program and the other two percent are for the neighborhood development program,” she added.
Maria R. Nindita Radyati observed that the government as a shareholder had the right to use some of the profits for the welfare of the people. Hence, the PKBL should be used for improving the welfare of the people.
“Therefore, the people have the right to hold the government accountable for the use of the PKBL funds for the KIS, KIP and KKS programs,” she added.
Maria said it would be better for the government to use the neighborhood development funds for the card programs. This is because the neighborhood development program is related to health, education, and the peoples prosperity while the partnership program funds are to be used for improving the capacity of small-scale businesses.
In the meantime, constitutional law expert Yusril Ihza Mahendra has said in a written statement that the BUMN companies have an obligation to allocate their CSR funds and fulfill their responsibility to the communities nearby.
If the government is willing to take the CSR, then the law on state budget, particularly with regard to the one that concerns the sources of state revenue and its allocation, must first be amended.
“The CSR fund is funds allocated from the profits of companies, including the BUMNs, as a compensation to the people in the surrounding areas who might be affected by the companies activities,” he said.
So, Yusril noted, if the government uses the CSR to fund its card programs, it might create a problem.
Yusril pointed out that the CSR fund is directly managed by firms in the interest of the local people. The funds also belong to the companies concerned.
The Joko Widodo-Jusuf Kalla government has decided to use the CSR funds to finance its KIS, KIP and KKS programs.
It will take the step because the issuance of the cards will need funds.
