House endorses final bill on foundations<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The House of Representatives endorsed on Tuesday the amendment
\nbill to Law No. 16\/2001 on Foundations, but no changes were
\nestablished regarding the authority of the Supreme Audit Agency
\n(BPK) in auditing financial reports of foundations.<\/p>\n
Legislator M. Akil Mochtar, who chairs the House special
\ncommittee deliberating the bill, said on Tuesday that the changes
\nto the existing law were essential for the development in the
\nsector of education and health, which were the common scope of
\nfoundations.<\/p>\n
The amendment bill was submitted by the government to the
\nHouse on March 6 last year.<\/p>\n
Basically, only three significant changes were made. The
\nchanges concern the remuneration of foundation executives, the
\ntime line within which a foundation must obtain body corporate
\nstatus, and the tenure of foundation management.<\/p>\n
\"The amendment bill now allows only full-time executives of
\nfoundations and those who are neither founders nor affiliated to
\nthe founders, patrons or trustees to receive monthly
\nremuneration. The amount is determined by the patrons and depends
\non the capability of the foundations,\" said Akil.<\/p>\n
The existing law says that the assets of a foundation, whether
\nin the form of cash, property or other types of assets, cannot be
\ntransferred either directly or indirectly to its patrons,
\nexecutives or trustees as they are supposed to devote their labor
\nto the foundation voluntarily.<\/p>\n
The amendment bill also provides in details the time line
\nwithin which a foundation must obtain body corporate status,
\nwhich is not clear under the existing law.<\/p>\n
According to the bill, a foundation must now apply for body
\ncorporate status to the minister (of justice) no later than 10
\ndays after the establishment of the foundation.<\/p>\n
\"The minister must then seek advice from related institutions
\nwithin seven days. Final approval or rejection must be bestowed
\nnot later than 30 days after the submission of the application,\"
\nAkil said.<\/p>\n
Unlike in the current law, the amendment bill now imposes
\ncharges for the notarial document, the amount of which will be
\ndetermined by a government decree.<\/p>\n
However, no changes were made regarding the authority of the
\nBPK to audit financial reports of foundations.<\/p>\n
The amendment bill keeps the requirement for foundations whose
\nassets are valued at Rp 20 billion (US$2.15 million) or more, or
\nwhich receive Rp 500 million or more in donations from the
\ngovernment or foreign institutions within one fiscal year, to
\nhave their accounts audited by public accountants and to publish
\ntheir accounts in at least one Indonesian newspaper.<\/p>\n
The BPK has repetitively demanded to the government that the
\nagency should be entitled to such an authority, given that most
\nfoundations are units of state institutions and operate with
\nstate funds.<\/p>\n
\"Foundations here are just the receiver of the government's
\naid, so the BPK has no right to audit how the aid is used. The
\nBPK audits government institutions that give the aid. Besides,
\nthe government never forwarded the BPK's demand to us,\" Akil told
\nThe Jakarta Post.<\/p>\n
The amendment bill also says that all foundations that have
\nbeen registered with the court or have had their establishment
\nrecorded by the government must bring themselves into line with
\nthe amended law within three years.<\/p>\n
After the endorsement on Tuesday, the bill will later be
\nhanded to the president to be signed and legalized as a new law
\nreplacing the existing one.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/house-endorses-final-bill-on-foundations-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
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