Private vs state charity<\/p>\n
Barely two weeks into her job, Siti Hardijanti Rukmana has
\nplunged into her post as minister of social services doing what
\nshe is probably best known for: organizing a massive fund-raising
\ncampaign for charitable causes. She is entrusted with collecting
\nthe annual salaries of President Soeharto, Vice President B.J.
\nHabibie, the entire Seventh Development Cabinet, all 27
\nprovincial governors and first-echelon and other top government
\nofficials. She has also made a direct appeal to those in the
\nprivate sector to jump on the bandwagon.<\/p>\n
Hardijanti is preparing various programs to channel the money
\nshe is collecting to good use. The first of these, launched this
\nweek, is the distribution of free food to the needy, through
\nWarung Tegal (inexpensive food stalls run by people from the
\nCentral Java town of Tegal) in Jakarta and other major cities.<\/p>\n
In the past, the Ministry of Social Services has traditionally
\nbeen a low-profile, technical department whose main tasks were
\nrehabilitating and aiding socially deprived people and organizing
\ndisaster relief operations. Now, the ministry has suddenly become
\na high-profile government agency. This may be due to the call of
\ntime: the economic crisis has given greater cause for the
\nministry to be more proactive than in the past. But there is no
\ndoubt that the presence of Hardijanti -- the eldest daughter of
\nPresident Soeharto, a politician, a businesswoman and a charity
\nactivist -- at the helm has contributed to the added sparkle.<\/p>\n
While the government running its own charity movement is all
\nwell and good, even noble, we hope this will be an exception to
\nthe rule, say, until the economic crisis is over, if not before.
\nAt a time when many people are being deprived of their basic
\nneeds, the nation needs some symbolic gestures of solidarity from
\nthose who are better off. It is in this light that the campaign
\nshould be looked at.<\/p>\n
In the long run however, the official campaign to collect the
\nsalaries of highly paid executives, from both the private and
\npublic sectors, will divert funds that traditionally have gone to
\nprivately run charities. Many of these groups have long existed
\nto channel funds from donors to the needy. Most work quietly, as
\nall charity groups should, but their work is no less noble.
\nPrivate groups offer flexibility and work more effectively as
\nthey are not subject to bureaucratic constraints.<\/p>\n
A sustained nationwide fund-raising campaign on the scale
\nbeing run by the Ministry of Social Services could endanger the
\nexistence of these private groups. It could lead to unhealthy
\ncompetition between private charity and state charity for the
\nsame pool of funds. In such a situation, in the Indonesian
\ncontext, state charity will crowd out private charity.<\/p>\n
While the official campaign is voluntary, the state has been
\nknown to be forceful, even overzealous, in managing such programs
\nin the past. The recent "Love Rupiah" drive, for example, was
\ntwisted by some people into a campaign to paint those who did not
\nparticipate, for whatever reasons, as unpatriotic.<\/p>\n
Most people are charitable by nature. They cannot bear to see
\nfellow human beings suffer. This is why many charity
\norganizations have flourished in Indonesia. Without government
\nprodding, many people already willingly donate part of their
\nspare wealth to charitable causes, either through religious and
\ncharitable organizations or directly to beggars and street
\ncollectors. While many may not have any qualms about donating
\nmoney to government-run charitable causes, this begs the
\nquestion: whatever happens to the money people pay in income
\ntaxes and sales taxes?<\/p>\n
If the government intends to raise more money from the public,
\nfor charity or other purposes, it should do so through taxes, and
\nnot by setting up a separate fund. The objection to a separate
\nfund is clear: there is a high likelihood of poor administration
\nand accountability. The scandal over the use of public money to
\nfinance last year's SEA Games should serve as a warning that
\ngovernment accountability for extra-budget funds is sorely
\nlacking in this country.<\/p>\n
Without intending to diminish the noble intentions of the
\nongoing official campaign, we feel Minister Hardijanti would be
\nbetter off focusing her energy on helping and coordinating the
\nwork of the existing privately run charity organizations. There
\nare many others deserving our charity in the present crisis and
\nthe private groups are often better equipped to act. Starving
\nIrian Jaya villagers, for example, are as much in need of our
\nhelping hand, if not more, than the urban poor that the official
\nfree food campaign is targeting.<\/p>\n
Given her immense experience in philanthropic activities in
\nthe past, Minister Hardijanti no doubt knows where and how the
\ngovernment can assist these groups. As a former activist herself,
\nher voice in the cabinet will carry weight in lobbying for tax
\nbreaks for donors and charitable organizations.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/private-vs-state-charity-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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