Bill proposes salaries for foundation executives

Kurniawan Hari, The Jakarta Post, Jakarta

The House of Representatives and the government have completed drafting a bill to amend Law No. 16/2001 on foundations, which will allow foundation executives to be paid monthly salaries, wages or fees.

The amounts involved will depend on the financial capabilities of each foundation, the bill says.

Lawmaker M. Akil Mochtar, who chairs the House special committee deliberating the bill, said on Tuesday that both the House and the government had accommodated the demands of foundation executives, who had complained during previous hearings about a lack of certainty regarding their remuneration.

The existing law says that the assets of a foundation, whether in the form of cash, property or other types of assets, cannot be transferred either directly or indirectly to its patrons, executives or trustees as they are supposed to devote their labor to the foundation voluntarily.

The amendment bill says that only full-time executives and those who are neither founders nor affiliated to the founders, patrons or trustees will be entitled to be receive monthly remuneration.

Akil said the House would submit the bill to a plenary session of the House for endorsement on Sept. 7. The House passed the bill on the government's deposit guarantee scheme last week, and has still to complete the deliberation of six more bills before its five-year term ends on Sept. 30,

The foundations law amendment bill was submitted by the government on March 6 last year.

"After more than one year, we will now finally be able to finish our deliberations," Akil said.

The bill also changes the timeline within which a foundation must obtain body corporate status, which is not clearly provided for under the existing law.

According to the bill, a foundation must now apply for body corporate status to the minister (of justice) not later than 10 days after the establishment of the foundation. The minister must then seek the advice of related institutions within seven days.

Final approval or rejection must be given not later than 30 days after the application has been submitted.

The bill maintains the requirement contained in the current law for foundations whose assets are valued at Rp 20 billion or more, or which receive Rp 500 million or more in donations from the government or foreign institutions, to have their accounts audited and to publish their accounts in at least one Indonesian newspaper.

All foundations that have been registered with the court or had their establishment gazetted by the government must bring themselves into line with the amended law within three years, the bill says.

Existing foundations that fail to meet the requirements will be dissolved.