Indonesian Political, Business & Finance News

Foundation law needs improving

Foundation law needs improving

From Media Indonesia

As a social organization, after studying Law No.16/2001 on foundations, we would like to propose that a government regulation (PP) specifying its implementation be promptly issued. Based on our scrutiny, the law contains several "illogical" articles. Foundation managers, for instance, get no pay.

Meanwhile, there are no laws yet on children's protection and social workers, forcing the managers to rack their brains and expend their energy to aid the weak. They should not be like legislators, who are only "talking" while receiving salaries.

Foundations of all sizes are generalized under the law in their licensing requirements. Its PP should therefore stipulate that the acquisition of license documents for social, educational, humanitarian and religious foundations is free of charge, because their activities support government efforts. Foundation personnel also deserve monthly salaries in appreciation of their performance as social workers. Large foundations should assist small ones instead of ruining them.

To this end, we recommend three categories of licensing of social foundations:

1. At the national level, at least Rp 100,000,000 worth of assets of foundation executives are separated, with branches covering two thirds of provinces, besides a notarial deed, court registration, a governor's recommendation and a license from the Ministry of Justice announced in the state gazette.

2. At the provincial level, at least Rp 10,000,000 worth of assets of foundation executives are separated, with branches covering two thirds of regencies/cities, besides a notarial deed, court registration, a regent's/mayor's recommendation and a license from the Ministry of Justice announced in the state gazette.

3. At the regency/municipal level, at least Rp 5,000,000 worth of assets of foundation executives are separated, with a notarial deed, court registration, a district chief's recommendation and a license announced in the state gazette.

The three categories should apply to foundations that will be established by private circles.

ROBERTO BANGUN

Jakarta

View JSON | Print