'RI need more philanthropy'

'RI need more philanthropy'

The Jakarta Post, Jakarta

Activists working to promote human welfare say that
if philanthropic organizations received more funds and support
the nation would advance more rapidly.

"The money and energy channeled through philanthropic
activities could help society build itself," Public Interest
Research Advocacy Center (PIRAC) executive director Zaim Saidi
said on Friday.

The latest survey by PIRAC -- one of a few NGOs focusing on
research and advocacy for individual as well as corporate
philanthropists -- shows that 99.8 percent of people living in
urban areas set aside funds for charity.

The data was collected from 2,500 respondents in 11 Indonesian
cities, such as Jakarta, Surabaya, Medan, Padang and Makassar.

"The average amount of donations given directly to individuals
or through organizations has increased significantly since 2000,"
he said.

In 2000, the annual average amount of donations was Rp 804,000
(US$86.45) per person with a monthly income of more than Rp 1.5
million. The figure, Zaim said, increased to Rp 1.4 million in
2004, of which Rp 560,000 was channeled through organizations.

Meanwhile, the lowest income class in the survey, with monthly
earnings of Rp 750,000, donated an average of Rp 162,000 a year
in 2000. The amount jumped to Rp 511,000 in 2004, with Rp 77,500
channeled through social institutions.

"Such an amount, multiplied by the number of people living in
urban areas alone, could cover the country's development costs,"
he said.

The 2000 National Population Census recorded around 82.5
million people living in urban areas, with an annual growth of 4
percent. Some 60 percent of those people live above the poverty
line.

He said that philanthropy differed from charity, in terms of
how the donation was channeled.

"Philanthropy is usually through organizations that ensure
donations are used in a productive way, while charity, given to
individuals, is mostly spent consumptively," he said.

Social and religious institutions in the country have been
known to accommodate those who wish to give to the needy. The
National Zakat Agency has recorded that zakat (tithe paid by rich
people) could potentially amount to Rp 2.9 trillion a year.

Sociologist Imam B. Prasodjo said that giving to philanthropic
organizations was a good way of improving social welfare.

"If done properly, by both companies and individuals, it would
also promote civil society," he said.

Contributions could be encouraged by offering tax breaks, he
said. While such a practice is common in the Philippines,
Singapore, Australia and other neighboring countries, it has not
been introduced here.

The Ministry of Finance's directorate general of taxation has
introduced tax deductions for those paying zakat, but has not
consistently implemented the scheme, a local newspaper reported.

By promoting tax deduction based on the donations made, the
government would also be promoting an independent society, Zaim
added.(003)