Zaim campaigns for philanthropy

A. Junaidi, The Jakarta Post, Jakarta

Some people may still recognize Zaim Saidi as a consumer rights activist, although he is now focusing most of his attention on philanthropic campaigns in Indonesia.

"There is a connection between consumer rights advocacy and philanthropy, and that is social welfare," said Zaim who is chairman of the Public Interest Research and Advocacy Center (PIRAC).

The 42-year-old from Parakan, Central Java, says corporate philanthropic activities in Indonesia began to increase during the economic crisis in 1997.

Before the crisis, he said, corporate donations were channeled through foundations owned by former President Soeharto and the army so the public was not aware of the extent of the philanthropy of the business sector.

Since the downfall of Soeharto in 1998, many companies have set up their own foundations and conducted charitable activities through them.

He said many fund-raising agencies, such as the Dompet Duafa (Purse for the Poor), had reported a significant increase in contributions although the economic crisis had started to fade.

Zaim said Indonesians were accustomed to donating to charitable causes, including Indonesian Muslims who were obliged to give zakat (alms) and shodaqoh (donations).

"Ninety-eight percent of the Indonesian people like to donate. The problem is how to manage the potential in order to improve social welfare," he said.

But charity was different from philanthropy, he said, although some people might see them as being the same thing. Charity was giving someone fish while philanthropy was teaching them how to catch fish.

Zaim said philanthropic activities were not just about giving money or scholarships to the disadvantaged but also about spending time helping people.

Some companies, such as Citibank and GE Elfund, had encouraged their employees to take part in volunteer activities, giving them time off from work.

"There are many employees who want to work as volunteers but they have no time. If they are given time off by their companies, they tend to work as volunteers helping other people," he said.

He said many companies realized they had responsibilities not just to their shareholders but also to the general public.

"In the past, companies paid taxes to the government, hoping that the tax would be distributed for social welfare programs. But the tax was used to pay foreign debt instead, " Zaim said.

He believed philanthropic activities in Indonesia would develop as they had in neighboring countries such as the Philippines and Japan.

Zaim, a graduate of the Bogor Institute of Agriculture in 1986, said PIRAC along with several companies and foundations were currently discussing proposing a possible law to give tax exemptions for philanthropic activities.

In 1991 Zaim received a Public Research Fellowship from Multinational Monitor, led by noted consumer activist Ralph Nader.

"Tax reduction, usually between five and 10 percent, aims to boost philanthropy. The Philippines government and other countries also gives tax breaks for such activities."

The father of four said that public trust in fund-raising agencies had been increasing continuously.

"Philanthropy will develop continuously here even though not many non-governmental organizations (NGOs) are concerned with developing it," Zaim said.

PIRAC was among few NGOs focusing on research and advocacy on individual as well as corporate philanthropy, he said.

The NGO has published several books on philanthropy, including Sumbangan Sosial Perusahaan (Corporate Social Contribution), in cooperation with the Ford Foundation, and Investing in Ourselves: Giving and Fund Raising in Indonesia, in cooperation with the Asia Foundation.

Four years ago, PIRAC began cooperating with the University of Indonesia's Social Welfare Study Program for the Philanthropy Research Award.

The award is given every two years to encourage studies about how to increase living standards.

The NGO lists hundreds of domestic and multinational companies, including Astra International, Sampoerna, Rio Tinto and BP, which have carried out philanthropic activities here.