Zaim campaigns for philanthropy

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.