Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 07JAKARTA2438, INDONESIA - CORPORATE SOCIAL RESPONSIBILITY REQUIREMENT

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07JAKARTA2438.
Reference ID Created Released Classification Origin
07JAKARTA2438 2007-09-05 02:20 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Jakarta
VZCZCXRO8074
RR RUEHCHI RUEHDT RUEHHM
DE RUEHJA #2438/01 2480220
ZNR UUUUU ZZH
R 050220Z SEP 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 6070
RUEATRS/DEPT OF TREASURY WASHDC
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHKO/AMEMBASSY TOKYO 0736
RUEHBJ/AMEMBASSY BEIJING 4271
RUEHBY/AMEMBASSY CANBERRA 1108
RUEHUL/AMEMBASSY SEOUL 4166
RUEAIIA/CIA WASHDC
UNCLAS SECTION 01 OF 03 JAKARTA 002438 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
DEPT FOR EAP/MTS AND EB/IFD/OMA 
TREASURY FOR IA-BAUKOL 
SINGAPORE FOR BAKER 
COMMERCE FOR 4430/BERLINGUETTE 
DEPARTMENT PASS FEDERAL RESERVE SAN FRANCISCO-FINEMAN 
DEPARTMENT PASS EXIM BANK 
 
E.O. 12958: N/A 
TAGS: EINV ECON EFIN PGOV ID
 
SUBJECT: INDONESIA - CORPORATE SOCIAL RESPONSIBILITY REQUIREMENT 
CREATES CONFUSION 
 
 
1. (U) Summary.  The new limited liability company law has created 
great confusion in the business community by mandating that "natural 
resources" companies engage in corporate social responsibility (CSR) 
activities.  The law is very vague and domestic business leaders 
have already raised objections.  International businesses chambers, 
including the American Chamber of Commerce are still unsure what the 
potential impact could be.  Attention is now focused on the Ministry 
of Finance, which will draft the implementing regulations  t flesh 
out the precise CS requireements companie will face.  End Summary. 
 
Limited Liability Legilation: 
Surprise on Corporate Social Responsibilty 
------------------------------------------- 
2. (SBU) Parliament (DPR) passed draft a new law n limited 
liability companies on July 20, 2007, hich awaits Presidential 
signature and numbering. Article 74 of this law has created a great 
dealof concern among both foreign and domestic busineses in 
Indonesia.  The article states that "resouce based" companies are 
obligated to contribute o corporate social responsibility (CSR) 
programs. (See unofficial translation at paragraph 7).  The 
inclusion of this article came as a surprise to any business 
leaders and was reportedly insertedat the last minute by Members of 
Parliament. 
 
ndonesian Business Objects 
-------------------------- 
 
3. (U) The Indonesian Chamber of Commerce KADIN) and other business 
associations have issud a joint statement object ing to Article 74. 
KADN Chairman Hidayat noted that KADIN would firmly rject any 
implementing regulations (which have yetto be promulgated by the 
Ministry of Finance) tht would require a certain percentage of 
profit b diverted to CSR.  Accordi(ng to KADIN, such a requrement 
would simply constitute a tax on business  Rafendi Djamin, 
coordinator of Human Rights Wath Group, said a legal instrument is 
needed to foce companies to be socially responsible and was plased 
that Indonesia woul(d be the first country t pass such  a law. 
 
Intenational Business Confused 
------------------------------- 
 
4. (SBU) The American Chamber of Commr"ce (AmCham) held a 
well-attended meeting of ove  20 companies on August 9 to discuss 
the CSR legislation.  AmCham members commented that Article 44 - as 
currently drafted and in the absence of ip lementing regulations - 
is unclear on several cuunts.  Specifically, the new law: 
 
-- fails to df"ine CSR; 
-- does not designate a government agency to oversee CSR 
activities; 
-- does not discuss possible sanctions for noncompliance; 
-- desiga te approved recipients of CSR funds; or 
-- clarffy what is meant by a "natural resource" company. 
 
 
 
Not all AmCham members are worried.  One representative of a major 
oil and gas company suggested hhat western firms have "nothing to 
worry about" i(nce they already have significant CSR programs.AAmCham members concluded it would be wise to team p  with other 
business chambers, to discuss international best practices of CSR 
with the relevant mnnistries, and to educate GOI officials and 
Parliament about what many businesses are already doing in CSR. 
 
Re-Election Pork? 
----------------- 
 
5. (SBU) There are several theories about what led Parliament to 
insert this last-minute clause into the legislation.  One theory is 
that it is all about pork;  since many officials are being elected 
for the first time, the CSR Article 74 may be an attempt by Members 
of Parliament to show constituencies they are improving their 
localities.  This may be an attempt to bring re-election pork to 
home districts.  Another theory suggests that domestic and regional 
companies are more the target than western companies.  Domestic and 
 
JAKARTA 00002438  002 OF 003 
 
 
Asian companies, as a generalization, tend to do less community 
development and CSR than western ones.  A related issue is that 
under current law, extractive industry companies are required to 
make an environmental impact statement and then file an 
environmental mitigation plan to the Ministry of Environment.  Once 
they are finished extracting the resources, they are required to 
implement the environmental mitigation plan.  However, many smaller 
Indonesian firms go out of business at the end of the resource 
extraction and never implement the mitigation plan, leaving the 
clean-up to the GOI or sub-national governments.  Thus one goal of 
the Article 74 may be to receive CSR benefits "up front" from 
domestic companies. 
 
Comment: No implementation? 
--------------------------- 
 
6. (SBU) The CSR Article 74 seems to be an example of inexperienced 
legislators, who lack both expert staff and an adequate consultative 
process, passing confused and confusing legislation.  The business 
community has three months to provide comments on the law to the 
Ministry of Justice and Human Rights before implementing regulations 
are formulated.  Prominent business leader and Chairman of the 
Indonesian Employers' Association, Sofyan Wanandi, is recommending 
that the CSR requirement not be implemented, according to the head 
of the International Business Council, Peter Fanning.  Many pieces 
of legislation in Indonesia which can neither be properly 
implemented nor enforced, simply die on the vine.  Alternately, the 
relevant Ministry delays the regulations for years.  The CSR Article 
74, is so garbled, confused and hastily drafted (without 
consultation), it may suffer a similar fate. 
 
7. (U) Text of Article 74, Unofficial Translation. 
 
BEGIN TEXT 
---------- 
 
Limited Liability Company Law, Chapter V, Social and Environmental 
Responsibility, Article 74. 
 
(1) Limited Liability Companies that conduct their businesses in the 
area of and/or related to natural resources are obligated to conduct 
Social and Environmental Responsibility. 
 
(2) Social and Environmental Responsibility as referred to in line 
(1) is the obligation of the Limited Liability Company, which is 
budgeted and calculated as the cost of the Limited Liability 
Company, whereby its implementation is carried out by considering 
the sense of propriety and regularity. 
 
(3) Limited Liability Companies that do not carry out their 
obligations as referred to in line (1) shall be sanctioned according 
to the stipulations of the legislation. 
 
(4) Further stipulation on the Social and Environmental 
Responsibility shall be further regulated under Government 
Regulations. 
 
Elucidation of Article 74 
 
Line (1) This stipulation is aimed to maintain the establishment of 
a harmonious, balanced and compatible relationship between the 
Limited Liability Company and environment, values, norms and 
cultures of the local community.  "Limited Liability Companies that 
conduct their businesses in the area of natural resources" refers to 
Limited Liability Companies, whose business activity manages and 
utilizes natural resources or whose business activity has an impact 
on the functions of natural resource capacity. 
 
Line (2) Self explanatory. 
 
Line (3) "Shall be sanctioned according to the stipulations of the 
legislation" refers to penalty by sanction to be regulated in the 
respective legislation. 
 
Line (4) Self explanatory. 
 
JAKARTA 00002438  003 OF 003 
 
 
 
END TEXT 
 
HUME