Latest Draft of Company Law - Significant Changes

The latest version of the Draft Company Law (RUU Perseroan Terbatas RUU PT) is attracting a lot of attention from the business community because if enacted in its current format it will require businesses inIndonesiato put in place corporate social responsibility (CSR) provisions. It is expected that these provisions will allow businesses to allocate a percentage of their income to implementing programs that benefit the communities in which they operate. Nevertheless, this is in addition to any community development programs that companies may already have in place. The target appears to be more in terms of fulfilling a company's corporate social responsibility when something goes wrong. The most often cited examples here are theBuyatand Lapindo cases.