Wednesday, March 10, 2010

Green or Green Washing Era?

The Wednesday’s decision by the constitutional court on CSR shows this picture. The dispute provision was the CSR Law article 74 which stipulate that firms must allocate budgets for CSR programs, and the programs must be run according to government regulation.

The state, represented by the Constitutional Court, said that by making it compulsory for the business people, it will help environment to keep under control. Nowadays, environment damage in Indonesia has reached a critical level.

The destruction has committed to have great impact on the climate change. With this decision, businesses, along with the society, have to build a harmonious relationship to mitigate the negative impact of the damage.

However, the plaintiffs expressed the disappointment with the court decision. They believe that the law is contradicting to the spirit of inviting foreign and domestic investment and disrupts small companies’ performance and expansion programs. Stand as the plaintiffs are Indonesian Chambers of Commerce and Industry, The Indonesian Women’s Business association (Iwapi) and the Indonesian Young Entrepreneurs Associations


By Lena Herliana, Economic Energy Researcher

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