OVERVIEW

In Indonesia, the term philanthropy is a relatively new one. However, the concept of giving has existed for centuries. The people’s religious affiliations provide an atmosphere of philanthropy of which the Islam zakat is an example. Philanthropy is a deeply personal act in Indonesia in the form of money or food. It traditionally takes place within families and neighborhoods.

Because philanthropy is largely associated with the people’s religious practices, the practice of giving has a great potential to cause lasting social and economic change for Indonesians. Unfortunately, resources from religious philanthropy have not always been managed in a professional manner and also have not been distributed efficiently and appropriately.

In 2000, a survey of a sample of Indonesians occupying social strata classes A, B and C and living in a number of major cities revealed a strong preference for giving to other individuals (i.e. those begging for alms, to a relative/friend/colleague in need, etc.). A very high proportion of the population surveyed also gave to religious organisations and voluntary organisations.

Corporate giving in Indonesia is undertaken through four main strategies: 1) Direct involvement; 2) Setting-up corporate-foundation; 3) Making partnerships with other parties; 4) Involvement in a consortium.

The usual areas in which philanthropy takes part are health, education and religious activities. Aid to victims of natural and man-made calamities are also a major part of philanthropic activity in the country.

Millions of people were spontaneously involved in philanthropic activities during Indonesia’s war for independence (1940-1945), providing food, temporary shelter and medicine to soldiers and war victims.

Post-independence era. Several religious organizations were established in the period following Indonesia’s declaration of independence. Two significant ones are the Nahdatil Ulama and the Muhammadiyah, which organized the collection of zakat.

Other organizations that were established during this time are the Lembaga Daya Dharma (LDD) in Jakarta, which managed the funds collected by the all Catholic churches in Indonesia. Similarly, the Yadna Puniakerti in Surabaya collected funds from Hindu temples while the Nichiren Syosu Indonesia (NSI) organized the collection of funds from Buddhist temples.

As previously noted, although collection of zakat has been efficient, its use and distribution has not. A major part of the funds generated from Indonesians is given to fulfill people’s everyday needs. Traditionally, the amil, a mosque official in charge of collecting tithes, receives the zakat but many of them do not have the capacity to handle the large funds so that it can be made to help as many people as possible. Another example is the wagaf which are properties (i.e. land or buildings) that should be used to help alleviate poverty by being a steady source of income. Instead, these are not utilized.

The government has been involved in managing and collecting obligatory annual wealth and poll taxes (Zakat), non-obligatory taxes such as ad hoc contribution in cash or service (Sadaqua), and permanent endowment of property (Wakaf) through a government set body known as Badan Amil Zakat Infak dan Sedekah (BAZ) since 1960. The government has also allowed community and non-profit organizations to self-organize similar tax collecting bodies known as Lembaga Amil Zaka, Infaq, Sedekah (LAZ).

These non-profit organizations are changing the face of philanthropy in Indonesia in that they are well-managed and operate under the principles of transparency and accountability. As such, they have won a good reputation and trust among the Indonesian people.

The private organizations are raising funds by obtaining property donated for religious purposes. They also collect and distribute second-hand items (BarBeKu) and facilitate on-line donations for certain religious events. To maintain sustainability of their resources, organizations are investing some of its funds and are providing credit to small businesses.

“New Order” era. Former Indonesian President Suharto used the term “new order” or orde baru to contrast his rule with that of his predecessor, Sukarno, which he dismissively referred to as “old order” or orde lama.

This period saw the expansion of philanthropic practices channeled through religious and social organizations as the government began the practice of allowing tax exemptions for non-profit foundations in the fields of education, religion, health, and culture.

Major social and religious foundations and organizations founded during this era are: Christian Foundation for Public Welfare or Yayasan Kristen Untuk Kesejahteraan Umum (YAKKUM) founded in Surakarta in 1964; Bina Swadaya Foundation founded in Jakarta in 1967; Tengko Situru Foundation founded in Tana Toraja, South Sulawesi in 1974; Maha Bhoga Marga Foundation founded in Denpasar, Bali in 1982; Gebu Minang Foundation founded in1982; and Dana Mitra Lingkungan (DML) founded in Jakarta in 1983.

Reformation era. Since the re-establishment of democracy in 1998, corporate and religious donations have been increasingly popular as philanthropic activities in Indonesia. Besides these, electronic and print media companies also actively collect funds and give coverage to their own philanthropic activities. Aside from raising public awareness on philanthropic activities, media involvement also provides transparency to the process, playing an increasingly important role in the development of philanthropy in the region.

The Asian tsunami in December 2004 saw unprecedented philanthropic responses from around the world and from within affected countries and communities. In Indonesia, aid came in the form of cash and goods, as well as a moratorium on debt from G7 countries. Local organizations, through informal disaster response networks like Indonesia Peduli, an alliance of NGOs, media groups, corporations and government agencies, also contributed to the relief effort by collecting and distributing private sector donations as well as coordinating volunteer support.

The Indonesian media played an exceptional role in mobilizing and helping to efficiently use funds in the tsunami aftermath. As they covered the unfolding of events, they also encouraged the public to contribute to the relief and rehabilitation fund, mobilized volunteers and helped to reunite families. In addition to collecting funds, media outfits also distributed these funds to charitable organizations involved in relief and rehabilitation work.

The Public Interest Research and Advocacy Center (PIRAC), a local NGO dedicated to philanthropy and capacity-building, recently published a case study on the media’s role in the 2004 tsunami.