The politics of corporate social responsibility in Indonesia

Abstract

In July 2007, Indonesia became the first country to introduce mandatory legal requirements for corporate social responsibility when the Indonesian parlia-ment passed Law 40/2007 on Limited Liability Companies. This paper examines the political dynamics that shaped this and subsequent regulatory developments re-lated to corporate social responsibility and assesses the likely future direction of Indonesia's corporate social responsibility policies. We argue that policy de-bates over corporate social responsibility in Indonesia have reflected a strug-gle between the dominant sections of Indonesia's capitalist class, local commu-nities that have been negatively affected by corporate activity and..