DENPASAR ~

Bali Governor Made Mangku Pastika warned companies in the Island to set aside funds for corporate social responsibility (CSR) which is an obligation in accordance with the laws and command.

“I say that CSR is a company’s commitment to share its profits for social purposes, in this case related to the environment, education, poverty. This obligation is based on Law on Limited Company (PT),” Pastika said in a dialogue titled “CSR in the Acceleration of Bali Mandara program”, in Denpasar, on Monday.

According to him, article of the Law also mentioned that PT is obliged to carry out CSR (Corporate Social Responsibility) and budget it. The Company that does not perform its obligations may be subject to sanctions. So it is not a fund of mercy or rolled funds.

However, Pastika pointed that the implementation is often misguided and often considered as charity. In addition to the law which is less firm for companies that do not carry out the obligation.

In Bali, he added, there are thousands of large companies, but only 30 percent of the money earned back to Bali, while the rest is taken out of Bali because their owners are from outside Bali.

“CSR is not a rolled fund but fund which not designation for any profit, so it is not funding for the promotion, but corporate social responsibility ordered by the law,” he said.

Therefore, Pastika asked companies that work in Bali and get permission in Bali, but do not run the CSR, the license will be revoked.

“Until now we do not implement the law consistently and consequently,” he said.