Encouraging Accountability, DPR RI Agrees To Update The PUB Law For Philanthropy

The Coordinator of the Philanthropic Alliance for Donation Accountability, Hamid Abidin, submitted a draft of the academic script and the Donation Implementation Bill to Baleg Chairman Bob Hasan. (IST)

JAKARTA - The Legislation Body (Baleg) of the DPR RI stated its support for the proposed revision of Law Number 9 of 1961 concerning the Collection of Money or Goods (PUB). This law is considered irrelevant in regulating philanthropic activities or social activities involving raising, managing, and distributing donations. This revision is considered urgent to ensure that philanthropy can contribute optimally in supporting government programs that require support for large resources and funds.

This support was expressed by Baleg DPR RI in the General Hearing Meeting (RDPU) with the Philanthropic Alliance for Donation Accountability at the DPR RI Building, Tuesday afternoon (5/10). On this occasion, the Philanthropic Alliance explained the urgency of the revision of the PUB Law, which is considered to limit the rights and participation of the community to be involved in raising social funds in order to solve various social problems. The Alliance also submitted the Academic Script and the Draft Law (RUU) on the Implementation of Donations as an alternative to replace the PUB Law. This RDPU was attended by various representatives of philanthropic organizations, such as Dompet Dhuafa, the Penabulu Foundation, Human Initiative, Indonesian Philanthropy, and the Indonesia Judicial Research Society (IJRS).

Regulatory Needs

The Coordinator of the Philanthropic Alliance for Donation Accountability, Hamid Abidin, said that fast-growing philanthropy can be an alternative resource to support various priority programs of President Prabowo-Gibran's government, ranging from food security, economic empowerment, to climate change mitigation. "However, this support is hampered by the PUB Law which is restrictive in nature," he said. According to Hamid, complicated licensing requirements and the process that is tiered to hinder philanthropic institutions in carrying out rapid actions, especially in dealing with disasters.

Furthermore, Hamid explained that the three-month valid permit duration does not allow philanthropic institutions to run long-term programs. The current PUB Law also does not provide incentives such as tax reductions or awards for donors and donation institutions. "Revision of the PUB Law is important to accommodate philanthropic actors in the digital era and support the diversity of philanthropic activities in Indonesia," he explained.

Proposal For Amendments To The PUB Law

The Philanthropic Alliance proposes a fundamental change in the Donation Implementation Bill. One of the proposed changes is a simpler permit mechanism, which is sufficient through registration with strict supervision. The registration period is proposed to be valid for up to five years, similar to Zakat, Infaq, and Sedekah (ZIS) regulations. The Alliance also proposes setting a crowdfunding platform and protecting donors' personal data in response to advances in digital philanthropy.

Chairman of the Legislative Council of the Republic of Indonesia, Bob Hasan, expressed his support for the revision of the PUB Law. According to him, appropriate regulations can guarantee the right of the community to participate in development through donations. "This regulation must be able to prevent misuse of funds and support the development of digital philanthropy that has not been covered by the PUB Law," said Bob. He hopes that this revision will make philanthropy more developed and make a significant contribution in helping the government deal with various social issues.

The Philanthropic Alliance for Donation Accountability is a coalition of more than 100 philanthropic organizations and activists focused on regulations that strengthen accountability in the management and distribution of donations. This alliance was initiated by family foundations, corporate foundations, religious foundations, and independent foundations. Alliance Coordination is carried out by the Indonesian Philanthropic Association (PFI) which is also an association of philanthropic institutions in Indonesia.