ACT Suspended, How Should Community Donation Funds Managed?

The Permit to Organize the Collection of Money and Goods (PUB) for the Aksi Cepat Tanggap (ACT) Foundation was suspended by the Ministry of Social Affairs (Kemensos) of the Republic of Indonesia. This step follows a number of problems that plague ACT. Starting from the salaries of management who are considered too high to the use of funds that are considered to violate the rules.

The revocation was stated in the Decree of the Minister of Social Affairs of the Republic of Indonesia Number 133/HUK/2022 dated July 5, 2022, regarding the revocation of the permit to collect donations to the Aksi Cepat Tanggap Foundation in South Jakarta which was signed by the Ad Interim Minister of Social Affairs Muhadjir Effendi.

Based on the provisions of Article 6 paragraph (1) of Government Regulation Number 29 of 1980 concerning the Implementation of Collection of Donations, it reads "Financing of efforts to collect donations is a maximum of 10 percent of the results of the collection of donations concerned".

From the results of the clarification, ACT President Ibn Khajar said that an average of 13.7 percent of the funds collected from the community were used as operational funds for the foundation. The figure of 13.7 percent is not in accordance with the provisions of the maximum limit of 10 percent.

Financial Transaction Report and Analysis Center (PPATK) also froze 60 ACT accounts. It is known that the flow of funds managed by ACT does not only flow domestically but also abroad. From the analysis conducted by the Financial Transactions and Analysis Reporting Center (PPATK) on financial transactions, it was found that there were indications of misuse of funds for personal interests and there were allegations of prohibited activities.

The Bareskrim Polri is also investigating allegations of misappropriation of aid funds by the management of the Aksi Cepat Tanggap (ACT) to be distributed to the heirs of the victims of the Lion Air JT-610 plane crash that occurred in 2018.

According to the police, the misappropriation of social funds originating from the Boeing aircraft factory was allegedly carried out by ACT administrators, namely former ACT President Ahyudin and ACT President Ibnu Khajar. Some of the aid funds to the heirs were allegedly for personal use in the form of payment of salaries and facilities.

The amount of this social fund is no joke. Based on the information from Ahyidin and Ibnu Khajar when examined by investigators, ACT received funds from Boeing to be distributed to victims as social funds amounting to Rp138 billion.

Boeing provides two types of compensation funds, namely cash compensation funds to the victim's heirs of IDR 2.06 billion each and non-cash assistance in the form of social funds of IDR 2.06 billion (total of more than IDR 4 billion).

Humanitarian Fund

Reporting from Wikipedia, ACT took its first action in 1994 in Liwa, West Lampung in response to the earthquake. Then officially became the Aksi Cepat Tanggap Foundation on April 21, 2005. Since then ACT has grown rapidly. ACT's humanitarian volunteer actions appear every time there is a disaster. Even a number of local governments and provincial governments cooperate. Including DKI Jakarta. The funds managed are also fantastic. PPATK said that ACT's annual turnover reaches IDR 1 trillion.

In fact, social institutions that manage public donations are good. The goal, of course, is for humanity. Help people who want to donate. Because not all have access to disaster locations, for example. Noble goal. Using donated funds for operations is also not prohibited by regulated rules.

The problem is if the funds managed are large enough or even giant. This is a temptation in itself. If the manager's salary is large, well, it's actually okay as long as it meets the 10 percent rule, for example. But it would not be nice if an institution founded for humanity turned into a kind of company or business.

That the ACT case can be a valuable lesson about philanthropy. Many Indonesian people are generous in spirit. So, managing humanitarian funds must be careful and transparent. Managers must also be trusted to report every penny used clearly. Routinely make income and expenditure reports to be reported to the public. In the beginning, it would be better if the percentage for operations had been informed.

The government also has to think about regulations regarding social activities related to public donations or philanthropy, both in terms of accountability and sanctions if fraud occurs in the use. Detailed rules can also be made. For example, the institution must carry out routine reporting, it could be every 6 months regarding the use of the funds collected, or there are regulations regarding audits, not just tax audits.