Philanthropy Trend 2022

Since Indonesia's democratization in 1999, the number of corporate foundations has been rapidly increasing as legislation has been enacted to make CSR activities mandatory for companies. With the aim of exploring future collaboration with the philanthropic sector in Indonesia, the Peacebuilding Department, in cooperation with Filantropi Indonesia, examined the performance of (1) corporate foundations, (2) corporate CSR activities, and (3) family foundations in the three-year period from 2018 to 2020 including the first year of the pandemic.

According to information from publicly available financial statements and reports, we found the total figure of expenditures of (1) Indonesian corporate foundations, (2) CSR activities exemplified by leading 21 companies, and (3) family foundations in the three years was, Rp 2.7 trillion, Rp 2.3 trillion, and Rp 959 billion respectively. Additionally, the scale of their activities expanded in response to massive societal needs during the pandemic.

The research team has reviewed annual reports and related documents as well as interviews with foundation officials, to the extent available and, as a result, proposes policy recommendations including the need for further disclosure (corporate foundations, corporate CRS) and consideration of tax exemptive measures (corporate CSR).