August 17, 2017, exactly 72 years of Indonesian independence, independence from Japanese colonialism, independence from various colonialism that claimed the people’s right. Constitutionally free, but still many of us have not really felt the true freedom. Indonesia is not yet fully independent, there is still a lot of homework for this nation to be able to “independence” as a whole.
Various problems such as: Poverty; A very deep gap between the rich and the poor; Deviations from the Pancasila economic system, as set forth in Article 33 paragraphs (1), (2), and (3), that what happens is the development of capitalist economy controlled by the conglomerates with various forms of monopoly, oligopoly, corruption, collusion and nepotism (KKN); Rampant rule of power; Law Enforcement Crisis (legislative, judicative under the executive power); Political crisis (the decisive role of the central government); Confidence crisis (the destruction of the political, legal and economic system resulted in people’s disbelief of the government); The level of education of the labor force is still relatively low; Teachers issues; Morality of the nation that is no longer in accordance with the personality of the Indonesian nation based on Pancasila; Criminals are increasingly desperate; Drugs as a serious threat to the younger generation, where recorded number of drug users 5.9 million and 40 people die every day in Indonesia, and many other things more. The law is made to be obeyed and there are sanctions for those who violate it, but the reality in the field turned out that the law was made precisely to be violated. In this case occurs because the implementation of law in Indonesia has many weaknesses and shortcomings, so the need to be firm in reducing the problem of injustice that occurred in the community by empowering the law and putting the right strategy for the implementation of the CSR (corporate Social Responsibility) program to decrease the social problems is urgently needed. Next about the readiness of Indonesia in welcoming the era of industrial revolution 4.0, where there is a digital revolution and access to information and knowledge is almost limitless. All machines are connected through an internet system or known by cyber as well as digital applications, changes are very fast, Indonesia must also be ready with the surprises of this fourth industrial revolution.
Significant developments in the field of technology shook many industries and companies, also breaking down the limitations previously owned by the industry. It is important to change consumer expectations that must be balanced with innovation, product improvement, and services. Need to commit to quickly customize and improve the quality of labor, both in the trade, manufacturing and agricultural sectors that are irrelevant to the current system, especially in terms of innovation and forging skills, creativity is no longer confined within its limitations. The level of education provides an overview of the quality of human resources living in the country. The developed countries of the education level of the population are high, on the contrary with the developing countries, especially poor countries. There are several measures to see the state of education. Indonesia is experiencing the same thing in human resource development, so it will be tough in facing this 4th industrial revolution.
According to the study “The Archipelago Economy: Unleashing Indonesia’s Potential” published by McKinsey in 2012, Indonesia has the opportunity to reach seventh position in the world’s largest economic power by 2030. But to gain that power, Indonesia still needs an additional 60 million skilled workers. The main obstacle faced by Indonesia’s manufacturing industry according to research conducted by World Bank in 2010 is its human resources. So in general, the domestic industry is still experiencing difficulties in producing products with high quality and content of technology, and finally less competitive with overseas products. The question is how far this writing of “EMPOWERING LAW AND STRATEGY OF CSR IN THE WAKE OF THE 4TH INDUSTRIAL REVOLUTION AT INDONESIA” provides solutions.
Which Goes First, Business, Economic or Law as Driving Force For Peace in Indonesia
Human Resources (HR) is the central factor in a company. Whatever the shape and purpose, the company set up under various visions for the benefit of human beings and in the execution of its mission managed and administered by humans. Thus HR is a strategic factor in all company activities. Employees are partners to achieve goals and objectives for advanced and developed large. Employees are assets that need to be protected and handled it very well. Employees with management should complement each other, they are like two sides of a coin are inseparable, interdependent, companies need the workers and the workers need the company. The current development is so rapid, not matched by the existence of Law No.13 of 2003 on Employment, thus often causing various disagreements, arguments and disputes between employers and workers and laborers, this is reflected on each May 1 called with labor day May Day international terms. In Indonesia, the anniversary of the laborers expressed with a massive demonstration. Throughout the demo laborers / workers occurred because of their demands that have not shed light, for example: the abolition of the contract system outsourcing, improvement of the level of wages, termination of employment, wage revoking Government Regulation 78, and the provision of various guarantees of workers. Action is also a form of expression of discontent of the workers against the government deemed insensitive to respond to their aspirations. Of course, such matters give a huge impact on the development of a company, so this paper appear to provide solutions to how the Law of Employees No.13 / 2003 provides a response to the sustained growth of a company in Indonesia.
Indonesia is a country known for its abundant natural wealth with a population of 254.9 million, based on survey conducted by National Socioeconomic Survey (Susenas). Another survey completed by Indonesia’s Central Statistics Agency (BPS) in 2014 and 2015 showed that the unemployment rate in August 2015 was 7.56 million people, an increase of 320 thousand persons compared to the same period in 2014. In the report” The Inequality That Width” released by World Bank, further affirms the chasm that exists between the ‘haves’ and the ‘poor’. The record growth over the past decade has only benefited 20 percent of the richest people in Indonesia. Meanwhile, the remaining 80 percent of the nearly 205 million people are still in poverty, which is an ironic situation. The question arises on how to minimize the above problems? It is known that Indonesia adopts a national conomy which embodies the philosophy of Pancasila and the 1945 Constitution. The country upholds cooperation and mutual support between the government, private sector, and the community in realizing the ideals of the country. The vision in forming a government of Indonesia is to protect the entire Indonesian nation, the entire homeland of Indonesia, and to promote the general welfare. This paper will examine how clean government and good governance can support good corporate governance to improve nation’s welfare.
The debate about Corporate Social Responsibility (CSR) to stakeholders is a fairly lengthy debate in the repertoire of the development of company law. At least there are two fundamentally different views to interpret the corporate social responsibility. The views, Firstly, cling to the belief that the concept of corporate social responsibility is counter productive in the business world. According to Milton Friedman, a corporation are naturally only have a goal to generate economic objectives for shareholders. A prominent liberal economics is very pessimistic and tend to oppose any attempt to make the company as a social purpose.
Furthermore, in Capitalism and Freedom (1962) Milton Friedman clearly states that in a free society there is one and only one social responsibility of business that utilize the company’s resources and engage in activities that aim to maximize profits. If this goal is achieved by the company, it actually functions, and corporate social goals have been achieved, namely to improve the welfare of society.The doctrine of the social responsibility inbusiness, damage the free market economic system. Acknowledging social responsibility that will lead to an economic system leads to the direction of the economic plans of the Communist Countries. In the writings, published in the New York Times Magazine on September 13th, 1970, with the title: “The Social Responsibility of Business is to Increase Its Profits”. This reasoning is supported by Joel Bakan, which teaches that if the company gives some of its profits to the community, the company has violated his nature.
The purpose and function of the Indonesian state in the form is expressly stated in the fourth paragraph of the Preamble of the 1945 Constitution of the State of the Republic of Indonesia, namely to protect all the people of Indonesia and to improve public welfare, to educate the life of the people, in the guidance of Pancasila, 1945 constitution, Unitary State of the Republic of Indonesia and Bhinneka Tunggal Ika as National Pillar. The fourth paragraph of the phrase is still a mere dream, the current condition, the rich get richer while the poor get poorer. The capability of the government is very limited, both in monetary and human resources. The principle of togetherness, kinship and mutual cooperation has diminished and begun to fade, with the emergence of individualist, liberalist, capitalist principle. The presence of a strong legal foundation for social and environmental responsibility due to the pressure of globalization, the debt of the state and other issues as the obligation of companies to participate in making a direct contribution to society will bring new hope to those untouchables in previous government aid programs, if managed well and accurately on families who deserve it. Targeted and measurable CSR program is a concrete form of effort that offers equal distribution of welfare to community while providing protection to the community to live together safely and comfortably. This paper will reveal how government, employers, and communities conduct their duties to jointly provide solutions coveted by families who need these CSR funds.
The measure of a Company’s success should be determined by not only reporting a profit, but also by its COrporate Social Responsibility (CSR) implementation, such as good governance, social responsibility, ethical behavior, environmental initiatives, and ways of creating long term sustainable development. CSR is a concept that all entities themselves must conduct responsibly, with cosideration for the communities they operate in. It encourages companies to transition from the mandatory usual business practice to corporate citizenship with the right to “do good and do no harm.” As problems with economic inequality are unresolved, how does mandatory CSR allow more pro-active implementation by corporate to solve the inequality and economic gap? How can governance help in assembling CSR programs that could improve existing situation to achive national development goals?
3rd Nommensen International Conference on Technology and Engineering 2019 (3rd NICTE 2019), is a premier event that address the new advancements and challenges in the field of Technology and Engineering. This Multidisciplinary Conference will be held in Nommensen HKBP University, Medan Indonesia, during 25 – 26th July 2019.