The PA CSR Academic Chair on Corporate Social Responsibility at The Faculty of Economics at Universitas Indonesia

In 2007 the Indonesian Government passed a law on Limited Liability Corporations which includes a clause formally requiring companies and investors in natural resources to engage in Corporate Social Responsibility (CSR) activities. To date, no implementing regulations have been drafted. However, on 15th April 2009 the Constitutional Court ruled to uphold the mandatory CSR stipulated in the Law No. 40 Year 2007 on Limited Liability Company.

Notwithstanding the debate about mandatory CSR, it is clear that the business and investment climate in Indonesia has entered a new era of complexity with ever deepening interaction between all stakeholders, whether in society or Central and Local Government. This reality is directly connected with the fact that Indonesia became a democracy only in 1999, while over 40 million of its citizens are living in poverty. An ambitious and well intended decentralization program in 2000 is now criticized for unleashing forces of corruption throughout Indonesia’s regencies.

At the same time, businesses, society and authorities are equally faced with pressures of global warming, fluctuation of energy and basic commodity prices, and an ever stronger push towards product safety.

The concept of Corporate Social Responsibility that includes elements of sustainability may well be an inclusive answer to many if not all of these challenges.

Against this background, consulting company PA CSR Ltd and the Faculty of Economics at the University of Indonesia (FEUI) initiated the PA CSR Academic Chair. Through impartial research and analysis this Chair with inputs from the US, the European Union and Indonesia, may be able to develop win-win options for all stakeholders.

The Academic Chair project is designed to create a deeply intellectual, but ultimately practical, understanding of Corporate Social Responsibility. To facilitate the Academic Chair program, both PA CSR and FEUI have agreed to create a CSR Learning Centre at the FEUI, managed by FEUI, PA CSR and other members of the Centre’s Board of Trustees. It will also have a Board of Patrons including corporate donors. This Centre will enable optimal operation and supervision of the Academic Chair program.

The Academic Chair will be simultaneously held by Professor Dr. Alexander Rinnooy Kan (The Netherlands), who is currently Chairman of the Social and Economic Council of The Netherlands (SER). The SER provides formal inputs for all policies related to economics and social affairs undertaken by the Dutch government; by Professor Dr. Roderick M. Hills (U.S.A), Founder and Chairman of the Hills Program on Governance at CSIS. Counsel to the President of the United States (1975) and Chairman of the Securities Exchange Commission (1975-1977). Mr. Hills has worked as a professor at Harvard University School of Law, as a distinguished faculty fellow at Yale University School of Management, and as a visiting lecturer at Stanford University School of Law; by Ir. Sri Hartina Urip Simeon, a former CEO and Chairman of PT Unilever Indonesia whose CSR policies and practices are considered as one of the best examples in the country; and by Dr. Siti Adiprigandari Adiwoso, currently lecturer of CSR at UI.

On 30 June 2009 these professors will hold their inaugural speeches at the campus of the University of Indonesia; on that same day an international conference on CSR will be held with other internationally renowned CSR experts. Chairman is PA CSR Jakarta Chairman Mr. Ir. Sarwono Kusumaatmadja, former Minister of Environment, Minister of Marine Affairs and Fisheries and a senator in the Regional Representatives Council (DPD).

About PA CSR Ltd: PA CSR Ltd. is a consulting company which is part of the PA Group of companies. PA CSR provides strategic advice on CSR and sustainability programs, connecting them with a company’s broader strategy in relation to its sociopolitical as well as commercial needs. Through optimal strategic communication PA CSR helps strengthening a company’s position in the market place and among the most relevant stakeholders. PA CSR also provides sustainability reporting as according to Global Reporting Initiative (GRI) standards. The Chairman of PA CSR Indonesia is Ir. Sarwono Kusumaatmadja, former Minister of Environment and Marine Affairs and Fisheries.

The PA Group includes a network of former Prime Ministers, Ministers, Ambassadors, journalists and industrialists based in among others Jakarta, Beijing, Tokyo, Brussels, The Hague and Washington D.C., providing operational advice to both government and industries on political and regulatory affairs. In Indonesia, PA Asia (Hong Kong, Jakarta, Beijing, Tokyo) has assisted among others the Indonesian Marine Affairs and Fisheries Ministry in 2007 in preventing an import ban of Indonesian fish by the European Commission. PA Russia assisted the neutralisation and lifting of the nuclear submarines ‘Komsomolets’ and ‘Kursk’.

PA Europe (Brussels, The Hague) has been actively involved in various sensitive issues with intricate regulatory components such as major mergers and acquisitions, genetic modification, accession to the European Union and changing Food and Health Regulations. Rio Praaning Prawira Adiningrat is Managing Partner of the PA Group and Baron Paul De Keersmaeker, former Belgian Minister of Agriculture and European Affairs, is Chairman of the PA International Foundation.

About FEUI and the University of Indonesia: The University of Indonesia was established in 1849. With around 60,000 students, it is the oldest and largest university in the country and one of the most prestigious. The alumni and/or faculty members of its Faculty of Economics have occupied senior positions in the Government and Central Bank.


To facilitate your participation into the creation and operation and of the FEUI-PA Academic Chair program and the CSR Learning Centre, three different donor packages have been developed.

The Board of Trustees
Currently five institutions are represented in this Board: PA CSR Ltd, the University of Indonesia and its Faculty of Economics, the Chamber of Commerce for Indonesia, The Netherlands, Belgium and Luxembourg, and the United Nations University.

Members of the Board of Trustees agree to contribute USD 20,000 per annum for the next five years (yearly review possible). In return they have access to all Chair operations with optional exposure of their participation to the media. Only ten Companies can serve as CSR Trustees.

The Board of Patrons
Members of the Board of Patrons will be able to provide advice and obtain feedback on the research and teaching programs of the Academic Chair and the CSR Learning Center. The Board will meet once a year. The company represented on this board will be given visibility on the publication and public events. Patrons may also host a trainee program for the best and brightest students who are part of this Academic Chair program, representing an effective HR opportunity. The required contribution is US$ 10,000 per year for the next five years (annual review also possible).  

Sponsor will be mentioned in the list of sponsors. To become a sponsor, an annual contribution of US$ 5,000 is required for the next five years while an annual review is possible.

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