Business in Indonesia since Reformasi: New Opportunities for CSR and Ethical Capitalism

Abstract

Since President Soeharto resigned in 1998, Indonesia has experienced waves of significant political and social changes known in the country as reformasi. Many earlier changes had since been crystallised, while others continued to be added since a 2004 stock-take of Indonesia’s business system (Van der Eng 2004). This chapter assesses whether these changes help to explain why Indonesia became strongly predisposed to corporate social responsibility (CSR) and to public discussion about aspects of “ethical capitalism”.

One obvious reason for this change is Indonesia’s 2007 Law on the Limited Liability Company which made CSR compulsory. The law defied the common, accepted... Show more