TEMPO.CO, Jakarta - The Central Information Commission's (KIP) ruling that minimarket chain Alfamart, owned by Sumber Alfaria Trijaya, must disclose how it dispenses with its customers' donations, serves as a warning to other commercial entities that they must be transparent when managing funds donated for charity.
As the plaintiff, Alfamart should have gracefully accepted the verdict, instead of coming up with a lame argument that being a limited liability company not a public company the company is not obligated to disclose its corporate information. After all, the KIP only asked Alfamart to reveal information about public donations, not the company's finances. Even if the company was only collecting and keeping the money temporarily before channeling it to other institutions, it is responsible for informing the public on the status of the donated funds.
Alfamart should not forget that the definition of a 'public entity' according to the Public Information Transparency law is quite broad. It includes not only state executives, legislative, jurisdictive institutions that use the state budget, but also non-governmental institutions that accept public donations.
The company does offer on its website information about the total donation collected, along with the identity of organizations channeling the funds. However, the information given is insufficient. Alfamart should provide a more detailed, if not audited, report. Or better still, publish a real-time report of the funds received alongside detailed reports from the organizations through which the company channeled the funds.
The KIP's ruling to push for transparency is important not only to satisfy Alfamart's customers' right to know, but also to promote credible philanthropic practices in the country. As we all know, fundraising initiatives pop up everywhere particularly after various disasters. There is no need for the government to forbid them, but there must be assurances that the people's charitable spirit is not abused by fundraisers. As such, the public will also have greater trust and confidence in entities through which they offer donations for worthy causes.
Fundraising rules so far do not recognize the public as donors. An illogical clause in Law No. 9/1961 regarding collecting money or goods only requires fundraisers to report their contribution to the social welfare minister or the regional authority that issues permits. It is high time this law is revised, in accordance with international ethics on philanthropy. Fundraisers should be accountable to donors, not to the government.
US philanthropic organizations, for example, adhere to their established code of ethics called the Donors' Bill of Rights. Adopted in 1993, this code of ethics, among others, besides assuring that the donation will reach deserving recipients, also gives donors rights to up-to-date and detailed information on how the donated funds are managed.
In Indonesia, the Press Council in 2013 established the Code of Ethics for Mass Media Philanthropy in 2013. The council took the initiative to formulate the code after several news company opened accounts to collect funds for humanitarian causes. Just like Donor Bill of Rights, the council's ethic code underlines the importance of accountability and transparency.
The KIP's ruling is a good precedence that must be supported by all parties. At a time when there are very limited regulations governing public donations, the KIP has taken the commendable initiative to uphold the principle of transparency. It this case ends up court, the same principle should apply. (*)
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