Publications

ISO 26000, regarding Social Responsibility, has been ratified by The National Standardization Agency of Indonesia / Badan Standardisasi Nasional (BSN) since September 2010. BSN expects to adopt ISO 26000 into National Standard of Indonesia / Standar Nasional Indonesia (SNI) by 2012. Accountability, transparency, ethical behaviour, respect for stakeholder interests, respect for the rule of law, respect for international norms of behaviour and respect for human rights are the seven principles of social responsibility. To implement social responsibility, there are two fundamental practices: recognizing social responsibility and stakeholder identification and engagement. The standard consists of seven core subjects: organizational governance, human rights, fair operating practices, labour practices, consumer issues, community development and environment. In recent years, there have been several new regulations that exerted a significant impact on the implementation of Good Governance of PSC, which is closely related to CSR. PP 79 / 2010, which concerns Cost Recovery and Provisions on Income Tax in Upstream Oil and Gas Activities, thus rendering expenses of environment and community development programs for PSC exploitation noncost recoverable. UU 14 / 2008 and PP 61 / 2010, concerning Freedom of Public Information, enable anyone to ask for any kind of information that they need from Public Agencies, which in Oil and Gas sector would mean ESDM, BPMIGAS, Pertamina and several PSC from Regional State Owned Enterprises. Perpres 26 / 2010, concerning Transparency of National and Local Extractive Industry Revenues, works as a regulatory framework for the implementation of the Extractive Industries Transparency Initiative (EITI), meaning BPMIGAS and PSCs must implement the principles of good governance and transparency with the * BPMIGAS involvement of stakeholders and sustainable development. In order to fulfil these new regulations, the seven principles, the two fundamental practices and the seven core subjects of ISO 26000 should be adopted by BPMIGAS and PSC through several methods: 1. Implementation of CSR program with the involvement of public relations, security and formalities functions in BPMIGAS 2. Implementation of Work Programs & Budgets focusing more on five ISO 26000 subjects, besides community development and environment programs 3. Implementation of a Logical Framework Analysis in planning, monitoring and evaluating CSR programs. Keywords: Social Responsibility, Government Regulations, Non Cost Recovery, Work Program & Budget, Logical Framework Analysis