Domestic Study on Non-Profit Organizations in Indonesia

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In the carrying out of this study, there are twenty one thousand non-profit organizations also known Non-Profit Organization (NPO) registered in Indonesia. The existence of the NPO sector is regulated by the Government of Indonesia (GoI) pursuant to 26 laws and regulations consist of 15 laws, 4 government regulations, and 7 Ministerial Decree. The implementation of such laws and regulations is conducted by 10 government institutions consist of 8 ministries and 2 ministerial-level institutions. Based on the observation for the last ten years, the trend on the implementation of the related laws and regulations and the supervision of the sector is increasing. The effort on the issuance of laws and regulations related to NPO has been evidence on such trend. The result of this study shows that the existence of NPO in a large amount has not been followed with the laws and regulations. This is shown in the complexities in the prevailing laws and regulations related to NPO. One of the indicators is the haziness in the distribution of duties and authorization among the ministries, whether in the case of neither registration nor supervision. Another indicator is the absence of the effort to map the prevailing laws and regulations comprehensively in order to identify the weak point arisen out of the complexity. The effort in mapping the laws and regulations will be the foundation on the drafting of the laws so that a comprehensive regulation which is cross sectoral is achieved. The result of the study also shows that the government's effort to develop inter-agency coordination related to NPO supervision, including imposing the sanction to those who breaches prevailing laws and regulations, has not been optimized yet. Thus in number of laws and regulations it is strictly stated that NPO is obligated to provide financial report regularly, there are still quite a few NPO complies with the laws and regulations.
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World Bank. 2010. Domestic Study on Non-Profit Organizations in Indonesia. © Washington, DC. License: CC BY 3.0 IGO.
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