INDONESIA - Asian Philanthropy by pengxuebo


                     ASIA PACIFIC COMMUNITIES?

                        Dede Rusdiana and Zaim Saidi

            Introduction                             devastated the indonesian economy and
    Generosity is an integral part of the            devalued the indonesian currency in rela-
indonesian character, stemming from cul-             tion to the U.s. dollar since 1997 caused
tural traditions, religious wisdom, and a            a decrease in the charitable donations of
strong sense of community. it is reflected           both people and companies. a piraC
in one of indonesia’s most noteworthy tra-           survey (Kurniawati, 2005) reported that in
ditions, gotong royong1 (literally meaning           2000, individual donations to community
“community-driven team work”). Based on              programs averaged rp 233,000, or Us$30.
a survey of the public interest research and         in 2004, the amount donated increased to
advocacy Center (piraC) (saidi, 2002), an            rp 277,400 — but with the devaluation
extremely large majority of indonesian peo-          of the rupiah this equaled Us$29.40 — a
ple (98%) regularly gives either monetary            slight decrease.
or in-kind help. in addition to individual                another potential form of indonesian
generosity, another piraC survey (saidi,             philanthropy is still inadequately explored:
2003) reported a considerable amount of              diaspora philanthropy, or charitable dona-
corporate philanthropy. in 2002, as many             tions given by indonesian immigrants living
as 75 national and multinational compa-              in other countries back to indonesia. There
nies formed an umbrella institution, the             is a lack of information on the volume of
Corporate Forum for Community Devel-                 diaspora philanthropy, how it is disbursed,
opment (CFCD), to encourage corporate                and the purpose and impact of the charity.
giving in indonesia.                                      Johnson (2007) observed that studies
    The amount of philanthropic giving               on diaspora philanthropy generally include
from both individuals and corporations               definitional and data limitations, and the
has been influenced by the indonesian eco-           case of indonesia is no exception. Despite
nomic situation. The monetary crisis that            these limitations, this paper attempts to

Diaspora GivinG:
an agent of Change in asia pacific Communities?

         shed some light on the important phe-            These disgraceful calamities, caused by
         nomenon of diaspora philanthropy to              human negligence, have produced great
         indonesia. The study first explains the          casualties of life and property.
         circumstances under which indonesian                  in addition to its abundance of natural
         people have migrated and diaspora philan-        resources, indonesia is also rich in cul-
         thropy has emerged. second, it explores the      ture. it is home to more than 250 ethnic
         motivations, practices, amounts and targets      groups, each possessing distinct customs,
         of this diaspora philanthropy and explores       traditions, and norms. indonesian people
         how philanthropic efforts are most often         can be divided into two major groups: the
         directed towards immigrants’ hometowns.          Melayu (Malay) tribe, which is the major
         subsequent sections examine the policy           inhabitant of the west territory, and the
         environment for diaspora philanthropy            papua tribe, the primary group in the east
         and offer preliminary recommendations to         territory. The Jawa, sunda and Madura,
         increase the volume and impact of diaspora       who inhabit the Java and Madura islands,
         philanthropy aimed at true social change.        are the largest ethnic groups. other ethnic
         a case study on pos Keadilan peduli Umat         groups include the Minangkabau (who
         (pKpU), providing more comprehensive             inhabit the west territory of sumatera),
         insights into diaspora philanthropy in           Bugis (sulawesi), Banjar (Kalimantan),
         indonesia, is included in the appendix.          and papua. The country’s diversity is also
                                                          reflected by the presence in indonesia
               The Indonesian Diaspora                    of all the world’s major religions (islam,
                                                          Christianity, Hinduism, Buddhism, and
         Indonesia at a Glance                            Confucianism), in addition to numerous
             The republic of indonesia is the fourth      traditional beliefs that predate these organ-
         most populous country in the world, with         ized religions.
         a population estimated at 219 million in              indonesia has undergone a continu-
         2005 (Bps, 2008). it is the biggest archi-       ing monetary crisis since 1997, along with
         pelago country in the world, consisting of       the other countries of southeast asia.
         17,000 islands, with abundant and splen-         However, unlike Thailand and vietnam,
         did biodiversity. indonesia lies on a tectonic   which recovered relatively quickly from
         plate, which makes it extremely vulnerable       the economic crisis and began to develop
         to tsunami-generating earthquakes. The           rapidly, the indonesian monetary crisis has
         potential for natural disaster is heightened     led to prolonged hardship and a politically
         by the lack of awareness of indonesia’s gov-     grim situation in which the authoritarian
         ernment and people. The environmental            regime, which had ruled for over 32 years,
         degradation caused by massive illegal log-       was forced to step down. The transitional
         ging, industrialization (including poorly        period towards a more democratic and
         treated wastewater), and poverty, among          decentralized country has brought with it
         other factors, has provoked floods, land-        a rapid increase of poverty, unemployment,
         slides, and other disasters in the country.      corruption and cronyism.

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     The Millennium Development Goals           three million indonesians have settled in
(MDGs) progress report (Bapenas, 2007)          foreign countries, either as permanent or as
estimated that in 2006, 17.75% of the           temporary citizens.
population lived below the poverty level --
an increase from 15.97% the previous year.      The History of the Indonesian Diaspora
The average life expectancy is 66.2 years.           it is unclear when indonesian people
The 2006 indonesian statistical report          began to migrate in significant numbers.
(Bps, 2006) reported that the infant mor-       some reports say that tribes in indonesia
tality rate2 increased to 34.39, while the      started to migrate as early as the 15th cen-
maternal mortality ratio3 was 307 , the         tury. Early migrants are believed to have
highest in southeast asia.                      included an exodus of Minang families to
     The country’s large population and poor    negeri sembilan, Malaysia and members
economic conditions have led to a surplus       of tribes that had a long tradition as wan-
workforce in indonesia. according to the        derers, such as the Minangkabau.
Migration information source (Graeme,                The 17th century saw the beginning of
2007) it is estimated that in 2006, an          the formation of an indonesian diaspora in
estimated 11% of the indonesian work-           south africa. in 1592, a Dutch Trade Com-
ers (11.6 million) was unemployed, while        pany, voC (vereenigde oost-indische
another 20% were underemployed. The             Compagnie), led by Jan van riebeeck,
lack of work within the country has forced      landed at the Cape of Good Hope with
widespread migration to other countries.        Malay servants. in 1658, the Mardyker
     There are two major groups of migrants     arrived on the Cape. The Mardyker were
in indonesia. The first cohort is comprised     independent Muslims from ambon and
highly educated and skilled individuals who     Maluku, sent as a security force to protect
migrate to developed countries, especially      the trade interests of voC and the Dutch
members of the organization of Economic         settlement from disturbance by the native
Cooperation and Development (oECD),             inhabitants (saidi, 2007).
and can compete effectively with others for          in the 19th century, the Dutch colony
work in those countries. The second group       in Java sent thousands of Javanese to suri-
is comprised of a large number of unskilled     name and new Caledonia to work on
female workers who migrate from indone-         Dutch plantations. This was an enforced,
sia to the Middle East and africa to work       rather than a voluntary migration. Further
in the domestic sector. Unlike those in the     migration resulted from religious beliefs;
first group, who tend to settle permanently     Muslims began leaving indonesia for the
in the destination country, individuals in      Middle East to study and to perform Hajj.
the second group usually migrate tempo-         These migrants often did not return to
rarily and often illegally.                     indonesia. From 1853 to 1858, only half of
     There are no reliable data on the number   those who departed for Mecca returned to
of indonesians living in foreign countries.     their homeland (Jaquet, in van Bruinessen,
However, it is estimated that more than         1995:49). in 1931, van der plas (Bruines-

Dede Rusdiana and Zaim Saidi                                                             161
Diaspora GivinG:
an agent of Change in asia pacific Communities?

         sen, 1995:50) reported that 10,000 of the        and prospects available in many foreign
         30,000 individuals that had departed from        countries, the invitation from families and
         indonesia to gain the title of “Haji” did not    friends to join them in their new country;
         return.                                          the recruiting agencies that actively recruit
             at the end of 19th century, education        new workers; and the hope of obtaining
         migration emerged among indonesians.             higher social status.
         a small number of Javanese aristocrats                Based on an apJaTi (asosiasi perusa-
         (pribumi) , traveled overseas, especially to     haan Jasa Tenaga Kerja indonesia / associa-
         the netherlands, to continue their studies       tion of indonesian Workforce recruiting
         at higher levels. at the beginning of the        Company) report (Antara News, 2007),
         20th century, the opportunity to study in        3.7 million indonesian migrant workers
         Europe improved with the implementation          have been recruited by apJaTi members.
         of Politik Etis4                                 approximately 46.4% (1.7 million) are
             Both economic and educational migra-         skilled and expert workers, working in sec-
         tion continued throughout the 20th century       tors such as health, oil and gas, petrochemi-
         and the early years of the 21st century. Labor   cal, garment, electronic, construction, hotel
         migration to the Middle East increased sig-      and hospitality, and plantation. The other
         nificantly beginning in the 1970s with the       migrants work in informal sectors such
         region’s burgeoning oil industry. in addition    as pLrT (penata Laksana rumah Tangga
         to those employed directly by the oil indus-     / domestic helper) (Antara News, 2007).
         try, this workforce includes indonesians         over one million legal migrant work-
         working as domestic help and caregivers. in      ers reside in Malaysia and many of them
         addition, significant migrant workers from       work at petronas (Malaysia oil Company),
         indonesia have recently taken jobs in closer     in the aeronautics industry, in rattan and
         countries, including Malaysia, singapore,        wood, or as lecturers. Many also work as
         Hong Kong, south Korea and Japan.                laborers at palm plantations, rubber estates,
                                                          and factories, or as construction labor and
         The Indonesian Diaspora Population               domestic servants (Migrant CarE, Kompas
              Based on the Ministry of indonesian         newspaper, september 28, 2007).
         Foreign affairs report (Kompas newspaper,             in recent years, indonesian migration
         september 14, 2007), more than 3.7 mil-          has steadily increased. The largest increase,
         lion indonesian live in foreign countries;       in 1997-1998, coincided with the onset of
         2 million of them in Malaysia. Meanwhile         the economic crisis in indonesia. in 2001-
         The Migrant Care estimated that more than        2003, there was a significant decrease in
         4.5 million indonesian live in foreign coun-     the number of migrant workers, following
         tries (MigrantCare, 2008). a World Bank          the prohibition issued against temporary
         report (2006) observed that many factors         foreign workers entering some Middle East
         contribtue to indonesian migration: the          countries and Taiwan. This was caused
         irregular and insufficient income to meet        by the escalating political situation in the
         daily needs, the wider range of opportunity      Middle East and the sars epidemic in

         162                                                             asia pacific philanthropy Consortium

pacific asia (World Bank Fact sheet, Janu-             Below is a summary of indonesian
ary 2006). in 2006, 680, 000 indonesians          migration, based on destination country,
officially migrated: 327,000 went to the          from 1994 to 2006.
pacific asia territory ; 350,000 are reported          it should be noted that these numbers
to be in africa and the Middle East, with         do not include illegal workers. The Direc-
the majority of them in saudi arabia.             torate General of Migrant Workers place-
The rest are in The United arab Emirates,         ment (Depnakertrans, 2007) reported that
Kuwait, Jordan, Qatar, Bahrain and neigh-         there are more than one million illegal
boring countries.                                 migrant workers including 400,000 in
                                                  Malaysia, 400,000 in saudi arabia, 20,000
Table1. Indonesian Migrant                        in south Korea and 8,000 in Japan. This
        Workers, 1994 – 2006
                                                  illegal status likely causes many problems
 No    Destination Country             Number
  I    Asia Pacific                  2,731,730
                                                  for both the migrant and the destination
  1    Malaysia                       1,833,122   country. For example, many social conflicts
  2    Singapore                        306,354   in Malaysia are thought to be triggered by
  3    Brunei Darussalam                 54,532
                                                  illegal indonesian migrant workers.
  4    Hong Kong                        156,112
  5    Taiwan                           276,194
  6    South Korea                       81,423   Diaspora Remittances and
  7    Japan                              2,140   Government Policy
  8    Others                            21,853
                                                       Despite the problems faced by many
 II    Middle East and Africa        2,169,695    migrant workers -- particularly illegal work-
  9    Saudi Arabia                   1,940,415   ers -- the government continues to encour-
 10    United Arab Emirates             109,085   age migration as an important means of
 11    Kuwait                            85,646
                                                  easing national unemployment and increas-
 12    Bahrain                            3,105
 13    Qatar                             10,191   ing currency flows to the country. During
 14    Oman/Tunisia                       7,068   2006, migrant remittances added approxi-
 15    Jordan                            10,445   mately rp 61 trillion (Us$ 6,7 billion) to
 16    Cyprus                                23
 17    Egypt                                  1
                                                  the national economy. This is the second
 18    Others                             3,716   largest foreign exchange contribution after
                                                  that of the oil and gas sector. accord-
 III   America                          18,338    ing to the national Board of indonesian
 19    United States of America          17,036
 20    Others                             1,302
                                                  Migrant Worker placement and protection
                                                  (Bnp2TKi) (Depnakertrans, 2007), this
 IV    Europe                            7,588    contribution could feed 30 million people
 21    Netherlands                       2,543
                                                  in indonesia.
 22    Italy                               786
 23    Britain                               8         regions with a large number of migrant
 24    Spain                                 1    workers rely on the workers’ remittances as
 25    France                                1    their primary local income. a World Bank
 26    Others                            4,249
                                                  report (2006) compared local income and
       Total                         4,927,351
                                                  migrant remittances at province and dis-

Dede Rusdiana and Zaim Saidi                                                               163
    Diaspora GivinG:
    an agent of Change in asia pacific Communities?

              trict levels. East Java province, for example,   target to increase the number of migrant
              has a much higher income from remit-             workers to 3.9 million by 2009. if this
              tances than from local income (see Figure        target is met, remittances could increase
              1). remittances obtained by East Java            to rp 186 trillion per year (Us$ 20.2 mil-
              province may soon reach more than rp 3           lion) (Depnakertrans, 2007). Therefore, the
              trillion (Us$ 329,67 million). similarly,        government has been working to curtail
              in the District of sukabumi, West Java,,         the bureaucracy that currently burdens
              remittances obtained are much higher than        migrant workers and to establish a set of
              local income.5                                   legal policies to protect workers’ interests.
                                                                    The government has issued several
Chart 1. Comparison of local income and migrant
         remittances at province and district levels           statutes -- including Law no. 39/2004 and
                                                               president instruction (inpres) no. 6 / 2006
        Amount of Remittance and PAD in Sukabumi District      -- regarding migrant workers’ overseas
                                                               placement and protection. Given the high
           600                             PAD
                                                               concentration of indonesian migrants in
           500                                                 Malaysia, the indonesian government has
           400                                                 also established a comprehensive Memo-
           300                                                 randum of Understanding (MoU) with
           200                                                 the Malaysian government setting out the
           100                                                 rights and obligations of workers, employ-
                    2001   2002   2003
                                                               ers, the indonesian Migrant Workers
                                                               agent in Malaysia, the indonesian Migrant
           Amount of Remittance and PAD in Provinces           Workers recruiting Company in indone-
                                                               sia, and both governments. Unfortunately,
                                                               implementation of the MoU is not fully
          3000                             PAD of
                                           East Java           consistent.
                                           Remittance of
          2000                             East Java
                                                                     Diaspora Philanthropy
          1500                             PAD of NTB
                                           Remittance               The practice of philanthropy among indo-
           500                             of NTB
             0                                                 nesians emanates from long-held religious ide-
                 2001 2002        2004
                                                               als and cultural ideals beliefs. Johnson (2007)
                                                               reported that nearly all of the world’s moral
(World Bank, 2006)
                                                               systems instruct believers to help those in
                   Given the potential of migrant work-        need. islam, the primary religion in indo-
              ers’ remittances to contribute to the eco-       nesia, holds charity to those in need as an
              nomic well-being of their hometowns,             important doctrine. Zakat, infaq, sadaqa
              it is understandable that the indonesian         and wakaf all refer to islamic giving prac-
              government (in particular, the Ministry of       tices, either voluntary or obligatory, both in
              Manpower and Transmigration), has set a          monetary and non-monetary wealth 6.

              164                                                             asia pacific philanthropy Consortium

     although all major world religions are      thus showing the achievement and success
found in indonesia and among its diaspora,       of the migrant worker in a foreign country.
this paper focuses on the philanthropic          Contributions to community development
practices of Muslims for several reasons:        or giving “for the public good” clearly exist,
islam is the religion of the majority of         but such uses are limited and poorly docu-
indonesians, living in and outside of the        mented.
country; there are promising islamic-based            While there is no data to inform a com-
philanthropic organizations in indonesia;        prehensive analysis of indonesian diaspora
and, a full exploration of all of the coun-      philanthropy motivations, they are likely
try’s philanthropic traditions is beyond the     to be similar to those described by Garchi-
scope of this study. We expect someday to        torena (2007) regarding disapora giving to
conduct a comparative study on philan-           the philippines: (1) to help people in need
thropic giving across the country’s religions,   as a religious obligation; (2) to give back
which would be strategically important for       to the country of their birth motivated by
the indonesian’s pluralistic society.            a sense of gratitude for the life they lived
     indonesian diaspora giving has likely       while in the hometown; (3) to express com-
been practiced for as long as migration,         passion for people in need in the hometown;
and has long been connected to one’s com-        (4) to demonstrate connectedness to the
munity of origin. For example, those who         hometown; (6) to show the achievement
had left for Hajj and studied abroad often       made in the destination country and share
returned after several years in the Holy         this achievement with the hometown; and,
Land and established pesantrens (Muslim          (7) to help victims of disaster.
boarding schools). in pesantren, they passed          The last rationale — to assist victims of
on — or “gave” — their new knowledge             disaster — is a unique but powerful moti-
to their pupils, and in most cases also took     vation. recent examples of disaster-related
care of their pupils’ daily needs.               philanthropy include fundraising by indo-
                                                 nesian students’ unions for the aceh Tsu-
Philanthropic Motivations                        nami (2004), the Jogja earthquake (2006)
    There is no comprehensive study on           and the earthquake in West sumatera
the motivations of diaspora philanthropy         (2007). in an emergency situation ethnic
in indonesia. it is likely motivated by both     or religious connections appear to become
a combination of factors, including a sense      irrelevant; giving way to broader national-
of familial obligation, a desire to improve      istic and altruistic motivations.
the quality of life of a migrant’s family, and
a desire to demonstrate the economic suc-        Scale and Mechanisms of Giving
cess achieved while living abroad. a report          no study has been conducted on the
from Migrant Care (2007) concluded that          volume of diaspora giving to indonesia or
migrant workers’ remittances are generally       the manner in which these funds are col-
spent in very visible ways, such as in build-    lected and distributed. indonesians are
ing or renovating a home or buying a car,        accustomed to giving money personally

Dede Rusdiana and Zaim Saidi                                                               165
Diaspora GivinG:
an agent of Change in asia pacific Communities?

         to those in need, which does not normally        can undertake a variety of functions, from
         require the involvement of any social insti-     informal socializing to organizing ways
         tution or organization. This makes it dif-       to share their prosperity with their home
         ficult to obtain information on how much         community. such groups may share not
         money is actually given to charity. Moreo-       only money and materials, but also ideas,
         ver, the indonesian philanthropist typically     knowledge and experience to help the
         prefers to remain anonymous. in fact,            development of their hometown. in other
         islam teaches the concept of ikhlas, which       words, they are providing both financial
         encourages givers to disguise their identity,    and “social” remittances to their communi-
         because generosity will not be counted           ties of origin.
         before God if it has been mentioned to                one such hometown association is
         others 7.                                        the Minang Usa Foundation, established
              Likewise, it is not easy to determine the   by the Minang tribe in the United states.
         frequency with which charitable funds are        responding the 2007 West sumatera
         distributed by indonesian migrant workers        earthquake, this organization provided
         to their hometowns or to charitable organi-      Us$2,500 to build an emergency primary
         zations. For many Muslims it is likely that      school in Ganting, Tanah Datar, West
         charity (infak, sadaqa, including Zakat)         sumatera. another example of a Minang
         is extended only at certain times, usually       migrant community organization is the
         during ramadhan (the fasting month) and          The Indonesian Minang Saiyo Sydney, in
         Eid-el Fitri, when Muslims are obliged to        australia. Established in 1987, the organi-
         give zakat. Muslims further believe that         zation includes about 200 family members.
         ramadhan and Eid-el Fitri are the best           This group provided Us$8,900 in response
         times to express their generosity for others.    to the 2007 West sumatera disaster.
         Moreover, indonesians tend to come home               another Minang migrants’ organiza-
         and celebrate these holidays in their home-      tion that is quite large, both organization-
         towns, making personal and direct giving         ally and in its contributions, is Sulit Air
         more easy. Despite the paucity of research,      Sepakat (SAS). This organization, originat-
         diaspora giving by and/or through certain        ing from sulit air, is the oldest and largest
         kinds of organizations or groups appears to      diaspora association in West sumatera. sas
         be significant.                                  has around 60 Branch Management Boards
                                                          (Dewan pimpinan Cabang) in indonesia
               Hometown Associations                      and four others in Malaysia, sydney, Mel-
              Based on available data, it appears that    bourne and Washington, D.C. (Suara SAS,
         diaspora philanthropy is often targeted to       1995).
         a migrant’s community of origin. When
         living outside of the country, many indo-            Indonesian Student Unions
         nesian migrant workers form informal or               indonesian students in foreign coun-
         formal organizations based on common             tries often form student organizations.
         communities or hometowns. such groups            a good example is persatuan Mahasiswa

         166                                                             asia pacific philanthropy Consortium

indonesia di amerika serikat (permias)           collecting humanitarian donations to help
-- the indonesia student association in          those in indonesia. For example, the Forum
the United states-- which has branches in        Komunikasi Masyarakat Muslim indonesia
every state. permias collected rp 25 mil-        se-Jerman (ForKoM-Jerman), or Com-
lion (Us$2,777) for the 2006 tsunami in          munication Forum for indonesian Com-
aceh.                                            munity, in Germany, raised funds to help
     student associations are also found in      tsunami victims in aceh.
many other countries, including australia,
netherlands, Germany, Britain, Japan,               Not-for-profit Organizations.
and india. Despite the fact that members             a few not-for-profit organizations in
of these associations are mostly students,       indonesia have established offices abroad to
who are paying for their education instead       rasie funds for charitable purposes within
of earning a salary, these organizations         indonesia. Two examples are Pos Keadilan
have great potential for disaster-relief. Col-   Peduli Umat (pKpU) and Yayasan Pulih
laborating with indonesian Embassies and         (pulih Foundation). pKpU is an islamic-
other indonesian diaspora networks, these        based organization that has been officially
organizations have successfully conducted        recognized by the indonesian government.
fundraising events such as charity nights        pKpU has been appointed as a national
and charity bazaars, often raising consid-       zakat collection organization, which means
erable amounts of money for charity and          that it is officially acknowledged by the
relief. For example, indonesian students         government as responsible for managing
and indonesian migrants in Qatar -- num-         and distributing zakat, infak, sadaqa and
bering approximately 18,000 -- in coor-          wakaf, both within indonesia and among
dination with the indonesian Embassy,            the diaspora. Based on a pKpU report
successfully collected Us$19,000 in only         (pKpU, 2007), considerable funds have
four days for tsunami victims in aceh.           been raised from indonesians living in other
similarly, indonesian students in the neth-      countries. These funds are distributed for
erlands collected Us$2,670 to help victims       disaster assistance and also for other aims
of the Yogyakarta earthquake in 2006.            such as building education facilities and
                                                 praying houses, or to promote community
    Faith-based Groups                           economic development. (The activities
     indonesian communities in foreign           and accomplishments of pKpU are further
countries also form organizations or forums      elaborated in the appendix.)
based on shared religious views. (Typically,         another organization, Yayasan Pulih,
such religious groups are informally organ-      successfully collected as much as $6,000
ized around mosques, sometimes with              for the victims of the conflict in ambon,
support from indonesian embassies.)These         a capital city of Moluccas province. These
forums strengthen the sense of community         funds were distributed through the Maluku
among indonesians practicing the same            refugee Coalition (Koalsi pengungsi
religion; they are also used as channels for     Maluku).

Dede Rusdiana and Zaim Saidi                                                             167
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an agent of Change in asia pacific Communities?

              Diaspora philanthropy, provided                  The Impact of Diaspora
         through the organizations described above,                 Philanthropy
         is clearly still sporadic and incidental.             according to the asia pacific philan-
         Certainly, much fund-raising occurs only         thropy Consortium (appC) (2007), stra-
         in response to disasters within indonesia.       tegic philanthropy by diaspora populations
         More systematic giving, through these            refers to investments that fund longer-term
         organizations, is limited. This is partly due    and sustainable social change in home
         to the temporary nature and the constantly       countries, as opposed to charitable giving
         changing membership of some organiza-            that addresses immediate needs and remit-
         tions, such as student unions. However,          tance transfers that “fulfill familial obliga-
         people are beginning to realize the impor-       tions.” strategic philanthropy can range
         tance of more strategic and sustainable          from monetary giving to intellectual giving
         philanthropic practices. Even though it is       or in-kind giving such as volunteerism and
         still only on a small-scale, certain efforts -   knowledge exchange.
         - such as those conducted by some female              Using this definition, indonesian
         ex-migrant workers from various districts        diaspora philanthropy cannot yet be called
         to exchange knowledge, skills, and money         strategic philanthropy; although its poten-
         -- show much promise and deserve com-            tial is apparent. The country’s widespread
         munity and government support (Kompas,           poverty likely motivates many indonesians
         March 10, 2008).                                 living overseas to give to charity to alleviate
                                                          individual suffering and address immediate
         Distribution of Diaspora Philanthropy            needs. But growing exposure to organiza-
              it appears that a significant portion       tions such as pKpU and Dompet Dhuafa
         of the limited volume of diaspora giv-           Republika may gradually change the per-
         ing supports community infrastructure            spective from “giving the fish” to “giving
         improvements such as the building of             the fishing rod,” and help to change chari-
         roads and bridges, praying houses and            table giving into strategic philanthropy.
         meeting halls, and public graveyards. For             The passage of regulation no. 38/1999
         example, in Nagari (the smallest unit of the     on Zakat collection has encouraged the
         West sumatera government hierarchy), the         emergence of many islamic charitable man-
         house of the nagari representative, worth        agement organizations. in 2001, pKpU and
         rp 500 million (Us$ 55,500), was built by        DD republika were established, followed
         funds collected mostly from migrant work-        by the Yayasan Baitul Mal Umat Islam Bni
         ers (BKKBn, 2005).                               46 (Bamuis 46) in 2002, Dana Peduli Umat
              The education sector also receives Zakat    Darut Tauhid (DpU DT) in 2004, and sev-
         and infak contributions from migrant             eral other similar organizations. in addition,
         workers. Funds support a variety of initia-      Yayasan Keragaman Hayati (KEHaTi), the
         tives and programs including school fees,        indonesian Biodiversity Foundation, has
         teacher incentives and the purchase of           encouraged the development of strategic
         books.                                           corporate philanthropic activities through

         168                                                             asia pacific philanthropy Consortium

a program called “indonesia philanthropy        concern that the government was not being
initiatives.”                                   supportive enough to people suffering from
     These charitable management organi-        disaster or conflict; third, a widespread
zations are demonstrating how philan-           belief that many islamic foundations pro-
thropic giving can be both professional         vide few concrete actions to help people.
and strategic. They have the ability and the    according to pKpU, indonesia — the
resources to improve public participation       world’s largest Muslim population — is in
and empower communities. They address           a strong position to manage Muslim Zakat
difficult and important issues such as civil    and infaq funds for the empowerment of
rights and labor. professional management,      poor communities.
accountability, and transparency have built          Trust in pKpU has been evidenced
community trust in these organizations, a       by the legalization of pKpU as a national
necessary ingredient for strategic philan-      Zakat organization in 2001 and by the sig-
thropy.                                         nificant increase in charitable giving from
     Two organizations — Pos Keadilan           indonesian communities, both at home
Peduli Umat (pKpU) and the Sulit Air            and overseas. pKpU data, summarized in
Sepakat Organization (sas) illustrate the       the following table, shows there is a sig-
emergence and the potential of strategic        nificant increase in the amount of funding
giving among the indonesian diaspora.           received from indonesians living abroad.

Pos Keadilan Peduli Umat                        Table 2. Migrant Contributions to PKPU

     pKpU cannot be separated from partai             Year         Funds Received (IDR)
Keadilan sejahtera (pKs), an islamic politi-          2006              3.4 billion
                                                      2005              4.5 billion
cal party born after suharto’s era had ended.
                                                      2004              1.7 billion
initially, pKpU was under pKs’s organiza-             2003              1.2 billion
tional structure, and known as Pos Terpadu            2002             500 million
Pelayanan Masyarakat (poster Masyarakat),             2001             450 million
and became an independent foundation in
1999. pKpU collects and manages philan-             This funding came from indone-
thropic funding from indonesians living in      sians living in the United states, Canada,
and outside of the country. Because of its      Germany, Japan, australia, United arab
affiliation with islamic groups, most dona-     Emirates, netherlands, sweden, Qatar,
tions, both monetary and in-kind, are in        south Korea, Brunei, Malaysia, singapore,
the form of Zakat or infaq/sadaqa.              pakistan, England, norway, saudi arabia,
     There are three key reasons behind the     Kuwait and sudan.
establishment of pKpU as an independ-               pKpU has four main program areas:
ent organization devoted to strategic phi-      health, education, the economy and reli-
lanthropy activities: first, the community      gious da’wa (literally, “a call to islam”).
enthusiasm for giving funds to pKpU when        Distribution of funds further falls into
it was still under the pKs; second, public      three categories: rescue (emergency), reha-

Dede Rusdiana and Zaim Saidi                                                             169
Diaspora GivinG:
an agent of Change in asia pacific Communities?

         bilitation, and community development or          the pKpU formed an independent group
         empowerment.                                      or Kelompok swadaya Masyarakat (KsM)
              as much as 85% of pKpU contribu-             to distribute resources from the revolving
         tions are used for relief and rehabilitation      fund to community members in the form
         programs. Due to it extensive field expe-         of small, two-year loans. Beneficiaries have
         rience, pKpU is able to distribute funds          included farmers, breeders, home industry
         for disaster relief quickly and effectively.      owners, small business owners, motorcycle
         often pKpU works together with other              rental business owners (tukang ojek) and
         organizations — such as Dompet Dhuafa             fishermen. other activities supported by
         Republika, Darut Tauhid, LAZIS Al-Azhar,          the community empowerment revolving
         MER-C Doctor Network and Partai Keadi-            fund include: distributing animals for qur-
         lan Sejahtera — to reach those in need.           ban (sacrifice); building clinics; providing
              Humanitarian activities include mobile       goods such as rice mills, tractors, boats,
         clinics, free health services, food distribu-     and coconut mills (in Galela and north
         tion, and distribution of used clothes to         Maluku), training for linen industry own-
         refugees of conflict or natural disaster.         ers (in Yogyakarta), and alternative educa-
         Missions have been conducted in areas             tion for refugees (in north (huri, Maluku,
         including Ternate, Bacan, Tidore, Makian,         in collaboration with et Forty).
         Halmahera, ambon, Buru, seram, Kei,                   recently, pKpU was asked by padang-
         Bengkulu, poso, parigi, palu, sumatera            nese living in other countries to manage and
         Barat, aceh, Gorontalo, pandeglang,               distribute 100 million rupiah (U$11,000)
         and Madura. Through its rehabilitation            for economic empowerment programs in
         programs, pKpU provides scholarships,             padang, a capital city of West sumatera
         assistance to orphans, food supplements           province.
         for elementary school students, school
         renovations and prayer facilities in areas        Sulit Air Sepakat Organization
         of conflict or natural disaster, and mental           The Sulit Air Sepakat (sas) organiza-
         and spiritual education for refugees. pKpU        tion is an excellent role model for other
         policy ensures that contributions to help         organizations wishing to inspire and facili-
         victims of a specific disaster or disaster area   tate diaspora giving. sas is a membership
         are used as directed by the donors.               organization whose members are indone-
              only 15% of the community funds              sians from sulit air in West sumatera who
         managed by pKpU is used for community             are residing in other countries. sas is con-
         empowerment. of this 15%, as much as              sidered to be both a motivator of charitable
         70% supports health, spiritual and educa-         giving for hometown development and a
         tion-related activities such as scholarships      bridge between the diaspora contributors
         and skills training. The other 30% of the         and their home community. it was estab-
         funds is put into a revolving fund.               lished in 1918 in padang City, the capital
              various groups have benefited from the       of the province of West sumatera. initially,
         revolving fund. For example, in Jakarta,          sas’s main activity was to help with funeral

         170                                                             asia pacific philanthropy Consortium

ceremonies for indonesians from Sulit Air        provision of ambulances and computers
Nagari who died in foreign countries. in         as well as direct health services such as eye
1930, sas changed its orientation, deciding      operations.
to “focus its help on the living, rather than        in the economic sector, sas facili-
those who have passed away” (Huri, 2006)         tates the development of Community
During the same period, the Muhammadi-           Loan organizations or Bank Perkreditan
yah organization and sumatera Thawalib           Rakyat (Bpr) for small businesses in sulit
in padang panjang led some reformation           air. These rural banks were started when
practices in islam, which encouraged sas         suharto, the president of indonesia, asked
to engage in more social and community           people to contribute at least rp 1000 annu-
empowerment activities.                          ally to hometown development. people in
    The success of Sulit Air Sepakat’s philan-   West sumatera acted on this appeal with a
thropic efforts can be seen most clearly in      movement called Gerakan seribu Minang
the newly created office of representatives      (Gebu Minang), successfully establishing
of the nagari Community. With diaspora           7 Bprs in the province, including one in
philanthropy contributions, this office has      sulit air nagari.
completed significant infrastructure, edu-
cational, health, and economic initiatives
                                                   The Enabling Environment
in the community. sas also responds to
natural disasters in West sumatera and in        Obstacles and Challenges
other parts of indonesia.                             in recent years, a number of new pro-
    infrastructure improvements have             fessional intermediary organizations have
included the construction of roads,              been established in indonesia to facilitate
bridges, schools, mosques (mushalla) and         local and/or diaspora giving. in addition
a community health center (Puskesmas). in        to DD republika and pKpU, previously
addition, sas has made major improve-            described, groups such as Rumah Zakat,
ments in educational facilities including        Forum Zakat, Tabung Wakaf, Free Health
the Kindergarten school (TK), the islamic        Center, etc. all facilitate charitable giv-
Junior High school (MTsn), the islamic           ing. notable is the application of modern
senior High school (Man), the islamic            management practices to philanthropic
Boarding school, and the College in sulit        activities, with increasing levels of account-
air nagari. These projects have been com-        ability and transparency in fund collection,
pletely funded by sas members living in          management and distribution.
other countries.                                      However, there are significant obstacles
    in the education sector, sas provides        to promoting and implementing strategic
support, sometimes in collaboration with         philanthropic activities within the coun-
other foundations formed by sulit air resi-      try and among its overseas citizens. These
dents living abroad8, in the form of annual      obstacles follow those identified by najam
scholarships and books for students. in          (2007) in his observations about charitable
health, sas activities have included the         giving among asians. Most notably:

Dede Rusdiana and Zaim Saidi                                                               171
Diaspora GivinG:
an agent of Change in asia pacific Communities?

         	 •	 There	 is	 a	 strong	 preference	 to	 give	   government is also increasingly exploring
              directly to individuals in immediate          ways to encourage other forms of diaspora
              need rather than through an institution       contributions, such as the philanthropic
              or organization conducting long-term          activities discussed in this paper.
              community development programs.                   The indonesian government has insti-
         	 •	 There	are	a	limited	number	of	organi-         tuted several policies to make migration
              zations with truly “strategic” philan-        easier. Historically long and bureaucratic
              thropic programs. This reflects the desire    migration procedures have been cut signifi-
              among many individuals to contribute          cantly, with the required forms to fill out
              to symbolic activities or activities that     reduced from 40 forms to 11 forms. The
              will show immediate impact. Many              time needed for migration permission has
              overseas indonesians like to show their       also been cut significantly from one to two
              success to people in their hometown,          months to 14 days. also, those seeking a
              and thus fund “visible” activities and        special passport for migration can now
              facilities                                    apply for it locally, rather than needing to
         	 •	 Indonesians,	 in	 general,	 do	 not	 trust	   travel to Jakarta, saving applicants both
              most of the existing organizations.           time and money.
              This is in large part due to the lack of          The government has also issued several
              accountability and transparency among         regulations to protect indonesians working
              most institutions.                            outside of the country, including regulation
                                                            no. 39/ 2004 and president instruction no.
         Government Regulatory and Tax Policies             6/2006, both addressing the placement and
              indonesia has several policies and regu-      protection of indonesian Workers. in addi-
         lations affecting migration and migrant            tion, the government established a national
         philanthropy. in general and to date, most         Coordinating Body for the placement and
         relevant policies focus predominantly on           protection of migrants (BNP2TKI or Badan
         encouraging migration. There are few regu-         Nasional Penempatan dan Perlindungan
         lations that directly encourage or facilitate      Tenaga Kerja Indonesia).
         charitable donations.                                  The government is also working to
              indonesia increasingly seeks to make          improve the competencies and skill of
         the country’s diaspora an engine of sustain-       migrants before sending them abroad. as
         able social development and community              a result of these initiatives, it is hoped that
         change. The government rightly recognizes          indonesian migrants will be able to secure
         the migrants’ current contributions to the         jobs with higher wages and thus increase
         economy of their respective communities.           the level of remittances returned to the
         Given the country’s continued weak eco-            country.
         nomic performance coupled with high rates              at the local level, local governments
         of poverty and unemployment, the govern-           in several regions are seeking to maximize
         ment continues to encourage economic               the impact of charitable funds from the
         migration and remittance sending. The              diaspora. When migrants return to their

         172                                                               asia pacific philanthropy Consortium

hometowns, special forums are held with          address Zakat giving, set at 2.5% of one’s
local government and migrant representa-         income, these regulations do not encourage
tives during which the community develops        Muslims to increase their charitable giving
plans and priorities for migrant engagement      beyond zakat.
in their home communities.
     There are no indonesian legal and tax                Recommendations
regulations specifically addressing diaspora          Despite the lack of data and analysis
philanthropy activities. in 1993, the gov-       on indonesian philanthropy, including
ernment recommended a policy (regula-            diaspora philanthropy, this paper attempts
tion no 7/1983) under which foundations          to provide some preliminary recommenda-
working on religious affairs, education,         tions to increase the quantity of diaspora
health and culture would not be taxed on         giving and to strengthen its role as a posi-
contributions. Unfortunately, the regulation     tive “agent of change” in the country’s social
was rejected by The House of representa-         and economic development.
tive in 1994. in a more recently proposed             as exhibited by this study, there is much
regulation (regulation no 10/1994), the          potential for indonesian diaspora giving.
free-tax application might be available to a     This potential is supported by strong religious
narrower set of organizations and types of       and cultural traditions which appreciate the
contributions.                                   importance of both giving and community.
     as noted earlier, recent changes in the     at the same time, the economic and social
Zakat collection and management could            problems faced by the country argue for an
have a significant impact on diaspora giv-       urgent response from all sectors, including
ing. regulation no 17/2000 and regula-           the indonesian diaspora.
tion no 38/199 include two important                  To achieve any measurable impact will
points: first, Zakat is defined as non-taxable   require a paradigm shift from traditional
revenue to organizations that receive such       “service” philanthropy to “social change”
contributions; and second, Zakat — given         philanthropy that addresses issues of social
to both organizations and individuals            justice.9 The concept of philanthropy for
— can be deducted from an individual’s           social justice goes beyond the provision of
personal taxable income.                         basic needs (e.g., food, clothing, food and
     although these and a few other regu-        shelter) of those living in poverty to address
lations support philanthropic activities in      the underlying and unjust systems and
indonesia, they are generally perceived as       structures that cause such poverty. While
weak and discriminative in nature, most          traditional philanthropy is often limited to
particularly because they apply only to          eradicating the symptoms of social injus-
islamic giving. non-Muslim communi-              tice, strategic philanthropy tries to elimi-
ties consider these regulations unfair and       nate its very cause.
seek similar policies governing their own             Charitable giving from indonesia’s
charitable contributions to assist the poor.     diaspora may be limited in volume, but
in addition, because these regulations only      there are opportunities to encourage more

Dede Rusdiana and Zaim Saidi                                                                173
Diaspora GivinG:
an agent of Change in asia pacific Communities?

         giving and to more strategically allocate          	 •	 Institute	 professional,	 modern	 man-
         or invest those contributions to promote                agement standards, with accountabil-
         social justice and economic development.                ity and transparency, to create trust
         The following preliminary recommenda-                   and confidence among potential con-
         tions suggest ways in which various actors              tributors.
         can promote and strengthen philanthropy            	 •	 Develop	 programs	 that	 balance	 the	
         for social change and justice:                          immediate needs of disadvantaged
         Government                                              individuals with the long-term welfare
                                                                 of migrant workers, their families and
              Government, including representatives
                                                                 their hometown communities.
         in indonesian and overseas in embassies,
                                                            	 •	 Promote	the	concept	and	use	of	chari-
         could consider the following actions:
                                                                 table giving for strategic, sustainable
         	 •	 Ensure	 better	 legal	 protection	 and	
                                                                 efforts, supporting long-term improve-
              services for indonesian migrant work-
                                                                 ment and social justice.
              ers. This could include providing faster
                                                            	 •	 Conduct	 or	 commission	 additional	
              service for preparing documents, pro-
                                                                 studies to understand the practice and
              viding complete and accurate informa-
                                                                 the potential of diaspora philanthropy
              tion to migrant candidates, and helping
                                                                 in indonesia.
              in disputes between migrants and their
              employers.                                    Diaspora Community
         	 •	 Develop	a	national	information	system	
              of indonesians living abroad. it will be      	 •	 Develop	 and	 strengthen	 diaspora	 net-
              easy for the government to monitor                 works among indonesians living in
              and mobilize people when there are                 other countries. This will strengthen
              clear and updated data.                            the migrants’ negotiating position and
         	 •	 Provide	 tax	 incentives	 for	 individuals	        improve their ability to advocate for
              and groups wishing to make charitable              rights and protection. strong networks
              donations, without consideration of                will also provide the organizational
              their religion, race, gender, etc.                 infrastructure through which to effec-
                                                                 tively engage in hometown develop-
         	 •	 Promote	 the	 concept	 and	 practice	 of	
                                                                 ment, as shown by the sulit air sepakat
              strategic philanthropy to migrants
              through comprehensive information
              programs and help to facilitate giving        	 •	 Promote	 and	 adopt	 a	 principle	 of	
              programs that address sustainable social           “teaching one to fish rather than giving
              change and development.                            fish.”
                                                            	 •	 Seek	 out	 feedback	 and	 input	 from	 a	
         NGOs and Civil Society                                  broad range of individuals and organi-
         	 •	 Advocate	for	policy	reforms	to	improve	            zations, researchers and academics, to
              general conditions for migrants and to             help strengthen philanthropic giving
              directly encourage charitable giving.              initiatives.

         174                                                               asia pacific philanthropy Consortium

                References                           najam, a. (2005). Potrait of a Giving Commu-
                                                         nity: Philanthropy by the Pakistani American
abubakar, irfan dan Chaider s. Bamualim, ed.             Diaspora. retrieved from http://www.pcp.
   (2005).Revitalisasi Filantropi Islam (revi-  on January 9, 2008.
   talization of islam philanthrropy) Jakarta:
   pBB Uin Jakarta dan FF.                           najam, a. (2007). Diaspora Philanthropy to
                                                         Asia, in Merz, Chen, and Geithner, Diaspora
angka kematian bayi (infant mortality rate)              and Development. Cambridge: Global
   (2006). retrieved from http://www.bps.                Equity initiative, Harvard University. on october 12, 2007.
                                                     saidi, Z. (2002). Membangun Kemandirian
Bappenas, 2007. Laporan Pencapaian Mil-                  Berderma: Potensi dan Pola Derma, serta
   lenium Development Goals Indonesia 2007               Penggalangannya di Indonesia (Developing
   (The indonesia Millennium Development                 self-reliance in giving: potential and pat-
   Goals (MDGs) progress report). Jakarta:               tern of giving and raising in indonesia).
   Bappenas                                              Jakarta: piramedia.
perantau membangun negeri (Home land                 __________ (2003). Sumbangan Sosial Peru-
    development by migrants). retrieved from            sahaan (Corporate social giving). Jakarta: on January 24,               piramedia.
                                                     __________ (2007). Ilusi Demokrasi: Kritik
Depnakertrans, D ppTKL (2007). retrieved                dan Otokritik Islam (Democracy illusion:
   from on               Critic and otocritic of islam) . Jakarta:
   november 9, 2007.                                    republika.
Garchitorena, v. p. (2007) Diaspora Philan-          van Bruinessen, M. (1995). Kitab Kuning,
   thropy: The Philippine Experience. retrieved         Pesantren dan Tarekat (The yellow book:
   from http://www.tpi.orgon December 28,               pesantren and Tarekat). Jakarta: Mizan.
                                                     Migrant Care. retrieved from http://www.
Hugo, Graeme (2007) Indonesia’s Labor          on January 20, 2008.
   Looks Abroad, retrieved from http://
   www.migrationinformation. org/profiles/           pKpU profiles. retrieved from http://www.
   display.cfm on December 28, 2007.           on november 9, 2007.

Huri, i. (2006). Filantropi Kaum Perantau            sumatera Barat profiles. retrieved from http://
   (Migrants philanthropy). Jakarta: pirame-   on november 9,
   dia                                                  2007.

Merz, C. and Geithner, p. (2007). Diaspora and       The Minang Usa. retrieved from http://www.
   Development. Cambridge: Global Equity        on november 9, 2007.
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Johnson, p. D. (2007). Diaspora Philanthropy:   on november 9, 2007.
    Influences, Initiatives, and Issues. retrieved   Fact sheet, Migration, remittance and Female
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    2007.                                                from       http://siteresources.worldbank.
Kurniawati & prihatna, a.a. (2005). Caring               org/inTinDonEsia/resources/fact_
   and Sharing: Pattern of giving in Indonesia           sheet-migrant_workers_en_jan06.pdf on
   Society. Jakarta: piramedia.                          December 28, 2007.

Dede Rusdiana and Zaim Saidi                                                                     175
Diaspora GivinG:
an agent of Change in asia pacific Communities?

         peluang Tenaga profesional indonesia di Luar            officials were given the opportunity to
             negeri Kian Terbuka (opportunity for                attend Dutch educational institutions. in
             indonesia professional worker to work               indonesia, these institutions were limited
             abroad are wide open) (2007, May 14)                in facility and curriculum, and covered
             Antara News. Jakarta.                               only the basic and middle levels. Hence,
                                                                 many indonesian students who had com-
         Mati rasa Yang Keterlalauan (The extreme
                                                                 pleted this curriculum were sent abroad to
            numb) (2007, september 4). Kompas
                                                                 continue their studies. These people, along
            newspaper, Jakarta
                                                                 with other educated people in indonesia,
         perbankan Belum serius (Banks institu-                  pioneered the issues and the struggle of
             tion havent seriously provided) (2007,              indonesian independence.
             september 14) Kompas newspaper
             Jakarta.                                        5    remittances between 2001 to 2003 in
         TKi ilegal (illegal indonesian migrant worker)          sukabumi decreased, as many migrant
            (2007, september 28) Kompas newspaper                workers from sukabumi were deported
            Jakarta.                                             back to indonesia because they lacked
                                                                 documents and was caused by the escalat-
         remiten sosial dan Buruh Migran perempuan               ing political situation in Middle East and
            (social remitances and female migrant                the sars epidemic in pacific asia.
            workers) (2008, March, 10) Kompas
            newspaper, Jakarta.                              6 The concept of generosity is not only well
         Dewan pimpinan pusat sulit air di Jakarta,            known to Muslims. Hinduism teaches the
            (Jakarta sulit air main council) (ed. May          concept as Dharmasastra and Puranasjuga,
            - July 2003). suara sas , Jakarta                  which conveys the same idea as zakat in
                                                               islam called datria datriun. The person
                                                               who has the right to accept such dharma
                              Notes                            is called danapatra. Buddhism has the
           1 Gotong royong is a voluntary, team social         similar concept of the ethic code, or sutta
             activity conducted by a community. The            nipata, which has five pillars. Confucian-
             most common activity is constructing or           ism also acknowledges money given, up to
             restoring public infrastructure such as           two-tenths of one’s wealth. in Christianity,
             roads, bridges or mosques/churches.               this share is defined as part of somebody’s
                                                               income, to be paid to one’s church for
           2     probability of dying between birth and        organization, maintenance, support for the
               exactly one year of age expressed per 1,000     minister, program promotion and to help
               live births.                                    the poor (Karim, 2003).
           3 The annual number of deaths of women
             from pregnancy-related causes per 100,000       7 some Muslims consider shodaqoh (char-
             live births                                       ity) that God counts (rewarding) as shod-
                                                               aqoh given with sincerity; this means it
           4    Politik Etis was created by the Dutch
                                                               shall be not mentioned afterwards, espe-
               colony in 1901 to repay for the misery and
                                                               cially before those receiving the charity,.
               suffering experienced by the indonesian
                                                               However, some Muslims believe that men-
               people during Colonialism. Through this
                                                               tioning the charity, as long as it is not in
               policy, some indonesian youths from aris-
                                                               purpose of offense, is needed for syiar—as
               tocratic families and Dutch government
                                                               a role model.

         176                                                                asia pacific philanthropy Consortium

 8     some members of sas establish inde-           9 For further discussion please refer to pri-
     pendent foundations to fund social and            hatna, “Filantropi dan Keadilan sosial di
     economic activities. Most of these are            indonesia” in Revitalisasi Filantropi Islam:
     private foundations, created on behalf of a       Studi Kasus Lembaga Zakat dan Wakaf di
     family or a certain group. in this case, the      Indonesia, Chaider s. Bamualim dan irfan
     role of sas is to provide the foundations         abubakar (eds), (Jakarta, Center for Lan-
     with information regarding hometown               guages and Culture and The Ford Founda-
     needs and priorities.                             tion, 2005).


              Case Study on Strategic Diaspora Philanthropy:
                    Pos Keadilan Peduli Umat (PKPU) 1
     Pos Keadilan Peduli Umat (pKpU)                ond, recognition that government aid for
began as an official institution or board of        poor people, and particularly for victims of
the islamic political party “partai Keadilan        conflict and natural disaster, was not opti-
(pK).” This board acted as the social Wel-          mal; and third, a belief that many islamic
fare Department of pK, initially respond-           foundations did very little to truly help the
ing to the needs of the victims of the often        victims of disasters or social conflict.
violent social conflicts in ambon, north                Considering the great potential of
Maluku, poso, and other locales. Under              zakah, infak, sadaqa, and waqaf (ZisWaF)
the pK, this board was named pos Terpadu            —forms of islamic compulsory and volun-
pelayanan Masyarakat (poster Masyarakat).           tary aid — pKpU sought official permission
Following independence from pK, its name            from the Ministry of religion to become
was changed to pos Keadilan peduli Umat             an approved Zakat collector. in october
(pKpU). as a pK board, poster Masyar-               2001 it received permission as amil Zakah
akat raised around iDr 3,5 billions (Us$            institution, Lembaga amil Zakat (LaZ)
411,764) per year from pK supporters and            through decree no. 441.
the broader public.
     Given its fundraising success among            Vision and Mission
the general public, pK determined that its              in 1999, when the board was estab-
social and community activities would be            lished, the vision was “to be one of the
better served by creating an independent            institutions in indonesia which provide
non-governmental organization not affili-           care for the community’s welfare through
ated with a political party, and pKpU was           trusteeship and professional manage-
officially established as an independent            ment.” By 2002, in concert with its growth
foundation in December1999. There were              in activities, pKpU’s vision became more
three key motivations in establishing an            ambitious. The phrase “to be one of the
independent organization. First, the level          institutions in indonesia which provide
of donations from the general public; sec-          care” was changed to “to be the fore-

Dede Rusdiana and Zaim Saidi                                                                   177
Diaspora GivinG:
an agent of Change in asia pacific Communities?

         most institution in indonesia to promote        can monitor pKpU activities as well as the
         humanitarian care through trusteeship           use of their own ZisWaF contributions
         and professional management” (pKpU,             to pKpU. pKpU leadership believes that if
         2007).                                          they manage contributions in an open, pro-
             pKpU describes three key aspects of         fessional, fair, and transparent manner they
         its humanitarian mission. First, to reduce      will enhance donor trust and that ultimately,
         human suffering through education, empow-       charitable support will increase.
         erment, and communication. second, to be             The pKpU governance structure adheres
         an intermediary or facilitator between phi-     to regulation no. 16, which provides that
         lanthropists and the poor by collecting and     a foundation should consist of a control-
         distributing ZisWaF and other humanitar-        ler, a supervisor, and board. at present, the
         ian contributions. Third, to build a partner-   pKpU organizational structure includes a
         ship among government, private companies,       director, a secretary, an administration divi-
         nGos, and other social institutions -- both     sion, an information and publication divi-
         within indonesia and overseas.                  sion, accounting division, and program staff
             Following its vision and mission, pKpU      members. pKpU recently added a market-
         is committed to fostering and nurturing         ing division and is developing a dedicated
         the philanthropic impulse of the indone-        program division. in the next upgrading,
         sian people. That commitment has become         these divisions will be adjusted to meet
         the background of its slogan “Menggugah         iso 9001/2000 standards. in addition to
         Nurani Menebar Peduli” (Touch the Feel-         its indonesian operations, pKpU has agen-
         ing to spread Caring). There is a perception    cies located in Germany, the United states,
         among many in indonesia that indonesians        sweden, the netherlands, australia, and
         have lost their compassion and commit-          the Middle East.
         ment to help others. Through their slogan
         and activities, pKpU truly hopes that many      Collecting Donations
         philanthropists will be motivated to lend            pKpU employs several methods to col-
         both heart and hand to aid the poor.            lect ZisWaF and other contributions. First,
                                                         pKpU provides monthly Quran readings
         Organizational Philosophy and Structure         in private corporations to help build a car-
             The cornerstone of pKpU’s manage-           ing, contributing Muslim community. sec-
         ment vision is transparency. The organiza-      ond, pKpU goes door-to-door to promote
         tion seeks to be open and transparent in all    and collect ZisWaF donations. Third, it
         aspects including accounting, administra-       undertakes special initiatives such as peduli
         tion, and program implementation. pKpU          Bencana nasional (national Disaster Care
         adopted the iso (international organiza-        program) to raise funds for special needs.
         tion for standardization) 9001/2000 quality     Fourth, pKpU regularly advertises its pro-
         management system as its principal standard.    grams and products to the public through
         in addition, pKpU maintains a frequently        its website, mass media, banners, pam-
         updated website through which the public        phlets, etc.

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     pKpU collects donations both nation-      from elementary through college level.
ally and internationally, among the            Third, DiKLaT, a program serving partic-
diaspora. The greatest volume of donations     ularly vulnerable children refugees, disaster
is received in response to natural disasters   victims, orphans, and the poor.
in indonesia; there is also strong support         Healthcare
for the victims of human conflict. overseas
                                                   The health initiative includes two main
donations are significant; contributions for
                                               programs, Klinik peduli/ Care Clinic, a
the last six years are: iDr 3,4 Billion (Us$
                                               program that provides health clinics to the
373,626) in 2006, iDr 4,5 Billion (Us$
                                               poor and in neglected areas; and pro smil-
500,000) in 2005, iDr 1,7 Billion (Us$
                                               ing (program Kesehatan Masyarakat Kelil-
178,947) in 2004, iDr 1,2 Billion (Us$
                                               ing), a mobile health program that provides
141,176) in 2003, iDr 500 Million in
                                               community health services with low cost
2002, and iDr 450 Million (Us$ 52,491)
                                               and wide reach.
in 2001. These funds are raised from
diaspora populations in the United states,         Economic development.
Canada, Germany, Japan, australia, United          The main initiative in this sector is
arab Emirates, the netherlands, sweden,        prospEK (program sinergi pemberdayaan
Qatar, south Korea, Brunei, Malaysia, sin-     Ekonomi/Economic Empowering), a pro-
gapore, pakistan, England, norway, saudi       gram that empowers the poor through
arabia, Kuwait, and sudan.                     micro economic efforts. This program
     in an exceptional move for indonesians    often supports traditional farmers, handi-
residing overseas, in 2008 pKpU has been       craft workers, cattle workers, “ojek” drivers
trusted by the indonesian-padang com-          and fishermen.
munity to manage and distribute their              Religious speech
donated funds of around iDr 100 million
                                                   There are also three main programs in
(Us$ 11,112).
                                               this sector: first, KKD (from “Kuliah Kerja
Programs and Activities                        Da’wah,” referring to practices of religious
    Based on the organization mission,         speech) to improve preachers’ skills in post-
pKpU has developed four long-term pro-         disaster areas; second, DUTa (from “Dak-
gram areas that are funded by diaspora         wah nusantara,” national religious speech),
and local contributions: education, health-    providing preachers to remote areas of
care, economic development, and religious      indonesia; and third, Muslim vision, the
speech. Each of these is summarized below.     regular islamic teaching program for execu-
    Education                                  tives and professionals.
    There are three main foci in the educa-
tion program. First, sWaDaYa, a scholar-       Distribution of Donations
ship program for poor students and those           pKpU collects and distributes both
in orphanages from elementary to college       discretionary and designated contributions.
level. second, sWaDEsi, a scholarship          That is, some -- discretionary -- donations
program for high-achieving students, also      are given to pKpU to distribute accord-

Dede Rusdiana and Zaim Saidi                                                            179
Diaspora GivinG:
an agent of Change in asia pacific Communities?

         ing to the organization’s own perception                    mahera, ambon, Buru, seram, and
         of needs. pKpU will often distribute these                  Kei;
         undesignated contributions to its commu-             	 •	   Medical	 support	 for	 the	 refugees	 in	
         nity development and economic programs.                     Bengkulu, poso, parigi, and palu;
         The recipients of other -- designated -- con-        	 •	   Food	 support	 for	 the	 community	 in	
         tributions are specified by the donor. in the               ambon, Buru, seram and Kei, Ternate,
         latter case, pKpU maintains the trust of                    Tidore, Bacan, Makian, Galela, and
         the donor by committing itself to deliver                   Halmahera, and for the refugees in
         the donation as specified by the donor. For                 Bengkulu, poso, parigi, and palu;
         example, if the donor specifies that his dona-       	 •	   A	public	food	center	in	12	locations	in	
         tion must be given to the victims of social                 Bengkulu;
         conflict in ambon, pKpU will do so. The              	 •	   Support	 and	 reconstruction	 in	 dis-
         same treatment also applies to waqaf assets.                aster areas of purworejo, Yogyakarta,
         For example, if the donor wants to give his                 Cilacap, Lumajang, sumatera barat,
         waqaf to maintain an ambulance, pKpU                        aceh, Gorontalo, pandeglang and
         will do exactly as indicated. These dona-                   Madura;
         tions are also called “dependent funds.”             	 •	   Food	 and	 health	 support	 for	 the	
              in distributing donations to some                      sampit's refugees in East Java;
         areas, pKpU works together with third par-           	 •	   Clothing	 for	 the	 refugees	 in	 Buton,	
         ties such as Dompet Duafa, Darut Tauhid,                    Ternate, ambon, pulau seram, Moro-
         LaZis al-azhar, Medical networking,                         tai, and Banten.
         MEr-C, and pKs.                                          The rehabilitation program also has sig-
              From the total contributions received           nificant accomplishments including
         by pKpU, around 85% is distributed for               	 •	 Scholarships	in	West	Sumatera,	Beng-
         relief programs. a separate dependent fund                kulu, north Maluku, and Maluku;
         is established for this purpose. The remain-         	 •	 Donations	to	the	orphanage	in	North	
         ing 15% is used for community develop-                    Maluku and ambon;
         ment programs. From this 15%, around                 	 •	 Extra	food	aid	for	elementary	students	
         70% will be used for programs in health,                  in Bengkulu;
         education, and religious speech; the other           	 •	 Refugees’	 mental	 and	 spiritual	 health	
         30% supports a community economic                         support in Maluku, north Maluku,
         empowering program (revolving fund).                      Central sulawesi and Bengkulu;
              Impact                                          	 •	 The	provision	of	20	Da’i	(Islam	preach-
              pKpU’s impact has been impressive,                   ers) to the hinterland in north Maluku
         providing basic services and aid to vulner-               and Maluku;
         able populations throughout indonesia.               	 •	 Rehabilitation	 of	 religious	 facilities	 in	
              Through its relief program or humani-                Bengkulu and for refugees in north
         tarian rescue mission, it has provided                    Maluku;
         	 •	 Mobile	 health	 care	 for	 the	 refugees	 in	   	 •	 A	 rehabilitation	 house	 for	 earthquake	
              Ternate, Bacan, Tidore, Makian, Hal-                 victims in Bengkulu and refugees in

         180                                                                   asia pacific philanthropy Consortium

     north Maluku; and school rehabilita-                tractors and boats; providing a coconut
     tion in Banten and Bengkulu.                        machinee to Galela, north Maluku,
     achievements of the community devel-                and empowering handicraft workers in
opment programs include:                                 Yogyakarta; and providing alternative
	 •	 Distributing	 sacrifi  	ced	 animal	 to	             education for the refugees in north
     Maluku, north Maluku Utara, aceh,                   Maluku in collaboration with et Forty.
     East nusa Tenggara, Yogyakarta, East
     Java, Wet Java, Jakarta, Bali, and south-                          Notes
     ern sulawesi;                                    1 adapted from Chaider s. Bamualim dan
	 •	 Establishing	 several	 health	 clinics	 --	        Tuti a. najib, “pos Keadilan peduli Umat
     'al-aqsha' in ambon, 'sholahudin' in               (pKpU): Fenomena Educated Urban Mus-
                                                        lim dan revivalisasi Filantropi”, dalam
     Ternate, 'peduli' in poso, and a health
                                                        revitalisasi Filantropi islam, (Jakarta,
     clinic in Central Jakarta;                         pusat Bahasa dan Budaya Uin, 2005), and
	 •	 Empowering	farmers	in	Bekasi	through	              interview with Direktur Kemitraan Luar
     the provision of mills, distribution of            negeri, Tomy Hendrajati.

     Dede Rusdiana
     Dede rusdiana is a researcher of the public interest research and advocacy Center, an
     independent non-profit resource organization that offers services in training, advocacy,
     and information dissemination in the fields of philanthropy and enhancement of civil
     society organization in indonesia. He had conducted research on health, social, political
     and economic issues. in 2006 he was involved in national monitoring of the indonesia
     government employees recruitment process and with other writers he published books
     about bureaucracy reform, especially in government employee’s recruitment process.
     He’s also one of the founders of LKps (Lembaga Kemitraan pembangunan sosial/social
     Development partnership) a non-governmental institution that serves in the field of civil
     democracy and development. along with the uprising of local autonomy, this institution
     struggles to create strategic partnership with numerous parties to build Economic
     Construction that molds with social Construction.Dede is a 2005 Miriam Budiarjo
     research award finalist and graduated from social Welfare science Department, Faculty
     of social and political science, University of indonesia, in Jakarta in 2003.

Dede Rusdiana and Zaim Saidi                                                                     181
Diaspora GivinG:
an agent of Change in asia pacific Communities?

               Zaim Saidi
               Zaim saidi currently serves as the chairperson of the public interest research and advocacy
               Center (piraC) and actively participates in various activities that promote philanthropy
               and encourage resources mobilization in indonesia. His many works include, his having
               written and spoken extensively on the subject of non-profit sector management, civil
               society, and nGo accountability, among others. He has also successfully published several
               books related on nGo, consumer, and muamalat issues. Zaim has also been an executive
               director of the Lembaga Konsumen Jakarta / Jakarta Consumer institute (LKJ) since
               2001 and has been the head of the board of directors of the Yayasan Manusia indonesia
               / indonesian people Foundation (YasMin) since 1998. He successfully completed his
               post graduate studies in public affairs (Hon.) from Department of Government and
               public administration in the University of sydney in 1998 and islamic Muamalat, Dallas
               College, Cape Town, 2005-2006.

         182                                                                  asia pacific philanthropy Consortium

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