Amrul Partomuan Pohan


Through the development of Legal Theory that started from
the period of Ancient Rome, when the legal concept of
Corporation was created and then admitted as “independent
(separate) legal entity” that may conduct legal action similar
to individual. The resemblance of Corporation with individual
continued in Legal Theory with the concept of “Corporate
Crime”, and further with the concept of “Good Corporate
Citizen”, in which the Company is expected to also pay
attention to the interest of its surrounding community, and the
environment (not only for its own interest).
The Company Law uses the term TJSL instead of CSR to
emphasize the important role of the Company in participating
in the environmental management. The Company Law
considers that the Company responsibility upon the natural
resources is fundamental. Therefore, the Company Law
provides that the implementation of TJSL is compulsory for
the Company which manage or affect natural resources.
The Company Law underlines the requirement for TJSL that
has been provided under certain prevailing laws, among others,
laws on Industry, Environment, Prohibition on Monopoly
Practices and Unfair Competition, Human Rights, Forestry,
Employment, State Owned Company, Water Resources,
Mineral Mining and Coal. The Company Law provides that
TJSL should be incorporated in the business plan and budget,
and the budget should be determined by the Company with
due regard to the reasonableness and fairness. The
implementation of which should be included in the Annual
The Company which business activity does not manage nor
affect to the natural resources may also implement the TJSL.
Basically, the Company Law urges each Company to
voluntarily implement the TJSL, and for which the Company
may be awarded with an Award as appreciation from the
authority, provided further that the TJSL should be included
in the annual business plan and budget.

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