Many people still think that TJSL and CSR are the same program. In fact, the two are different, particularly in terms of regulations and approach. While the concepts are similar since both relate to corporate responsibility, their implementation in Indonesia has a specific context.
What exactly are TJSL and CSR?
CSR (Corporate Social Responsibility) is a company’s commitment to benefiting the community, the environment, and the local economy. In Indonesia, CSR is mandatory, particularly for companies whose activities have a significant impact on the environment. Therefore, CSR is not viewed merely as a social activity, but as part of a business’s responsibility that must be carried out in a focused and sustainable manner.
Meanwhile, CSR (Corporate Social Responsibility) is better known as a global concept that is voluntary in nature. Many companies implement it to demonstrate business ethics, social concern, or sustainability, but the regulatory framework is not as strict as that for TJSL in Indonesia.
Key Differences Between TJSL and CSR You Need to Know
There are several differences between the two, namely in terms of regulations, scope, and reporting.
Regulations
- TJSL: Regulated by the Indonesian government and mandatory.
- CSR: More flexible, depending on company policies or international standards.
Scope
- TJSL: Tailored to local needs and the national development context.
- CSR: Typically follows global practices and varies by country or industry.
Reporting
- TJSL: Follows official reporting guidelines in Indonesia; it is more structured and measurable.
- CSR: Reports are generally internal or follow specific global standards.
In short, the difference is that TJSL is a legal obligation in Indonesia, while CSR is a more flexible global practice.
TJSL must be implemented by all corporations conducting business activities in the field of, and/or related to, natural resources, as mandated by Article 74 of Law No. 40 of 2007 on Limited Liability Companies.
Now that we understand the fundamental differences, let’s focus on TJSL, as this is the primary obligation and standard for companies in Indonesia.
The Four Most Important Pillars of TJSL
CSR programs in Indonesia are typically implemented with four main, mutually complementary focuses: the Social Pillar, which aims to improve the quality of life for communities in the areas surrounding the company; the Environmental Pillar, which aims to responsibly manage the impact of the company’s operations on the environment; the Economic Pillar, which focuses on the economic empowerment of communities; and the Legal and Governance Pillar, which ensures that all programs are conducted in accordance with regulations, with integrity, and in a measurable manner.
These four pillars are designed to ensure that TJSL programs are not merely a formality. Thus, in addition to supporting sustainable development, these four pillars also help companies strengthen public trust, maintain their reputation, and reduce the risk of social conflict.
Benefits of TJSL
The TJSL program benefits not only one party but both the community and the company. TJSL has a positive impact on the community in the form of improved skills, economic opportunities, significantly better health, and a better-protected environment, while for companies implementing the TJSL program, it can strengthen their reputation, support legal compliance, and increase the trust of stakeholders and investors.
TJSL Measurement Tools
There are various tools for measuring TJSL, but one of the most commonly used is SROI (Social Return on Investment). Using this measurement method, companies can calculate the amount of social benefit generated for every rupiah spent. In addition to SROI, another commonly used measurement tool is the Community Satisfaction Index (IKM), which measures the level of community satisfaction with the TJSL programs that have been implemented; there is also ESG to assess the effectiveness of programs more comprehensively.
Now, Eduvokasi friends, you know that TJSL and CSR are not the same thing. CSR is a global standard whose implementation is flexible depending on the company’s context, whereas TJSL is a structured, impact-oriented legal obligation in Indonesia.
The main focus of TJSL is to ensure that companies make tangible contributions to society and the environment through four main pillars and clear measurement tools.
Now you’re no longer confused about the difference between TJSL and CSR, right?
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