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All Journal JURNAL HUKUM Lex Publica
Putra, Tria Sasangka
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Religion Humanities Law, Crime, Criminology & Criminal Justice Social Sciences

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Transparency in Ensuring Governance and Accountability of Non-Profit Institutions: Lessons from Malaysia and India Putra, Tria Sasangka; Akbar, Bahrullah; Suwarno; Friska, Renny; Rengasamy, Dhanuskodi; Noorjahan, Momin
Lex Publica Vol. 11 No. 1 (2024)
Publisher : APPTHI

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58829/lp.11.1.2024.258

Abstract

This research examines the transparency and governance aspects of foundations in Indonesia as nonprofit organizations, and compares them with foundation regulations in several countries to gain insight into their legal structures, obligations, and social responsibilities. The study addresses three key questions: first, how foundations are structured within Indonesia's legal framework, focusing on governance; and second, a comparative analysis of how Malaysia and India regulate foundations, their responsibilities, and operational frameworks. The research also evaluates how foundations can improve their societal contributions while ensuring transparency and accountability. Using a qualitative approach with a normative and comparative design, the study analyzes Indonesia's regulatory framework under Law No. 28/2004 and compares it with international practices to identify best practices. The findings reveal that Indonesian foundations must uphold transparency and accountability, including the obligation to produce annual reports that are auditable and subject to strict oversight to prevent fund misuse. The conclusion highlights that while regulations differ across countries, all emphasize the importance of transparency and accountability to ensure foundations operate effectively and contribute positively to society. Adhering to these principles is essential for the sustainability of foundations and enhancing their social impact.
Legal Implications of the Articles of Association in Foundation Governance Putra, Tria Sasangka; Akbar, Bahrullah
Jurnal Hukum Vol 40, No 2 (2024): Jurnal Hukum
Publisher : Unissula

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30659/jh.40.2.278-290

Abstract

Foundations play a significant role in supporting social missions, and understanding their legal obligations, as stated in the Articles of Association, is essential to ensuring their sustainability. This research examines the legal framework governing foundations in Indonesia, specifically focusing on Law Number 28 of 2004, which outlines the requirements for foundation establishment and operation. The study uses a qualitative, normative juridical approach to analyze the legal implications of mismanagement in foundation operations that deviate from the Articles of Association. The research highlights how non-compliance with these guidelines—especially the Articles of Association—along with the failure to submit financial reports and adhere to governance standards, can lead to serious legal and socio-economic consequences. The findings emphasize that mismanagement can damage a foundation’s credibility, cause internal conflicts, and result in legal claims from stakeholders. The study also explores the importance of effective government oversight, particularly by the Ministry of Law, in ensuring foundations comply with legal regulations. To address violations, the research suggests several approaches, including internal resolutions, legal reporting, and stronger supervision. Its further advocates for increased legal awareness and training for foundation managers to prevent violations and safeguard the foundation's integrity.
Co-Authors Bahrullah Akbar Friska, Renny Noorjahan, Momin Rengasamy, Dhanuskodi Suwarno