According to a recent World Bank report, inequality is rising fast in Indonesia. The Gini coefficient has risen from 30 in 2000, to 41 in 2013. Besides inequality between the different income classes, the report also highlights the divide between rural and urban areas. Amongst poor urban children, only 2% experienced the triple whammy of poor housing, unclean drinking water and poor sanitation while 18% of the poor rural children experienced all three, with 27% of them experiencing both poor housing and poor sanitation.
In 2016 the government began considering the possibility of imposing mandatory CSR among all companies in the nation, with mandatory contributions of 2% – 3% of total profits.
It is hoped that the recommendations of this paper will bring the lives of rural people in Indonesia closer to the dream of a better living and sustainable lifestyles, as envisioned in the SDGs.
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