THE POWERS OF CORPORATE SOCIAL RESPONSIBILITY (CSR) TO RAISE THE SMALL MEDIUM ENTERPRISES IN INDONESIA

Abstract

At this time the culture of Pancasila democracy in the country of Indonesia began to erode due to the impact of globalization and I.R 4.0. The life pattern of the nation and state has been influenced by the westernization style. The changes impact to Indonesia's multicultural society which increasingly forgets the noble values of the nation, culture, norms, customs that have been passed down by ancestors. The nation's generation is the next bet, where the culture or noble values that are built into the democratic system have led to the understanding of liberalism, individualism and capitalism. The serious and critical threat of understanding Pancasila democracy based on mutual cooperation, kinship, togetherness, deliberation reached consensus. The government worked hard in the Nawacita Program to reduce the number of poor people so far but sadly, it has not been able to maximize the gap between the poor and the rich. Funds set aside for corporate CSR are one of the obligations that have been regulated in positive law in Indonesia. This CSR arrangement has been regulated in several laws in Indonesia. The figures reach hundreds of billions to trillions. Based on data from the Central Statistics Agency (BPS) the open unemployment rate (TPT) per August 2018 was recorded at 7 million people, equivalent to 5.34% of the total workforce of 131.01 million people. BPS data also showed that last year's TPT increased compared to the February 2018 position of 6.87 million people or an increase of 130,000 people. BPS also classifies, TPT originating from vocational education is 11.24%, high school graduates are 7.95%, Diploma I / II / III graduates are 6.02%, University graduates are 5.89%. Middle school graduates are 4.80%, and elementary school (SD) graduates are 2.43%. Large factories and companies in Indonesia are currently facing the 4.0 Industrial Revolution and political years. Many have laid off because of the increasingly worrisome economic conditions, even many companies are out of business. With this large number of unemployed people.  Even more important is how the CSR program that has been standardized in the Law can be a force in accelerating the increase of MSMEs as the government of Joko Widodo-Jusuf Kalla in 2016 launched a Micro, Small and Medium Enterprises (MSMEs) as an important pillar of Indonesia's economy in the face of the era of the ASEAN Economic Community (MEA), and now Jokowi's government got the second period to solve the problem of Indonesia's nation's inequality and unemployment living in a world-paradise country based on Pancasila democracy.

Keywords: Pancasila, Good Corporate Governance, Culture, Mindset, Life Style