Author(s): Ratna Artha Windari, Yetty Komalasari Dewi, Andri Gunawan Wibisana
Although the provisions of Corporate Social Responsibility (CSR) in Indonesia have been enforced since 2007 through Law Number 40 of 2007 on Limited Liability Companies, the results of previous research suggest that the implementation of CSR in Indonesia is relatively lower than other ASEAN Countries. This condition indicates that there are problems in the regulation of CSR in Indonesia. This study aims to evaluate CSR regulation in correlation to leverage the implementation of CSR in textile and garment manufacturing companies and reviewing the concept of self-regulation which is the application of reflexive law theory as an alternative for reformulating CSR regulation in Indonesia. This paper started by discussing the regulation of CSR in Indonesia, lack of disclosure of CSR in textile and garment manufacturing companies, evaluating mandatory CSR regulation, and formulating of CSR regulation using the concept of self-regulation through comparisons from Australia. This paper is a doctrinal with a comparative and conceptual approach. Reflexive law is a middle way for the dilemma of CSR regulation in Indonesia, where companies are given the obligation to regulate themselves in giving a role, especially for environmental issues that arise from the activities of textile and garment companies in Indonesia.