10
CHAPTER II
BACKGROUND
II.1 Education Foundation in Indonesia
Education
foundations
in Indonesia
are
legalized
under
the
Law
of the
Republic
of Indonesia
on
Foundation
(LRIF)
number
28
of 2004,
which
was
a
revised
version
from
that of number
16
of 2001.
It is stated
there (LRIF,
2001
p.
1)
that
the
so-called
Foundation
is
a
legal
board
with
assets
separated
from
and
only
used
for
a
certain
social,
religious,
and
humanity
purposes,
which
does
not
have
further
members.
LRIF
number
28
of
2004
revises
only
some
articles
of
LRIF number 16 of 2001, so most articles of the older version are still
in effect.
Foundation
is
a
non-profit
making
organization.
This
is
clear
from
Article
5
of
the
Law
(LRIF,
2001
p.
1)
stating
that
“the
assets
of
a
foundation,
being
in the form of money,
goods, and other assets obtained
by the foundation
on
the
basis
of
this
Law,
shall
not
be
transferred
or distributed
either
directly
and
indirectly to patrons, executives, and supervisors, employees, or other parties
having
interests
in
the
relevant
foundation.”
Furthermore,
Article
6
(LRIF,
2001
p.
1)
stipulates
that
every
foundation
is
obliged
to
pay
all
cost
or
expenses
spent
by
elements
of the foundation
in
the
framework
of executing
the
tasks
of the
foundation.
For
all
its
expenses,
as
stated
in
Article
26,
“…
assets
of the
foundation
can
be obtained
from
donations
or assistance
which
are
not
binding,
property
donated
for religious
or community
use (wakaf),
grants,
testament
grants,
and
other
sources
not
contravening
the
article
of
association of
the
foundation
and/or
laws in force.”
It is obvious
that foundations,
running
formal
or non formal
education
ranging
from
pre-school,
elementary,
secondary
to tertiary
education
institutions, are
not
profit-making,
on
the
one
hand,
but
self-supported
organizations,
on the other hand.
An
education
foundation,
one
of
the
forms
of
foundations
stipulated
by
the
above
Law,
is
a community-based
organization
running
education
undertakings both
in
the
form
of
non-formal and
formal schools. The
schools
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