The present paper introduces the work done by T'zu-chi in Jakarta, where the organization regulated with the support of the Indonesian authorities the Red River, built“Great Love Village”for resettled families, and distributed 50 000 tons of rice in cooperation with Taiwanese farmer associations. The meaning of the river regulation work is comprehensively dis- cussed as follows: 1) Charity was encouraged in order to achieve a positive distribution of wealth: The Indonesian branch of T'zu-chi enabled the rich who joined the project in person to experience the boundless warmth of helping people in need and to demonstrate to an even greater degree the meaning and value of life. 2) Boundaries between different religions were overcome: There have been several incidents of anti-Chinese disturbances and terrorist bombings in Indonesia. Nevertheless the Chinese members of the Indonesian branch of T'zu-chi did not use their charitable work as a means to propagate their own religion. Quite the contrary, they even built a mosque in“Great Love Village.”This broadness of mind came from the Buddhist wisdom of egolessness and accomplished Eastern civilization which“supplants conflict through acceptance and resolves hatred by way of great love.” 3) Hatred between different races was resolved: Anti-Chinese disturbances have been repeatedly taken place in Indonesia. However, the Indonesian government has paid attention to this welfare activity by Chinese T'zu-chi members and it furthered friendship among the populace showing a way for peaceful conflict resolution between the Chinese community in Indonesia and the Malay people. Herein lies its meaning. 4) It was a model for social welfare achieved through the cooperation between religious organizations and the government: In the case of the plan to regulate the Red River, the problem was first discovered by T'zu-chi which suggested a solution, on one hand offering sources from the side of the public, on the other hand trying to get the support of the government so that the problem could be solved once and for all through cooperation. This provided a model for social welfare achieved through the cooperation between the government and the public. Thinking in terms of“rights”aims at guaranteeing social services, but it has to be supported by the“selflessness”of the donors and the“gratitude” of those who receive benefits. Looked at it from this angle, the T'zu-chi organisation did succeed in establishing the new concept of“supplanting the theory of rights with the theory of gratitude.”