“Of Geckos and Crocodiles: Evaluating ’s Corruption Eradication Efforts”

Michael Buehler Postdoctoral Fellow in Modern Southeast Asian Studies at the Weatherhead East Asian Institute, Columbia University

November 23, 2009

Co-Sponsored with CSIS

Indonesia’s anti-corruption measures these efforts have been successful. All began 10 years ago with the Clean of the anti-corruption agencies have Government Law, the first severe shortfalls. For example, the comprehensive act that clarified the National Ombudsman has no authority definition of corruption and outlined the to compel the government to follow up charges and procedures for prosecution. on its reports and recommendations, and Over the years, several additional laws has little political support. The Judicial and regulations were issued which Commission was stripped of its established a Corruption Court, a oversight powers in 2005 through a Judicial Commission, and a National decision by the Constitutional Court. In Ombudsman Commission. When general, Mr. Buehler said, the anti- President Yudhoyono came into office, corruption programs have not been well he established broad corruption socialized within the government. eradication programs, including a set of instructions on anti-corruption measures The Corruption Eradication Commission for all state institutions, and gave special (KPK) is the main organization tasked assignments to various ministries to with combating corruption in Indonesia. address corruption. In 2004, he Though it was established in 2002, the established the national Action Plan for commission did not begin work until the Eradication of Corruption, which 2006. The KPK handles around 30 works both to prevent corruption percent of Indonesia’s corruption cases, through transparency and empowerment, and has a 100 percent conviction rate. as well as repress it through punitive However, the KPK has come under measures. attack in recent months; in May, its head, Antasari Azhar was arrested on Thus, within seven years of the fall of charges of murder, and Commissioners , Indonesia had a comprehensive Hamzah and Rianto were also arrested framework for addressing corruption. on evidence from the Police that The question, then, is whether or not appears to be fabricated. President

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Yudhoyono has criticized the work of consistently since the introduction of the Commission, and the National elections and brought about new forms Parliament has delayed passage of a and patterns of corruption. stand-alone law designed to legitimize the Corruption Crimes Court. Thus, in order to effectively address corruption, comprehensive civil service, Despite these attacks, the Indonesian judiciary and police reforms are public is squarely in favor of the KPK. necessary. Singapore and Hong Kong Because of the public outcry, Professor both took strong stances against Buehler said, President Yudhoyono and corruption, and while the issues faced by Parliament worked to pass the a country as large and diverse as Corruption Crimes Court Law of 2009. Indonesia are more complex than those The law extends the Corruption Crimes experienced by a city-state, the lack of Court to all 33 provinces, but also allows resources available to fighting corruption career judges to comprise the majority of in Indonesia is striking compared to both the Corruption Panels, whereas Singapore and Hong Kong. Ultimately, previously the law ensured that panels political leadership is crucial to consisted of a majority of ad hoc judges eradicating Indonesia’s widespread and recruited from outside the judiciary, endemic corruption. While President which is itself beset with corruption Yudhoyono has taken steps toward issues. developing good governance and combating corruption, Professor Buehler Despite Indonesia’s current corruption said, his words are often stronger than issues, Professor Buehler said, the his actions. With respect to the KPK, metrics used to measure corruption show Buehler said, there has been a pattern of that, looking back over recent years as a withdrawing his support when the whole, Indonesia has improved. Various commission appeared to finally have high-level prosecutions for corruption some successes. It remains to be seen have gone forward, a reform of the tax whether President Yudhoyono will live system is underway, and the number of up to his image as a reformer. days to open a business has been reduced. Additionally, the perception of Questions and Answers government effectiveness in combating corruption has improved. However, the Q: How does Indonesian law define majority of corruption crimes still go corruption? unpunished, civil service reform remains largely ignored, the judiciary has yet to A: Indonesia uses the World Bank be reformed, and the abuse of power by definition of corruption, which is the members of the political establishment abuse of public office for private gain. has not been addressed. Additionally, However, the country is facing new with decentralization whole new levels forms of corruption beyond the of corruption have emerged on the traditional bribery, especially in relation regional and local levels which also must to elections and political party financing. be addressed. Moreover, with democratization comes the rise in the Q: What has been the impact on “business of politics”, which has risen voting?

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A: Voters have demonstrated that they A: Usually the World Bank tries to will still vote for candidates jailed for measure corruption and good corruption, and under Indonesian law, governance through specific metrics. candidates convicted of corruption can However, success can also be defined by still run in elections if their jail sentence the fact that the KPK still manages to was less than five years. arrest and convict people on corruption charges. Q: How was the KPK originally established? Why has the power of the KPK been weakened?

A: The KPK was established as a condition of the IMF bailout – Indonesians did not want it initially. The KPK has been weakened because it was so successful, and entrenched interests began working to marginalize it.

Q: What explains the public support of the KPK?

A: Support of the KPK became widespread after it released wiretaps from the police discussing the department’s arrest and murder of certain political figures.

Q: Has a fear of prosecution for corruption limited the ability of government agencies to do their work?

A: Anti-corruption efforts work when they are embedded in a layer of reform, but Indonesia has yet to develop a comprehensive strategy for reform. For example the Indonesian stimulus package was mostly tax cuts, because if more money was funneled through the bureaucracy, there would be more likelihood of much of it not reaching its intended targets.

Q: How do you measure success in an anti-corruption program?

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