Corruption and Poverty Both Side of Single Coin, Indonesia Case

At least 32 years Indonesia led by fascist regime, Soeharto, until he fell down in 1998. And the sun rise in south East Asia, but the dark cloud still hanging in the sky. Regime has change along with hundreds people dead, the price must be paid in turbulence of ‘reformation’ after ruining new order with Golkar party as politics vehicle. But, the system and method still running on.  Till the latest general election in 2004 and  2009 Golkar the ruling party in the past, come to set up the ruins with single mission: to protect and serve the crony and the loyal followers. As result, corruption and poverty still the biggest problem. 


And now, Democratic party arise lead by President Susilo Bambang Yudhoyono become the ruling party. But, nothing significance has changed to combat corruption. So, what people could do in the era of information society? it's the time to rise pressure that corruption and poverty is not belong of  Indonesian habit and culture. Let star with small thing you could do through writing and or blogging.

 The survey conducted by Political & Economic Risk Consultancy Ltd (PERC) on 2004, said, Indonesia as the most corrupt country in Asia, worst than India, Vietnam, Philippine and Thailand. PERC also said, the person well known of corruptor are those who have political power. These conditions combine perfectly with the lack of justice system, power abuse and money, finally determining the winner in court. We called it ‘mafia peradilan’  (judicial corruption).

Soeharto with
Ronald Reagan (kaskus.us)

 PERC summarized that corruption in Indonesia was endemic. Consistent to PERC, more globally, Transparency International (TI) in 2004 placed Indonesia in rank 35 of 145 countries or at 10 from the bottom with CPI (Corruption Perception Index) value 2.0. Mean while, rank of cleanest country is Finland with CPI value 9, 7 and most corrupt country is Haiti placed at 145 (bottom) with CPI value 1, 45. 

Although reformation agenda touching bureaucracy since Soeharto fell own, whom replaced by Habibie, then Abdurahman Wahid (Gus Dur) and replaced by Megawati, until Susilo Bambang Yudhoyono took place, the struggling to combat corruption was slow down and still facing some classic obstacle and difficulties. There is a commitment without support, unclear agenda, lack in implementation and action,  are weaknesses to combat, precisely to minimize or eradicate level of corruption that could make the actors of corruption become worry or fear to prevent of doing that. That’s why, although the regime has change but combating corruption in Indonesia like foreigners said sinically as the old wine in new bottles.

International Finance Corporation (IFC) in late 2004 said  Indonesia along with Vietnam, Laos and Cambodia, to be placed in a group of most difficult countries to run business. These conditions opposite compare to other three countries of ASEAN such as Thailand, Malaysia and Singapore. Those countries along with New Zealand, Australia and Hongkong, are seventh magnificent countries in Asia Pacific region that favorable and suitable to run businesses.  IFC proved to run business in Indonesia needed 151 days average to take permission. Compare to seventh countries in Pacific Asia is only 27 work days.

Response from Indonesia government to the such facts is beyond accommodative. The bureau of financial surveillance well known BPK (Badan Pengawas Keuangan) has conducted  investigation in 5 years and found sum of Rp 166,53 trillion ( US D 16.653 billion if 1 $ = Rp. 10,000) being corrupted. It’s accumulated from 22 corruption cases. Included the case of Bank Bali in line with scheme of Bantuan Likuiditas Bank Indonesia / BLBI  (Liquidity Aid from Bank of Indonesia) predicted sum of Rp 144,5 Trillions (USED 14,45 billion).   The fantastic case has been delivering to attorney and police to follow up. Unfortunately, till these reports have been made the result still unclear, the big question arise, where was the money going? The lack in state accounting system suspected causes the high risk of acting corruption happen and become out of control then widely spread.

Faisal Basri, an economist from University of Indonesia, looks from different angle. His study in 2004, said that in front of receivable income, almost Rp 40 Trillion (USD 4 billion) potential money collected from tax payment was lost because of corruption by officials. It is twice bigger than the budget of Consultative Group on Indonesia (CGI) lend to Indonesia’s government in the same period.

Rizal Malik and Todung Mulya Lubis from Transparency International Indonesia on 09 December 2006, pointed out: the government did not take seriously into action to combat corruption. They identify such institutions as legislative member (politicians) and judicative official were the most corrupt, followed by businessmen, permission, taxes, education and National Arm Forces (TNI), especially national police, still at top rank of the most corrupt.

Millions people suffer as an impact of corruption, poverty widespread, highly number of productive age were jobless, farmers being haunted by imbalance between high cost of production  and  defining of profit (less). Meanwhile corruptors easily met everywhere around them and the acts of bribery was endemic in bureaucratic.

A survey conducting by Transparency International and Gallup International to 1000 Indonesians respondent in the middle of 2006, highlight that Indonesia’s government not taking significant steps to combat corruption yet.

Some politicians, executive or legislative always become lobbyist and/or squeezer in the projects of supplying stuffs to local or central government offices, then corruption area become widen not only in general election arena, but also in the race to gain voters by money politics to win election, then spreading out to the territorial of public services.

Public service sector is dirty place and wet field for illegal payment, from end to end.  Such as permits, ID card, licenses, route permit, driving license, customs, taxes, power, clean water, gasoline, and last but not least is education sector still haunted by under table money. Another issue is the high cost of money impose  immigration officers to get permanent resident or citizenship for Indonesian-Chinnese..

Corruption also has becoming such obstacle for investor to run business in Indonesia because of local regulations and permits. One who try to avoid and being clean straight to  formal procedure, certainly  frustrated. You will meet the long and winding road with unpredictable time. But who will be taken for granted? Finally, people always become the victim. They must be pay more and more for any cost of living. Corruption hurting people, millions of children  growing in pain, women and old men in villages live with poor, suffer, painful, they lack of education, lack in health care. Sadly, they have no access just for basic need alike clean water and sanitation. Kofi Annan, late UN Secretary General, on his speech in world forum for health clearly said: ‘’We shall not finally defeat AIDS, tuberculosis, malaria, or any other infections disease that plague the developing world until we have also won the battle for safe drinking-water, sanitation and basic health care’’.    

According to previous corruption issue, what’s wrong with the government? Transparency International Indonesia pointed out: First, President Susilo Bambang Yudhoyono must be recommitted to combat corruption directly, truly to the best of him and followed by public official and involving public campaign. Second, the politicians and political parties should be push to seeing Indonesia up next facing global competition in the region. Third, President SBY should have clear agenda on bureaucratic reformation, creating support machine become more effective, efficient and professional. Totally comprehensive reform to security apparatus included policemen, until they capable enough to combat corruption and not involving himself in illegal bad practices and being a burden because of its huge corruption circle. Fourth, taking top priority on good public service as basic people rights and soon to declare the freedom of information, regulations on public service and regulations in bureaucracy reformation.

Are those parameters enough to minimized level of corruption and eradicate poverty? We have examined and learn from history, how people waking up his pride and dignity, building mental and character? We have a legacy from the past, the most important thing is how to dealing with our own culture that everybody should not to protect, being an actor, even being the actor it’s self who done alike behavior of corrupt. Corruption only making our nation falling down into the deep valley of poverty. Corruption is only born poverty, illness of society, making retarded, dull, and powerless to the people. We believe corruption will be effectively eradicated if there is a wide involvement from the people as the victim. Corruption definitely causes poverty and poverty is straight path to corrupt, as both side in single coin!

To Dun President Promises

In first year President SBY took the power, a few institution concerning to corruption being erected. For example, based on national regulation number 30 / 2002, Indonesia Government launches the commission against corruption named Komisi Pemberantasan Korupsi (KPK). This super body has 5 duties and 29 unordinary authorities lead by Taufiqurahman Ruki. At first, people believe to KPK, indicated by a huge people paying attention to. At least 8100 report coming from the public concerning to the acting of corruption they found. Unfortunately, this super body was not supported enough yet from the parliamentary nor executives.  Similar institution that raising another hope to the people on eradicates level of corruption is Ombudsman Commission, PPATK, Judicial Commission, and Attorney Commission.

Reports intensities deliver to the institution indicate that people giving their trust to eradicate corruption, unfortunately again, the lack of support from apparatus into action become an obstacle. The reasons are limited of money, limited capable of human resources, and lack in politics support. 

People of Indonesia still remember, when Mr. Susilo Bambang Yudhoyono (SBY) and Mr. Jusuf Kalla (JK), finally elected in general election 2004, they came up as rising star to the top executive leader as President and Vice President. They have taken six promises to fulfill people’s aspiration. First, they promise to attempt hardly creating of clean and good governance, and responsive to the needy of people aspirations. Second, government will set up domestic affairs. Third, the president wills directly taking as leader in program of combat corruption. Fourth, government will take a prior to set up policy in education and healthcare. Fifth, government will take intensive dialogue with the economic actors, businessmen, included investor that should be accelerates economic growth. Sixth, government will pay attention to decentralizations and local autonomy to ensure better public service.

Susilo Bambang Yudhoyono
(therichest.org)

The promises then implement in many policies.  Such as appointed Abdul Rachman Saleh as the man in charge to prosecute corruptor to the court as chief attorney institution; Publishing President Instruction (Number 5/2004) about the acceleration to combat corruption; some corruptor prisoner moving to Nusakambangan prison, most popular isolated jail In java island as hell for prisoners; setting up National Action Plan in Combating Corruption (2004-2009); established Corruptor Hunter Team; etcetera.

In the first year, at least 36 statement declared by Mr. President according to combat corruption in his speech, average 3 times per month, confirming to his commitment. But, then disappear blowing in the wind.  Let see what next? How far implementation of action plans into reality? People could see, there is no clearly target, Till the end of 2005, we could see that: The President agenda’s to combat corruption not supported enough yet, even from his cabinet member. And worst, no paying attention to the man behind the gun, who will be determine these programmed will succeed or fail. In tackling every corruption case, the apparatus looking not responsive enough to fulfill Mr. President will. And the most important thing is: an opportunities of doing corruption still huge, being captured is thin and probability to release is high and of course, the result from corruption is bigger compare to risks should be impose to corruptor.

According the issue, we could review: First, the government need to reevaluate its policy in fighting corruption. The policies should be comprehensive, concrete, and supported by control system to ensure those policies will be done by the minister and all of government employees. Second, combating corruption orientation must be in line with the bureaucratic reformation and in every step required to all sector. 

The priority should be focus on the resources of state receivable and payable account, in which deeply influence to the projects concerning public service such as education and health care sector.

We could see, fighting corruption impossible to eradicate without support enough from collective cabinet members to running the program. In doing so, the government along with parliament members/people representative should be responsive to accelerate some regulations to support. An important one is regulation on witness protection and the people right to be informed and get information from any government institutions.

Poverty is Another Side

Corruption is indeed one of the most formidable challenges to good governance, development and poverty reduction in Indonesia. The vast majority of the people are only victims of corruption. ‘’Corruption is limited number of powerful individuals, and failure of leaders and institutions to control or prevent corruption, does not imply that Indonesia or its people are most corrupt’’ Transparency International define.

According to the victim of corruption, I’d like making relevant correlation to poverty. Data below describing how corruption affecting  a huge number  of Indonesian. Official news of Statistic N0. 47/IX/1 in September 2006, published by government said:

·        Number of poor people (citizens who life under poverty line) in Indonesia on March 2006 is 39, 05 million (17.75 percent). Compare to Feb. 2005, 35, 10 million (15.97%), means number of poor people was increase 3, 95 million.

·        Percentage poor people who live in urban and sub urban is not much more change.

·        Food commodity role to poverty line is greater compare to commodity of non food (housing, cloth, education and health). On March 2006, contribution of food to poverty line is 74.99%.

·        Food commodities that highly influence to the poverty line are: rice, sugar, oil food, eggs, and instant noodle. In non food commodities sector, most costly is housing. Especially in urban area, the cost for power/electrician, transportation and energy significantly are most effected, compare to sub urban relatively unaffected, only 2 percent.

Indonesia today was in turbulence climate to establishing clean and good governance. At the same time, we were facing globalization. Its mean information revolution. Who will be taking advantegeous in globalization era? Free Press. The time is on its side when globalization mean everybody have the right to be well-informed, without fear, uncensored, easy access, so they could speak out and share ideas to learn each other for a better life now and in next future.

Let see why the free press is important. Until now, people have no guarantee to get free information from the government. One who report of corruption issues being treatment, physically and/or mentally, he infant from being jailed because of no available witness protection mechanism. The people should be given adequate room to take in charge of corruptor by class action, legal standing or another law alternative mechanism. And what we get? We have seen, there is not enough and seriously support from government to those institution in line to combat corruption. It is reflecting a lack and low in political will to response people aspirations on combat corruption agenda.

Julian Schweitzer, Deputy Vice President, East Asia and Pacific region of World Bank, in his paper “Using the power of Information to combat poverty” said, globalization is teaching us a lot about the power of information, and how it can be harnessed for the betterment of humanity. It is encouraging us to believe that information is an essential weapon against poverty.

Australian-born President of the Bank, Jim Wolfensohn, tirelessly points out, today six billion people will become eight billion people in just 25 years. In the past half-century we can see that some of the objectives we in the multilateral institutions set out to achieve in the developing world have been met. Many millions of poor people have been helped to healthier, better educated, safer, more productive and more fulfilling lives as a result of the aid, advice and altruism provided by numerous institutions, organizations and governments. In a generation, life expectancy has increased from 55 years to 64, incomes per person have double, infant mortality has been halved, and children in school have increased from two in four to three in four.

At other part of his paper, he said that we are in danger of losing the fight against poverty. About 1.2 billion people in the world survive on less than $ 1 per day; another 2 billion have less than $ 2 per day. Over 800 million people cannot read or write. Food production will need to double over the next 30 years to feed the addition population. And in Africa and parts of Asia, AIDS is taking a terrible toll.

Revolution of Information

We see no alternative to the use of information revolution, in every sense, to help developing countries, to help us and to help our partners to succeed in the crucial decades ahead.

The information revolution means a number of things first, it means the need to make full use of our huge store of global knowledge about development so that every one, world-wide, has access to the experiences, the lessons, the successes, the failures, the best practice,  of others. This applies to every field of endeavor from growing food and protecting the health of infants to reducing pollution, saving the environment, securing sound corporate governance and building strong legal frameworks. We see this not as intra-agency knowledge or inter-agency knowledge. It is development knowledge that should be accessible to all.

Information revolution means that there is no excuse to avoid alliances and partnership that can get the job done quicker, more effective and much more efficiently.

We need to working closely with other development institutions, with NGOs, with civil society, media, academia, the private sector and other to find way of sharing knowledge and information, to determine who is best placed to take on certain task, and to avoid duplication, contradiction and waste.

In this context we are aware that more and more of the challenges faced by governments in the coming years will arise from global economic forces, and will reflect global economic needs that cannot always be met by governments alone.

The information revolution means that we can longer afford to see the work we do in the multilateral institutions as purely economic, or purely financial, or purely cultural, according to the roles defined in our original constitutions. To do so would be to ignore what in an era of globalization is obvious, which is that everything interrelated? You cannot solve a complex problem by dealing in isolation with just a few of its many elements.

Education and healthcare, are essential ingredients of economic growth and development, and are therefore part of the holistic vision. Julian Schweitzer said:

‘’We cannot look at social and financial issues effectively without taking into account the underlying structure of the economy. And for this you need solid provision for good governance, for intolerance of corruption, for a free press, and for an honest legal and judicial system embracing respect for everything from the law of contract to individual human rights. And in fact, we now have empirical evidence which begins to back this up. Recent work by the World Bank using rule of law indicators suggests a positive correlation between the rule of law and poverty reduction, it is a question of achieving a responsible and accountable government and society’’.

None of the issues that are so crucial to the strength of the underlying economic structure has proved more difficult to tackle than corruption. It is a major inhibitor of equitable economic development. ‘’This is why we have redefine corruption, not as a political issue (for that would conflict with the Bank Articles Agreement), but as an economic and social one’’.

Of course, corruption is not an issue in developing countries alone. It is a universal problem. It is even possible for people in a number of countries to claim bribes as tax deductions. So while there is work to be done on this issue globally, the only truly effective way of combating corruption is to deal with it locally. It is tremendously difficult to impose changes from outside a society. But what you can do, said Julian, is to create a climate for change by encouraging a flow of ideas.

Information has gone global it is immediate and virtually uncensorable. But think what this revolution is doing for developing world. Think of countries where in the past the ability to control information has allowed governments to determine what their people know, and when they know it.

The Role of Free Press

Information is power. Knowledge is power.  A transparent society is what happens, where people know what is going on and can express opinions, share ideas, enter into debate and question what is being done in their name. An open flow of information encourages honestly, responsibility. It evokes understanding. It builds investor confidence and support the economic growth that pulls people out of poverty and gives them a chance in life.  .

Jim Wolfensohn likes to tell the story of the time he visited Georgia and saw how President Shevardnadze was dealing with mass corruption incompetence in the judicial system by obliging all 200 judges to take an exam on national television. Most failed, and were replaced.

In Uganda World Bank were worrying about the issue of payments to teachers who were not turning up for work. So they took the opportunity of publishing in the newspapers the money that they were providing to various districts for education.  When it was determined by the people that the teachers were not showing up, public pressure ensured that their attitude changed quickly and dramatically. In Argentina, needy children in Buenos Aires were being charged more than twice as much for their lunches as those in putting areas in a social program World Bank funding until using the media to highlight the issue. Within two weeks the disparity was remedied. Such stories about the power of information are legion.

But nowhere have we seen information used to better effect than Indonesia. The country that has achieved the triumph of securing a democratically-elected President, of empowering a free press, and of beginning a campaign against a system of corruption that as bad as any in the world today. You have to ask, what could have been achieved in this new environment had the media not been free to report in the government, on politics, on corruption, collusion and nepotism? Would, for example, the Bank Bali scandal with the diversion of huge amounts of money for political purpose? Have been come to light without a free press? We must doubt it.

Indonesia is a country that was coming to grips with the benefits of openness, of the need for serious legal reform, of trying to ensure respect for human rights, of instilling sound corporate governance and the other ingredients that in the past Indonesia lacked and has suffered painfully as result.

Julian Schweitzer want to share with us the finding of another of his recent reports, which gives us a graphic and poignant portrait of what poor and disadvantaged individuals across the developing world really think about their plight. He said, we have done a study of no fewer than 60,000 such people in some 60 countries. We also interviewed 20,000 people in 23 countries. What emerges from this ambitious exercise is that poor people are upset most of all not by lack of education, say, or opportunity, or wealth, but lack of voice?

The inability to express them selves; the inability to be represented; the inability to convey to those in authority what is they think; inability to shine a light on conditions of inequity. An associated priority for poor people is their lack of trust in governments. They want to be able to elect their own representatives. They want to posses their own voice. As Amartya Sen, the Master of Trinity College, Cambridge, argues in his new book “Development as Freedom”, development can be seen as a process of expanding the real freedoms that people enjoy.    

As a recent report by Freedom House put it after a survey of progress (and Julian also quote) ‘’Human kind, in fits and starts, is rejecting oppression and opting for greater openness and freedom’’. So here, among other freedoms, is further persuasive evidence of the need for a free press in developing world. It is an empowering act for the dispossessed? A free press, as Jim Wolfensohn puts it, is absolutely vital for the poor. If you deny the right to that voice and to exposure of corruption and other anti-social practices in society, you deny the right to equitable development. Freedom of the press, therefore, is not luxury. It is absolutely at the core of equitable progress.

We have seen the need for clean, open and effective institutions, and we recognize the corrosive effects of corruption. A free press, informed, and well trained in the skill of analysis and investigation, and, we hope, increasingly aware of its responsibility to prize accuracy and fairness, may be one of the best investments in the future a developing country can make in seizing the opportunities offered by globalization. The East Asian crisis has legitimized freedom of the press as an integral part of the development agenda, not just for this region, but for the developing world as a whole. ‘’We are starting to witness the power of information in the fight against global poverty.’’ Schweitzer added.


Catatan: artikel ini ditulis pada Desember 21 th, 2006 atas permintaan seorang teman di luar negeri yang ingin mengetahui pendapat saya mengenai Korupsi dan Kemiskinan di Indonesia.