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Hills Governance Update Summary

Core Content

This document is a governance update from the Hills Program on Governance, published by the Center for Strategic and International Studies (CSIS) in February 2013. It outlines the challenges Indonesia faces in its anti-corruption efforts and the need for sustained momentum, public engagement, and institutional reform.

Main Points

1. Anti-Corruption Momentum and Challenges

• Retaining Momentum: Anti-corruption efforts in Indonesia, particularly under President SBY, have faced significant obstacles due to entrenched and powerful interests that resist reform.
• KPK's Role and Limitations: The Corruption Eradication Commission (KPK) is a key institution in the fight against corruption, but it is severely under-resourced. With only 700 staff and a budget of $746 million, it is difficult to combat widespread corruption in a country of 245 million people.
• Comparison with Other Regions: The KPK's resources are far less than those of similar institutions in Hong Kong (ICAC) and Malaysia (MACC/SPRM), which have smaller populations and more robust support.
• Regional Autonomy and Decentralization: The KPK should have regional offices in all 33 provinces to better address localized corruption, but this has not been implemented.

2. Political and Institutional Resistance

• KPK Under Attack: The KPK has faced constant political interference and resistance, including a conflict with the national police over a corruption case involving Inspector General Djoko Susilo.
• Impact of Political Interference: The police force's attempt to withdraw investigators from the KPK has significantly weakened its capacity, leaving only 52 trained investigators to handle 68 cases.
• Need for Political Will: Political will is crucial for anti-corruption progress, but it has been lacking. This is reflected in limited resources, interference, and weak legal frameworks.

3. Strategies for Anti-Corruption Reform

• Presidential Regulation: In May 2012, the government announced a Presidential Regulation for Corruption Prevention and Eradication, outlining a medium-term (2012–2014) and long-term (2012–2025) strategy.
• Four Pillars of Strategy:
  • Maximizing transparency
  • Minimizing physical interaction in areas prone to corruption
  • Appointing competent and honest bureaucrats
  • Building a supportive regulatory environment and mechanisms
• Need for Monitoring: The strategy must be continuously monitored to ensure implementation and avoid becoming an empty ideal.

4. Public Sentiment and Participation

• Public Intolerance Index: A survey by the National Statistical Board shows that Indonesians score 3.55 on a 1–5 scale for intolerance towards corruption, indicating a relatively strong public stance against it.
• Role of Civil Society: Civil society organizations, media, and academia play a critical role in maintaining pressure on the government and promoting transparency and accountability.

5. Political Corruption and Systemic Issues

• Political Corruption Cases: Political corruption, including collusion between politicians, businesses, and government officials in awarding contracts, is a growing concern.
• Ministerial Resignations: A serving minister resigned due to involvement in a major corruption case related to sports facility construction.
• Political Party Financing: Over 52 political parties had members implicated in graft cases, highlighting the need for reform in political financing and campaign laws.
• State Budget Scrutiny: Closer monitoring of state budget management is essential to prevent misuse and ensure accountability.

6. Conclusion and Call to Action

• Sustained Efforts Required: Combating systemic corruption requires long-term commitment, perseverance, and a holistic approach.
• Citizen Engagement: Institutional reforms alone are not sufficient; greater citizen participation and engagement are necessary to ensure that reforms benefit the public.

Key Information

• Indonesia's Corruption Perception Index (CPI): Fell to 118th out of 178 countries in 2012, down from 100th in 2011.
• KPK's Capacity: Only 52 investigators are currently active, handling 68 cases.
• Public Sentiment: Indonesians are fairly intolerant of corruption (score of 3.55), which is a positive sign for reform efforts.
• Need for Institutional and Civic Reform: Both institutional improvements and greater civic participation are required for effective anti-corruption governance.

Governance Centers Worldwide

• Asian Institute of Management, Philippines
• Center for Strategic and International Studies, United States
• IPADE Business School, Mexico
• Strathmore University, Kenya
• Tsinghua University, China
• University of Indonesia
• Yonsei University, South Korea

Authors and Contributors

• Jerry Hyman: President of the Hills Program on Governance at CSIS
• Natalia Soebagjo: Executive Director of the Center for the Study of Governance, University of Indonesia
• Nathaniel Ahrens: Deputy Director and Fellow, CSIS Hills Program on Governance

Final Note

CSIS emphasizes the importance of maintaining anti-corruption momentum, supporting the KPK, and fostering public and civil society engagement in governance reform. The document serves as a call to action for continued vigilance and pressure on the government to deliver meaningful change.