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I. PROBLEM FORMULATIONa. Summary of Indonesian Efforts Against Corruption

Incumbent President Susilo Bambang Yudhoyonos re-election offered considerable scope

for further political and economic reforms over his second term.Indeed, with his choice of

former central bank governor Boediono as vice president and the renomination of respected

Finance Minister Sri Mulyani Indrawati, it is expected that Yudhoyono names a technocratic

new cabinet. This is well promising for policy continuation and more efforts are foreseento

clamp down oncorruption and enactmore pro-business reforms.

In efforts of fighting corruption, Indonesia is stopped by the two officials from Corruption

Eradication Commission (KPK) being placed as suspects in a corruption investigation.

Chandra Hamzah and Bibit Samad Rianto, deputy chairmen ofthe KPK, were named suspects

after lengthy questioning. The two suspected officials are accused of misusing authority.

Despite an ongoing anti-corruption drive, Indonesia is still ranked only 126th out of 180 in

Transparency Internationals 2008 corruption perception index (Asia Monitor). The World

Bank estimates thatcorruptioncan add up to 20% to the cost of doing business inIndonesia.

As this process go by, many doubts rise as eventhe party standing onthe side of fighting

corruptioncannot also avoid the risk of doing corruption itself.

b. QuestionsContinuous curiosity rises as there come asking questions toward these problems.

An important question is:

How should corruption practice in Indonesia be handled to endeavor good atmosphere of

business, if eventhe eradicationcommission also is corrupt or make mistakes?


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II. ANALYSISa. Fighting on Corruption

It is knownthatcorruption is more common in places without democratic spirits and do not

conduct governance good.In addition, corruption is usually rampant incountries which pose

no freedom of press; role of government in the economy so large; in place of war and

emergency conditions in which civil servants are paid low quality; lack of private sector roles

and place ofmonopoly; and ifthe rules the economy Ares notclear. According to Klitgaard,

systemic corruption has a correlation with the concentration and monopoly power.

Truthfully speaking, Indonesia is a way out ofthese conditions. But still, its fighting hard on

its bloody journey to establish good, corruption-free governance. Although efforts have

been stepped up to combat graft in recent years, it was revealed that the Corruption

Eradication Commission (KPK) has only looked into 143 out of the 30,000 complaints

received since 2003, raising questions aboutthe agencys effectiveness.

Nonetheless, KPK has beencredited with the arrests of several high profile figures. This is

found out to be general in world practice, since in many countries, anti-corruption

commission could be weakened as police and prosecutors can be weakened. This was

revealed during the two-day conference UNCAC (United Nation Conference on Anti

Corruption) in November 2009 in Qatar, thatthe weakening and the criminalization ofthe

members of the Independent Anti-Corruption Commission is not only happening in

Indonesia. For example in Afghanistan, is an event where anti-corruptionchief was arrested

on drug-related cases. Then the corruption commission of South Korea, KICAC (Korean

Independent Commission Against Corruption) which was formally disbanded and merged

with other state commissions by Lee Myung Bak, President-electknownto be pro-business

sided. And it was the same situation in Nigeria, where Nuhu Ribadu, Chairman of the

Economic and Financial Crime Commission of Nigeria was forced to resign from office by the

Government of Nigeria for his brave paces inuncovering a major corruptioncase. One ofthe

causes of Nuhu Ribadu was forced to resign because of his actions in the fight against

corruption among the famous Nigerian politicians corrupt. One who had been thrownby

Nuhu Ribadu is the former governor of Delta State is knownto havebusiness affair with the

President of Nigeria, Umaru Yar'Adua. So after all, law enforcement agencies and corruption

eradication institutions can also be corrupt or make mistakes, either by person or by force.


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Commission.It should be remembered that in accordance with the mandate of UNCAC, each

participating country mustmaintain and retain an independent anticorruptioncommission.

III. RECOMMENDATION FORTHEBUSINESSSince KPK will continue to play a pivotal role in curbing corruption in the coming years, then

business worlds mustbenefit fromthe merriness of increasing law enforcement efforts. Business

will run smooth, without illegal retribution paid to irresponsible bureaucrative officers. And

government itself will self-free themselves from any badly behaved businessmen who do

businesses dirty-handed. All that is necessary to do, is by letting corruption eradication institution

operate credibly independent, and changing the point of view into becoming more transparent

and opento any kinds of input or constructive criticism.

Generally speaking, Indonesia is politically effective and therefore able to gain the support

necessary to handle domestic problems. Many evidences have proven that Indonesia is an

example of how the governmentcommunicated broadly across the world to gain various types of

supportthat was badly needed.


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BIBLIOGRAPHY

South East Asia Monitor. (2009). Indonesia Risk Summary. South East Asia Monitor Volume 2, Nov

2009

Indonesia Business Forecast Report. (2009) Indonesia Executive Summary. Business Monitor

International

Indonesia Corruption Watch. (2009). Kesadaran Lawan Korupsi.

http://antikorupsi.org/indo/content/view/15905/1/(accessed December 12, 2009)

Indonesia Corruption Watch. (2009). Tren Global Pelemahan Komisi Antikorupsi Independen.

http://antikorupsi.org/indo/content/view/15799/1/(accessed December 12, 2009)

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