Public Participation Is Key In Combating Corruption In Decentralized Indonesia, Says Report

World Bank Office Jakarta
Jakarta Stock Exchange Building
Tower 2, 12th Floor (62-21-5299-3000)

Contact:
Achmad Sukarsono & Taufik Rinaldi
Tel :(62 21) 5299-32509, 310-7158
asukarsono@worldbank.org
trinaldi@worldbank.org

Jakarta, June 19, 2007 – Civil society groups and the public in general are key players in exposing and resolving corruption practices that are on the rise in local government bodies in Indonesia, a study by the World Bank’s Justice for the Poor Program revealed at a launch in Jakarta on 19 June.

The Local Governance Corruption Study was conducted in five provinces (West Sumatra, West Kalimantan, Central Sulawesi, East Java and West Nusa Tenggara) and covered ten major cases of corruption by local parliamentary representatives and government officuals.

Speaking at a seminar to launch the study at the Nikko Hotel in Jakarta, the World Bank Office Jakarta’s Lead Economist, William Wallace, noted that, “While Indonesia’s decentralization has spawned more complex corruption practices at the local level, it has also opened up new opportunities to combat graft.  The Government has triggered genuine momentum in the fight against corruption.  Civil society groups at the local level are playing an important role in supporting this momentum.”

Taufik Rinaldi, tbe lead author of the report, observed that, “Civil society groups have stepped up and are putting the brakes on corruption. New non-governmental groups have mushroomed and the media have grown in stature.  When they work together they can reveal corruption and push cases through the legal system.”

In 2006, there were 265 corruption cases involving local legislative bodies with almost 1,000 suspects handled by prosecutorial offices across Indonesia. In the same year, the same offices had 46 corruption cases implicating 61 regional executive leaders.

Corruption in the local legislatures includes funneling the regional budget to fictitious bodies or charities, inflating travel expenses and increasing the number of items in the budget. In the local executive offices, common practices include using surplus funds without clear procedure, abusing disbursement of the local budget and mishandling the procurement process.

The study documented how actors involved in the resolution of corruption cases at the local level --non-governmental organizations, anti-corruption networks, academics and other civil society components—addressed these cases.

While many successes were identified, these organizations lack staying power. Many of them emerged in response to a high-profile case, but then dissolve once the case disappears from the public sphere.

Based on this study, the World Bank’s Justice for Poor Program recommends that legal guarantees be passed and enforced to ensure public participation in the handling of corruption cases.  The research showed success depends on the level of cooperation between public actors and local government, as well as the local law enforcement agencies. Moreover, legal reforms at the local level are imperative to support the war on corruption.

Wallace emphasized that, “The World Bank has established a ‘Justice for the Poor’ program since 2002 to improve access to justice for poor and marginal groups.  This program will help to follow up on the findings and recommendations of the Local Governance Corruption Study.”