by
Joel Hellman
World Bank Senior Governance Adviser Jakarta, Indinesia, January 20, 2005 The World Bank welcomes the clear commitment of the administration of President Susilo Bambang Yudhoyono on the issues of governance, legal and judicial reform, and anti-corruption. This commitment has been at the very center of the new Government’s platform for the future. We appreciate some of the signs of progress already made, such as the creation and first efforts of the Anti Corruption Commission; and the Anti-Corruption Court; the Presidential Instruction on anti-corruption initiatives and the Attorney General’s efforts to accelerate action on a number of important anti-corruption prosecutions. We also welcome the Government’s strong commitment to improve the investment climate which, as we have often said, is a key step in improving the overall governance environment. The new administration now has several important opportunities to turn these commitments into action, including: The drafting of a National Anti-Corruption Strategy can provide a framework for developing a comprehensive strategic approach to the underlying governance problems that create opportunities for corruption in Indonesia. Such a strategy should build on extensive public consultation with those constituencies most affected by corruption and draw on the considerable work already done by a number of prominent anti-corruption organizations. International experience suggests that the most effective anti-corruption strategies are focused a small number of credible, concrete and achievable actions that can show quick results and build further momentum for reform. The government has created a National Committee for Governance Reform with representation from the private sector and civil society. We would encourage this forum to put forward an action-oriented plan to address governance problems, especially as they impact on the daily life of the common man and the private sector. The opportunity to put in place a transparent and accountable process for governing the global outpouring of financial assistance for the people of Aceh and North Sumatra could shape Indonesia’s reputation for governance for years to come. The President and the Cabinet have already laid out in this CGI meeting an impressive independent governance and fiduciary framework for ensuring accountability and transparency in the use and management of the reconstruction funds. If effectively implemented, such a framework would put in place strong safeguards to ensure that the reconstruction funds go to the benefit of the people in the affected communities. At the CGI session, the Government outlined some key areas of governance reform which still require serious attention: Comprehensive administrative and civil service reform are required to prevent corruption in the public sector. The Government has several initiatives to develop blueprints, and the Medium Term Development Plan also refers to the necessity of administrative and civil service reform. However, this complex and politically difficult agenda requires strong, sustained and visible support from the highest levels of Government. The first step, already envisaged in the Civil Service Law could be to appoint a Civil Service Reform Commission. Such a body should be independent, adequately resourced, composed of credible public figures, and report directly to the President. Its first task would be to draw up a strategy and implementation plan for these reforms through a consultative process covering key issues such as pay, performance, management, integrity and accountability. While the strategy is being formulated, the Government could seek to achieve some quick wins by setting up a cadre of accountable financial officers and tax administration staff that could be put in place immediately. Judicial and legal reform have long been recognized as critical for governance, the investment climate and improving service delivery and were frequently mentioned during the CGI sessions. We welcome the representation and clear commitments to reform of the Supreme Court and Attorney General’s Office delivered at the CGI. Blueprints for the reform of the Supreme Court were issued in 2003, but it is time now for credible implementation actions that signal decisive and demonstrable steps forward in this area. And it was recognized that this process will involve not only the judiciary but also the Bar Association and civil society. The World Bank looks forward to the full establishment and functioning of the Judicial Commission, Prosecutorial Commission and the Commission on the National Police which should become important oversight bodies for legal and judicial institutions. We stand ready to offer full support to the authorities in implementing this challenging agenda. |
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