Strategic Plan 2012 – 2016
Some areas of the archipelago are vulnerable to conflict, particularly sensitive border areas. Kemitraan continued the successful CEWERS project in post conflict areas including Kupang, Poso, Ambon, and Belu as part of the Aid to Uprooted People program supported by the EU. The program was completed in January 2013 leaving a multi stakeholder networks that allow local peace activists a greater capacity to influence policy in these sensitive areas.
Reducing corruption in Indonesia means focusing on procurement where, according to data from corruption eradication institutions, around 20 – 30 percent of the national budget is unaccounted for. With e-procurement we hope this money can be allocated to building much needed infrastructure and for social services that will help alleviate poverty. Kemitraan has been promoting e-procurement for several years now, and worked closely in 2012 with administrations in Papua and West Papua, where adoption has lagged behind other provinces. Human resources are always a challenge in these remote provinces, so a center for learning has been established, along with a model e-procurement agency within the local governments of Keerom and Kaimana.
But there are two parties in procurement: the buyer (government) and the vendor (business). Kemitraan has also been working with the business community to improve the procurement process and has continued working with SIEMENS in their anti-graft activities focused on advocacy for more transparent procurement. Several seminars were organized to familiarize vendors with e-procurement systems and a broad private sector coalition is emerging to drive anti-corruption action and good corporate governance.
Business Supports Bureaucracy Reform in Indonesia
Inefficiency and corruption remain serious obstacles to doing business in Indonesia according to Sofyan Wanandi of the Indonesian Employers Association (Apindo). He was speaking speaking at the Kemitraan Lecture, Efforts and Challenges in Bureaucracy Reform. “Inefficiency has meant Indonesia is placed at the bottom level in the World Bank’s ease of doing business rankings. In 2012 we ranked 129 and for 2013 we rank 128”.
Regarding corruption, he considers Indonesia at a critical level where extraordinary measures need to be taken. Corruption is rampant in the regions, especially in the development and allocation of local budgets issuing business permits, procurement of goods and services, and the formulation of bylaws.
“Bureaucracy reform is as important as economic and political reform, because it is the first step in improving lots of things in this country, one of which is to create a healthy and conducive business climate,” he said. “If the bureaucracy is transparent, fair, clean, and professional, then businesspeople won’t be able to bribe.” He said that the business community was ready to cooperate and to be involved in the reform process.
By the end of December 2012, TIRI (our partner in integrity programs) had already expanded the network of university partners in the Indonesia IEN network to 109 member institutions. I-IEN has completed six integrity teaching modules to complement the anti-corruption curriculum initiated by the Ministry of Education’s Council for Higher Education.
Together with several government institutions, academics and other CSOs, TIRI developed a basic training module for integrity officers which has been adopted and implemented by the Ministry of State Apparatus and Bureaucracy Reform to improve the capacity of internal oversight staff – there are over 4000 of these officers throughout the Ministries.
The pilot of this integrity training was held in early 2013 with the first batch of 24 internal oversight officers from the Ministry of Commerce.
Another sector where corruption flourishes is the timber trade, where, according to Interpol, illegal logging in timber could be worth up to 8 billion dollars a year. To meet growing international demands for legally sourced timber, the government issued a Minister of Forestry Regulation for a Timber Legality Verification System, or SVLK. This regulation was designed to make it easier for major timber importers like Japan, United States and European Union meet their own requirements regarding the legality of the timber they purchase.
Kemitraan, with our partners, have researched the various government agencies outside the Forestry Ministry, who are involved in processing timber verification, including the Ministry of Industry, Ministry of Trade, Directorate General of Customs & Excise, Indonesian National Police, and local governments. We will continue to monitor the impacts of the SVLK, as much depends on implementation and enforcement.