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Indonesia - Corruption

Corruption in the Indonesian military points toward a larger national problem. Transparency International in its Corruption Perception Index listed Indonesia as one of the most corrupt countries in the world, indicating a problem deeply rooted in the permissiveness of Indonesian culture. Despite the fact that the Indonesian Armed Forces has one of the lowest budgets in the region both in terms of its total and its percentage of the national budget, it is important to note that there still is plenty of money in military coffers to be misappropriated and stolen. The facts have proven that the theft of public funds is rampant in nearly every sector of government.

On 12 August 2022, General Ferdy Sambo, former head of Internal Affairs in the Indonesian National Police, admitted to authorities that he masterminded a plot to kill his aide, Brigadier Nofriansyah Yosua Hutabara, and disguise the murder as a shootout. Yosua’s autopsy revealed evidence of torture and execution-style gunshot wounds. While a motive for the July 8 murder remained unclear, multiple media outlets reported that Yosua was planning to leak Sambo’s alleged illegal activities, including running gambling rings. The internal police investigation broadened to include nearly three dozen police officers and one- and two-star generals. NGOs and academics expressed doubt, however, that the investigation would include all of Sambo’s illegal activity, which they believed must have been approved at higher levels.

The law provides criminal penalties for official corruption, but government efforts to enforce the law were insufficient. There were numerous reports of government corruption during the year. Despite the arrest and conviction of many high-profile and high-ranking officials, including multiple district heads and heads of state-owned enterprises, there was a widespread perception that corruption remained endemic. NGOs claimed that endemic corruption was one cause of human rights abuses, with economically powerful interests using corrupt government officials to harass and intimidate activists and groups that impeded their businesses.

The Corruption Eradication Commission, national police, the armed forces’ Special Economics Crime Unit, and the Attorney General’s Office may all investigate and prosecute corruption cases. Coordination between these offices, however, was inconsistent and coordination with the armed forces unit was nonexistent. The Corruption Eradication Commission does not have authority to investigate members of the military, nor does it have jurisdiction in cases where state losses are valued at less than one billion rupiah ($65,000).

In April 2022 the NGO Indonesian Corruption Watch reported 2019 revisions to the Corruption Eradication Commission law weakening the body’s independence had resulted in a decline in its pursuit of corruption cases. Many NGOs and activists maintained that the Corruption Eradication Commission’s ability to investigate corruption was limited because its supervisory body was selected and appointed by the president and because the commission was part of the executive branch. Commission investigators were sometimes harassed, intimidated, or attacked because of their work.

In July 2022 Corruption Eradication Commission commissioner Lili Pintauli Siregar resigned amid allegations that she received benefits from the state-owned oil company Pertamina. Her resignation resulted in the cancellation of an ethics probe, and no other investigations were conducted.

The Corruption Eradication Commission investigated and prosecuted officials suspected of corruption at all levels of government. Several high-profile corruption cases involved large-scale government procurement or construction programs and implicated legislators, governors, regents, judges, police, and civil servants. In the year 2022 to September, the commission recovered state assets worth approximately 352 billion rupiah ($22.7 million); it conducted 67 investigations, initiated 22 prosecutions, and completed 29 cases resulting in convictions. The Attorney General Office’s Corruption Taskforce was also active in the investigation and prosecution of high-profile corruption cases. Despite such efforts, most observers believed corruption remained widespread.

On 19 September 2022, the Corruption Eradication Commission reported that by that date 310 members of parliament, 154 mayors and district-level leaders, and 22 governors were implicated in corruption cases. For example, in February 2022 the Jakarta Corruption Court found former Parliament Deputy Speaker Azis Syamusuddin guilty of bribing Corruption Eradication Commission officials Stepanus Robin Pattuju and Maskur Hussain. The court sentenced him to a 3.5-year prison term and barred him from running for office and participating in elections for four years.

In September 2022 the Corruption Eradication Commission announced it was investigating Papua Province Governor Lukas Enembe for corruption related to the construction of a church in the Mimika Regency. A court froze financial assets of the governor worth 71 billion rupiah ($4.62 million). Accusations included channelling large amounts of Special Autonomy funds to the construction of the church in exchange for kickbacks, the transfer of funds totalling tens of millions of dollars to overseas casinos, and other misuses of public funds.

On 28 November 2022, the Corruption Eradication Commission officially named Supreme Court Justice Galzaba Saleh as a suspect. Saleh was the second Supreme Court judge charged with corruption by the commission following the arrest of Chief Justice Sudrajad Dimyati on September 22. Saleh allegedly received bribes worth more than $146,000 to influence a civil case against a company.

According to NGOs and media reports, police commonly demanded bribes ranging from minor payoffs in traffic cases to large amounts in criminal investigations. Corrupt officials sometimes subjected Indonesian migrants returning from abroad, primarily women, to arbitrary strip searches, theft, and extortion. Bribes and extortion influenced prosecution, conviction, and sentencing in civil and criminal cases. Anticorruption NGOs accused key individuals in the justice system of accepting bribes and condoning suspected corruption. Legal aid organizations reported cases often moved very slowly unless a bribe was paid, and in some cases, prosecutors demanded payments from defendants to ensure a less zealous prosecution or to make a case disappear.

In 2013 Indonesia’s ranking in Transparency International’s Corruption Perceptions Index was 114 out of 183 countries. Corruption remains pervasive despite laws to combat corruption and a strong, independent Corruption Eradication Commission (KPK). The KPK’s purview in corruption cases is typically limited to law enforcement and other public officials, cases that exceed $105,000 in value and/or that represent significant loss to the state. Corruption cases are also handled by the Indonesian National Police and Attorney General’s Office, neither of which have the same organizational capacity to investigate or prosecute corruption cases.

Many factors, such as a decentralized decision-making process, legal uncertainty, economic nationalism, and powerful domestic vested interests create a complicated and difficult investment climate. The Indonesian government’s requirements, both formal and informal, to partner with Indonesian companies and purchase goods and services locally, restrictions on some imports and exports, and pressure to make substantial, long-term investment commitments, also factor into foreign investors’ plans. While the Indonesian the Corruption Eradication Commission continues to investigate and prosecute high-profile corruption cases, some investors cite corruption as an obstacle to investment in Indonesia.

The law provides criminal penalties for official corruption, and the government generally implemented these laws effectively. Despite the arrest and conviction of many high-profile and high-powered officials, there was a widespread domestic and international perception that corruption was a part of daily life. Both the KPK and the AGO under the deputy attorney general for special crimes have jurisdiction over investigation and prosecution of corruption cases.

President Yudhoyono campaigned and was re-elected in 2009 on a strong anti-corruption platform. But corruption remains a serious problem, preventing increased foreign investment, according to some US companies. Although the government has issued detailed directions on combating corruption in targeted ministries and agencies, there has not been a concerted government-led effort to encourage or require companies to establish internal codes of conduct, or effective internal controls, ethics, and compliance programs to detect and prevent bribery of public officials.

During 2010 the KPK conducted 62 inquiries, 55 investigations, and 55 prosecutions. As a result of the KPK's prevention and prosecutorial activities, it recovered a total of approximately 170 billion rupiah (approximately $18.8 million) in state assets. In addition, it prevented the loss of more than 500 billion rupiah ($55.5 million) in state assets, according to the KPK's annual report. Between January and November, the AGO reported recovering 354.6 billion rupiah ($34.9 million).

Widespread corruption throughout the legal system continued. Bribes and extortion influenced prosecution, conviction, and sentencing in civil and criminal cases. During the year the National Ombudsman Commission reported receiving 160 complaints of judicial corruption involving judges, clerks, and lawyers. Key individuals in the justice system were accused of accepting bribes and of turning a blind eye to other government offices suspected of corruption. Legal aid organizations reported cases often moved very slowly unless a bribe was paid.

As a result of an independent fact-finding team's investigation, President Yudhoyono formed a Task Force to Eradicate Judicial Mafia to investigate the network of case brokers and influence peddlers who act as intermediaries in judicial cases. As of December 9, the task force had received 3,483 complaints, with 667 cases related to land rights issues; 397 cases related to corruption, collusion, and nepotism; 262 cases of fraud and embezzlement; and 135 cases of extortion, bribery, abuse of authority, and document forgery.

Police commonly extracted bribes ranging from minor payoffs in traffic cases to large bribes in criminal investigations. Corrupt officials sometimes subjected migrants returning from abroad, particularly women, to arbitrary strip searches, theft, and extortion.

On 01 September 2010, the KPK named 25 suspects, primarily former and current members of parliament, as suspects in a bribery case related to vote buying during the 2004 selection of the Bank of Indonesia's senior deputy governor. At the end of the year, however, they had not questioned Nunun Nurbaeti, who allegedly distributed billions of rupiah in traveler's checks to buy votes to help elect Miranda Goeltom.

On 31 March 2010, Gayus Tambunan, a tax directorate official, was arrested in Singapore on corruption charges. Gayus allegedly bribed police, prosecutors, and a judge during an investigation of his case in tax court. Following his arrest, police investigated and arrested several persons in the police Criminal Investigations Division (CID). Following this arrest, Gayus allegedly bribed prison officials to obtain temporary release from prison on a number of occasions and reportedly led an active social life including international travel.

On 10 May 2010, police arrested Susno Duadji, fomer head of the CID, on suspicion of involvement in several corruption cases. On August 4, the Supreme Court found As'ad Syam, regent of Muarojambi during the 1999-2004 period, guilty of corruption in the misuse of the regional government budget and sentenced him to four years' imprisonment.

Anticorruption reform appeared to have become a tool in a political power struggle with legislators and others criticizing members of President Yudhoyono's administration over the 2008 bailout of Bank Century. At year's end neither the KPK nor other investigators had found any evidence of fraud on the part of the government in the bailout. KPK leadership continued to come under attack during the year, in particular deputy commissioners Bibit Samad Rianto and Chandra M. Hamzah.

By law, senior government officials, as well as other officials working in certain agencies, are required to file financial disclosure reports. On 30 April 2010, the 2008 Freedom of Information Act, which grants citizens access to governmental information and provides mechanisms through which citizens can obtain such information, came into effect. The law allows for a protected class of "secret" information, including information on: state defense and security; law enforcement investigation and activities; public officials; and business interests of state-owned enterprises. At year's end many government entities were unprepared to implement the law. The Alliance of Independent Journalists reported no problems for the media in obtaining unclassified public documents from the government.