Building anti-corruption compliance through national integrity system in Indonesia. A way to fight against corruption

Author:Anastasia Suhartati Lukito
Position:Faculty of Law, University of Surabaya, Surabaya, Indonesia
Pages:932-947
SUMMARY

Purpose The significant role of anti-corruption compliance should be encouraged to create good business and investment climate. Especially, in the circumstances of higher number of bribery and corruption cases, whilst preparing for Asian Economic Community, the necessary actions to reduce the financial crime and economic crime should be fostered into all aspects of business activities. To reduce bribery and corruption cases in Indonesia,... (see full summary)

 
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Building anti-corruption
compliance through national
integrity system in Indonesia
A way to ght against corruption
Anastasia Suhartati Lukito
Faculty of Law, University of Surabaya, Surabaya, Indonesia
Abstract
Purpose – The signicant role of anti-corruption compliance should be encouraged to create good
business and investment climate. Especially, in the circumstances of higher number of bribery and
corruption cases, whilst preparing for Asian Economic Community, the necessary actions to reduce the
nancial crime and economic crime should be fostered into all aspects of business activities. To reduce
bribery and corruption cases in Indonesia, National Integrity System as part of National Strategy on
Corruption Prevention and Eradication is urged to be conducted. With the implementation of National
Integrity System among all public or governmental institutions and private institutions, the institutions
itself will be strengthened. National Integrity System should be implemented through all the people,
process and technology in the organizations. So, at the end, the purpose of this paper is to prevent any
nancial crime, particularly in the Indonesian anti-corruption regime.
Design/methodology/approach – This paper explores and analyzes anti-bribery regulations and
the important role of National Integrity System as the prevention approach to build anti-corruption
compliance in Indonesia.
Findings The National Integrity System and Anti-Corruption Compliance can be viewed as
important elements for preventing any nancial crime. The new perspective is needed for all of the
public institutions and private institutions to build and implement National Integrity System in all
business activities. Furthermore, all of business society has a signicant role of developing the
sustainable good business environment in Indonesia. Encouraging National Integrity System in every
business sector is also a way to achieve the last purpose, which is to strengthen economic
competitiveness.
Practical implications – The paper can be a source to explore about the National Integrity System
and Anti-Corruption Compliance based on Indonesia perspectives.
Originality/value This paper gives contributions by encouraging the public and private
institutions to build anti-corruption compliance by implementing National Integrity System within
their organizational culture to prevent nancial crime and lead to sustainable economic growth.
Keywords Financial crime, Anti-Corruption compliance, Bribery cases, National integrity system
Paper type Viewpoint
Indonesia as one of the developing countries is very potential for investment, especially
for companies seeking for new opportunities. Nowadays, Indonesia is preparing for
Asean Economic Community, and according to International Bar Association
Conference, Mexico, Indonesia, Nigeria and Turkey (MINT) are new emerging global
economic giants. MINT GDP growth forecasts are tremendous, indicating that MINT
most likely will be changing the global economic landscape in the next few years
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1359-0790.htm
JFC
23,4
932
Journalof Financial Crime
Vol.23 No. 4, 2016
pp.932-947
©Emerald Group Publishing Limited
1359-0790
DOI 10.1108/JFC-09-2015-0054
(International Bar Association Conferences, 2015). But, apparently, the investment and
economic development in Indonesia was affected by numerous criminal acts,
particularly on corruption and bribery cases. Indonesian Law Number 31 Year 1999
concerning on Corruption Eradication, as the amended by Indonesian Law Number 20
Year 2001, stated that the corruption cases in Indonesia which are committed
systematically have been spreading so that they have not only inicted state nancial
losses but also have violated the social and economic rights.
Based on the Transparency International report, the score for Indonesia Corruption
Perception Index on 2014 is 34 (Transparency International, 2015a), which is slightly
increased compared with 2013 (the score was 32). Indonesia’s position is in 107 out of 175
countries being evaluated. Although the score showed some progress, the score is
considerably low as compared to any other Asian Countries such as Singapore,
Malaysia and Thailand. Therefore, corruption is still the major problem that Indonesia
faces as one of the developing countries. Corruption case is still a national issues and
concern in Indonesia, and corruption eradication efforts must be made in an
extraordinary way and a very systematic way to maintain sustainable economic
growth. As mentioned by Stephen Platt that corruption’s evil ows not just from the fact
that some individuals are able to become very rich by dishonest means; it causes untold
damage to the state itself from the diminution of public funds, the barriers to business
and fair competition, the wastage of international development aid and from the pillage
of natural resource wealth (Platt, 2015, p. 86).
Indonesian Corruption Eradication Commission through the Annual Report 2014
declared that during 2014, there were 58 corruption cases. Most of the corruption cases
were bribery, followed by goods and service procurement (Corruption Eradication
Commission, 2015). From the undeniable fact, one of the obstacles to strengthen the
public institutions and private institutions is due to the high percentage of bribery cases
and procurement of goods and/or services cases. These two cases are the majority cases
in corruption acts. From year to year, the bribery cases were still hold its position as the
higher corruption cases. Bribery cases and procurements of goods and/or services could
easily weaken the economic life and economic order in Indonesia.
Apparently, the condition is not just faced by Indonesia. It was quoted by United
Nations Ofce on Drugs and Crime that a number of governance indicators reveal that
corruption remains a signicant obstacle to development in several countries of the
region. Corruption is encountered throughout the process of harvesting and
manufacturing illegal wood-based products, migrant smuggling and working illegally,
among other crimes. Therefore, The UN Convention Against Corruption (UNCAC)
provides a comprehensive framework to strengthen anti-corruption programmes in the
region. By the end of 2013, all countries in the region will have undergone a UNCAC
compliance review related to criminal enforcement and international cooperation
capacity. Effective anti-corruption efforts require a whole-of-government and society
approach, including different sectors and branches of the government, civil society
groups and the private sector. Public engagement often makes a real difference
(UNODC, 2015).
With regards to corruption eradication in Indonesia, the government build
anti-corruption compliance by implementing National Integrity System to support
Indonesian Law Number 31 Year 1999, as amended by Indonesian Law Number 20 Year
933
Anti-corruption
compliance

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