WB report on graft<\/p>\n
I am responding to The Jakarta Post article Govt doubts WB
\nreport on graft of Aug. 20.<\/p>\n
Having been in Indonesia for going on six years, and having
\nworked on a variety of projects, I will state that my experiences
\nwould support closer to the 30 percent figure put forth by Dr.
\nJeffrey A. Winters from Northwestern University as being the
\n\"most likely\" amount of direct and\/or indirect losses due to
\n\"graft and corruption\", rather than the 20 percent quoted in the
\nAsian Wall Street Journal.<\/p>\n
However, not to dwell on the past but to move forward, there
\nis a management tool that would contribute significantly to
\neliminating the waste and inefficiency associated with
\ncorruption, collusion and nepotism (KKN) in the execution of
\nprojects within Indonesia. Or at least if it does not eliminate
\nit, will certainly help to isolate it and identify who is
\nresponsible (accountability and transparency).<\/p>\n
The concepts I speak of are called \"Earned Value\" (Also known
\nas Cost\/Schedule Control Systems Criteria (C\/SCSC) or Activity
\nBased Costing\/Management (ABC\/M)). The concept of Earned Value
\nmeasures \"what the project physically got for the amount of money
\nspent.\" Earned Value is measured in addition to the standard
\ntracking of Actual Costs vs. Budgets. The addition of the third
\ndimension is essential to managing projects effectively.<\/p>\n
The basic concept is endorsed as being a \"best practice\" by
\nvirtually all professional organizations that represent the
\nprofession of Project Management. This includes organizations
\nsuch as the U.S.-based Project Management Institute, the
\nAssociation for the Advancement of Cost Engineers International,
\nthe Australian Institute of Project Managers and the European-
\nbased International Project Management Association.<\/p>\n
The U.S. government has been using the concept of Earned Value
\nunder the name Cost\/Schedule Control Systems Criteria, C\/SCSC for
\nshort, since 1997. It is also known within the management
\naccounting profession as Activity Based Costing (ABC). While
\ndeveloped originally for the construction Industry and U.S.
\nGovernment Department of Defense contractors, the concept lends
\nitself equally well for adaptation to almost ANY project.<\/p>\n
These concepts are not foreign to Indonesia. They are taught
\nas part of most, if not all, Construction Management programs at
\nBandung Institute of Technology, University of Indonesia and
\nTarumanegara University, and are featured prominently in the
\nIndonesian textbook Manajemen Proyek (Project Management), by
\nImam Soeharto. There is no shortage of technical expertise in
\nthis field, as several Indonesian and expatriate companies
\noperating within Indonesia have formal training and experience in
\nusing this system, and some companies (both Indonesian and
\nmultinationals) have formalized it as part of their
\nbillings\/accounts payable procedures.<\/p>\n
To summarize, I am calling on the government of Indonesia to
\nformally recognize, endorse and implement the use of \"Earned
\nValue\" as the basis for executing all projects. Use of this
\nproven and internationally accepted \"best practice\" will
\ncontribute to a significant reduction in \"graft\" and other
\nillegal or unethical practices by formalizing accountability,
\ntransparency and auditability in the flow of funds for projects.
\nIt will also contribute to better and more efficient management
\nof our projects.<\/p>\n
PAUL D. GIAMMALVO<\/p>\n
Director- APM Project<\/p>\n
Management Center for<\/p>\n
Excellence Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/wb-report-on-graft-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }