Australian investors urged to help fight bribery, corruption

Rita A. Widiadana, The Jakarta Post, Tanjung Benoa, Bali

While Indonesia was listed this year by Transparency International as the sixth most corrupt country in the world, efforts to fight against corruption here are heading in the right direction.

Emmy Hafild, secretary-general of Transparency International Indonesia, noted at the Indonesian Australian Business Conference on Wednesday that officials, businessmen and lawmakers who have been implicated in corruption cases are now more likely to be taken to court.

"Indeed, Indonesia still has a long way to go to eliminate corruption. It is really a mammoth task, but corruption charges against the once 'untouchable individuals' have shown positive signs in our fight against such practices," she said.

During Soeharto's New Order regime, state officials or powerful individuals could not be taken to court while the investment climate was dominated by Soeharto's family and cronies.

Under the decentralization scheme, businesspeople and investors now have to pay "extra fees" to numerous regional administration officials, from governors to subdistrict heads.

"Indonesia can't work alone to fight corruption. It has been a vicious circle. Australian investors also have to help us. It's part of your corporate social responsibility in helping us create good governance," she said.

Data from Transparency International Indonesia shows that Australian businesses are the least willing to pay bribes, while Indonesian companies are the most willing to pay bribes.

Australia, the ninth least corrupt country in the world according to Transparency International, has signed the Organization for Economic Cooperation and Development (OECD)'s Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.

Indonesia has an Anticorruption Law and Antitrust Law but bribery to advance business transactions remains rampant.

Australian businesses through the Indonesian Australian Business Council (IABC) are expected to develop a joint strategy to counter bribery.

"You can bring your corporate cultures into the Indonesian business community and share your experiences with us. You can also ban Indonesian embezzlers, currently hanging around in Australia, from entering your country," Emmy said.

Another speaker, HS Dillon, said corporate social responsibility (CSR) should not merely be an optional "add-on" to business core activities but should be the philosophy underlying the way in which business is conducted.

"Currently, CSR is often recognized as a community development program focusing more on charity programs such as building roads, supporting health programs and building water sanitation with communities as mere recipients."

Noke Kiroyan, president of the IABC, said CSR until recently was used as a synonym for corporate philanthropy.

In Indonesia, CSR has often been mistakenly regarded as a synonym for community programs, which was misleading, he said.

"CSR is the commitment of a business to contribute to sustainable economic development, working with employees and their representatives, their families, the local community and society at large to improve quality of life, in ways that are good both for business and for development.

"Fighting corruption is also part of a business's obligation. We have to help every party involved in the fight against corruption," he said.