Businesspeople fight graft

Businesspeople fight graft

Cynics who are all too familiar with collusive practices
between businesspeople and government officials certainly
wondered why the Indonesian Chamber of Commerce and Industry
(Kadin) suddenly declared a nationwide war against corruption.
After all, corruption, collusion and nepotism, which were
hallmarks of the authoritarian Soeharto administration, benefited
mostly the business community.

Skeptics who view the government's political will and ability
to fight graft with hopelessness might simply discard as a
publicity gimmick Kadin's declaration last week of its National
Campaign Against Bribery for 2003-2004 and National Movement
Against Bribery for 2005-2015.

Such cynicism and skepticism are totally understandable, given
the public's perception that corruption has not decreased at all
during the reform era, which was ushered in by the ousting of
the Soeharto regime in May 1998.

Graft practices and various other forms of malfeasance have
instead been increasing and expanding, as chairman of the
Indonesian Employers Association Sofjan Wanandi pointed out.
International corruption watchdogs have also consistently ranked
Indonesia among the most corrupt countries in the world.

What then is the meaning of such a rhetoric exercise, as the
one last week by Kadin that was launched with a big bang and so
much fanfare amid the seemingly futile fight against corruption?

For a start, Kadin's move convinced us that the war against
graft has not ceased at all. More encouraging is Kadin's
initiative as it is businesspeople, so far mostly seen as the
supply of corruption, who are now emerging as the vanguard
against all kinds of malfeasance. The move is addressing the
supply-side of corruption.

Certainly, Kadin has yet to see through its pledge. But we
should give the business association the benefit of the doubt.
After all, judging from the remarks made by Kadin chairman
Aburizal Bakrie during the declaration of the war against
corruption, the chamber seems to know what the war against
corruption is really about and is realistic enough on how to go
about battling the problem.

Bakrie said that members of the business community, already
fed up with the corrupt system, are now increasingly aware that
they cannot continue to survive with so much corruption, which
has steadily eroded their competitiveness. Businesspeople have
been realizing, especially after the 1997 economic crisis, that
corruption increases the costs of business, distorts the market
and drives away investment.

The economic crisis jolted most businesspeople into realizing
that corruption creates an environment of uncertainty in business
operations because once they bribe someone, they will receive
further demands. And if they don't get what they bribed for, they
are in no position to complain as they themselves broke the law.
This vicious circle will continue as businesspeople who bribe are
vulnerable to blackmail and even threats.

Kadin seems realistic enough not to expect quick results. Such
an attitude is necessary for a campaign that will certainly take
a lot of time because the movement will require a change in
attitude in the private and government sectors, and in the
public's perception about corruption.

The experiences of most other countries, which have made
significant progress in combating corruption, show that fighting
graft through business associations protects individual companies
from reprisal. Moreover, business associations allow companies to
present a stronger front vis-a-vis the government in pushing for
reform and provide a structure that enables businesses to
coordinate their positions against bribery.

Kadin rightly decided to spend the next 15 months on concerted
efforts to instill among its members a strong anticorruption
stance and to build up coalitions with non-governmental
organizations and other groups within society in fighting graft,
including mass media organizations. These efforts will help gear
up the public-opinion environment for the national movement
against corruption.

The Kadin move deserves the full support of NGOs and mass
media organizations as well as the public in general, because
only with such well-coordinated coalitions will the nation be
able to fight corruption, which to date is strongly
institutionalized within the government and deeply rooted in the
business sector.