Tue, 07 Oct 2003

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.