Corruption: An obstacle to regional security
Bantarto Bandoro, Editor, 'The Indonesian Quarterly', Centre for Strategic and International Studies, Jakarta
The statement by Singapore's Senior Minister Lee Kuan Yew that terrorist leaders are still at large in Indonesia was a big blow to us. Now, another big blow has hit the country. The Hong Kong- based Political and Economic Risk Consultancy (PERC) recently reported that Indonesia remains Asia's most corrupt country. PERC ranked the country the most corrupt among 12 national economies. On a scale of one to 10, Indonesia scored highest with a grade of 9.92.
The survey result seems to suggest the following: (a) Indonesia is still not serious in combating corruption and punishing corruptors; (b) the entire national legal system is in shambles; (c) state institutions are still weak, unaccountable and suffer from a lack of transparency; (d) there is an absence of integrity in public administration; (e) Indonesia has failed in poverty reduction strategies; and (f) there is a rampant lack of awareness on the part of officials of the negative impact of corruption.
Indonesia has long been the target of international criticism for its corruption. The historic relationship between power and wealth explains why corruption has been more pervasive in Indonesia than in many other countries.
The financial crisis that severely hit us in 1997 is believed to have been caused by mismanagement of the national economy. The crisis also has been attributed to widespread corruption in the forms of nepotism and cronyism and a government for hire. A clear example is the bribery of officials to influence government policy, judicial decisions and to obtain favored treatment by government agencies.
The change in national leadership in 1998 from Soeharto to B.J. Habibie was perhaps the apex of the people's fight against a corrupt government and their demand for good governance. At that time, corrupt leaders were replaced. People expected the change would result in a more transparent and accountable government. This did not happen.
A year or so following the regime change, charges of corruption began to emerge against the new leadership. Now, under the presidency of Megawati Soekarnoputri, Indonesia still cannot escape international criticism because of its too high tolerance of corruption.
There was in fact an anticorruption plan initiated by 15 countries of the Asia-Pacific region. Although non-binding, each participating country was to identify reform priorities and implement them, introduce strict sanctions against bribery of public officials and money laundering and establish codes of conduct and transparent public procurement systems.
Countries like Japan, Singapore and Vietnam endorsed the plan. But Indonesia and China were reportedly unwilling to commit themselves to the action plan (The Japan Times, Nov. 27, 2001). Indonesia seems to be disregarding the possible impact of corruption on regional stability, as well as the fact that corruption also facilitates transnational criminal activities.
Corruption, which manifests itself as extortion, will undermine the legitimacy of political and economic reforms, and may even threaten democracy itself. An even more insidious side of the corruption is its corrosive effect on regional security. Being the region's largest country, Indonesia has always been the focus of the strategic calculations of other regional and extra- regional powers.
But a seemingly weak and corrupt Indonesia will certainly result in a destabilizing domestic situation. The country will be highly vulnerable to other crimes such as the trafficking of drugs and people. Moreover, because citizens are the ultimate victims of corruption, they will continue to put strong pressure on the government to fight corruption more effectively.
The government's unresponsiveness will certainly lead to a more aggressive public, and this can disturb domestic security which in turn can significantly affect regional stability.
A corruption-free Indonesia is as important as its security role in Southeast Asia. But a driving force behind its fight against corruption seems to be nonexistent. Corruption is indeed one of the major destabilizing elements in newly emerging democracies such as Indonesia. Now we face the challenges of reform simultaneously with the problems of organized crime and corruption.
Insecurity is growing here because the state is perceived to be unable to perform properly basic functions such as justice, policing or even defense, which may also contribute to regional instability.
Thus, regional stability and welfare cannot be seen in isolation of domestic security. If the situation here worsens due to continued corruption and, because of this, weakened and eroded state institutions, Indonesia will be seen by organized criminals in Southeast Asia as being a safe haven for illegal regional networks for illegal activities.
Southeast Asia will also witness that a weak Indonesia is likely to be new source of regional instability. This would lead to an erosion in the regional confidence that Indonesia is performing a pivotal role in regional security. Southeast Asia also would witness a movement toward building regional anti- corruption agenda and plans.
Indonesia will not be able to escape being the target of regional cooperation in the fight against corruption; and we will also be accused of being a source of friction in regional multilateral relations, hence hindering regional efforts toward confidence-building measures.
There have been regional and international meetings on corruption. But fighting corruption requires sustained activity by governments inside their borders and, increasingly, in cooperation with other governments.
If Indonesia does not do anything, it will lose any competitive advantage it has against other countries. Corruption weakens Indonesia's ability to enhance international and regional diplomacy and compete in the world's marketplace.
The rule of law and anticorruption initiatives should now be the key elements of our foreign policy, so that confidence in government institutions can be promoted.