Indonesian Political, Business & Finance News

Corruption in Indonesia

| Source: JP

Corruption in Indonesia

While The Jakarta Post articles of Mr. Jeffrey A. Winters,
U.S. Northwestern University professor, and author, Mr. Sri
Pamoedjo Rahardjo, former regional development bank officer,
Indonesian World Bank country director, Mr. Dennis de Tray, and
others (i.e. the letter written by Suharsono Hadikusumo
concerning Finance Ministry corruption practices, in the Sept. 28
edition) serve to keep the subject of government related
corruption in Indonesia before the general English language
reading public, little else is apparently accomplished.

The World Bank and the Government of Indonesia have announced
through their spokespersons their intent to initiate actions for
the elimination of corruption in their program management.
However, neither agency has yet presented a methodology to the
public, for the transparent development of such actions,
especially for actions which will involve the public. It should
be obvious now to the World Bank and the government of Indonesia
that the general public, including expatriate businessmen and
individuals, have a vested interest in promoting and developing a
clean government in Indonesia.

The World Bank and the government of Indonesia need to
formulate transparent corruption elimination action plans, and to
incorporate in the action plans methods for obtaining the
knowledge of all those who have been participants in corruption
practices, whether such participation was willful and direct, or
of a peripheral nature. Through personal experience in Indonesia,
the writer has knowledge of several instances of corrupt
practices, and I can assure Mr. Rahardjo that the siphoning of
loan funds and government funds is far from theoretical only.

The World Bank may already know that representatives of
foreign firms practicing in Indonesia, firms who have had to pay
under the table to obtain and maintain services contracts, have
expressed their willingness to make known the methods and extent
of corrupt practices related to their projects. Responsible
agencies having a need to know, may make an inquiry to the writer
for information related to corrupt practices.

The writer will respond to all inquiries received from verifiable
agency representatives.

Quite understandably, Mr. Dennis de Tray's interests are to
defend the World Bank, and in doing so his own record as a World
Bank manager in Indonesia. Admittedly, the Bank's record is
tarnished with respect to its long term inaction concerning
corrupt government practices in Indonesia, but hardly deserving
of the irresponsible remarks made by Mr. Jeffrey A. Winters.
For Mr. Winters to suggest that the World Bank is morally or
legally responsible for funds misappropriated by the government
of Indonesia is definitely a grandstanding maneuver on his part.
What is his motive? Certainly, he is sufficiently knowledgeable
to realize that the Bank has operated in accordance with its own
Articles of Agreement, and that the Bank's failure to prevent the
covert corrupt practices of its client does not expose the Bank
to financial liability for its clients' losses (which are
undocumented at this time). For Mr. Winters' to divert the
Indonesian people away from their focus on reform and a clean
government is a disservice to those for whom he pretends to have
compassion.

C. DUPUIS

Jakarta

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