Mon, 05 Oct 1998

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