Mon, 20 Oct 2003

Corruption is the root of all evil: Kwik

The Jakarta Post, Jakarta

The State Minister of National Development Planning, Kwik Kian Gie, said all the nation's problems stemmed from rampant corruption, collusion and nepotism, known by the Indonesian acronym KKN.

"KKN is the root of all evil," Kwik told graduates of the Indonesian People's Institute of Administration (Stiakin) on Saturday.

He said KKN had destroyed the conscience, mentality and even integrity of decision makers, leading to nonsensical policies.

"We are now witnessing the moral decadence of state officials at almost all levels, as reflected by the rampant practice of KKN... it also happens within business circles," Kwik said.

As an executive of the ruling Indonesian Democratic Party of Struggle (PDI Perjuangan), Kwik once rated his party among the most corrupt. His statement was heavily criticized by his colleagues, some demanding he exit the party.

Kwik said KKN within the country had caused Rp 180 trillion (US$21.4 billion) in state losses, not to mention the alleged misuse of routine, regional and development expenditures in the budget amounting to about Rp 35 trillion.

Citing further cases, he said stolen sand, fish and timber cost the country $8 billion, while the wasted subsidy for 10 recapitalized banks reached Rp 14 trillion last year.

"KKN in the state gas and mining firm Pertamina and other state enterprises and the blackmail of banks that received blanket guarantees by officials from the Bank Restructuring Agency (IBRA) are the worst examples," Kwik said without elaborating.

The Supreme Audit Agency (BPK) announced in August the alleged misuse of funds worth Rp 20.9 billion by Bank Indonesia and IBRA.

However, the central bank denied the allegations.

The seemingly rampant corruption in the country was recently disclosed by the Berlin-based Transparency International which ranked Indonesia the sixth most corrupt country in the world.

To combat the corruption, Kwik suggested the implementation of a "carrot and stick" or reward and punishment system, whereby civil servants and the military would be appraised according to their performances.

"Those with a heavier workload and greater responsibilities deserve higher salaries. The structure of a remuneration system must be formulated in a fair and proportional way," he said.

"If they have already received incentives but are still corrupt the 'stick' or punishment should be heavier," he said.

He recommended the death penalty or life imprisonment for convicted corruptors.

"Most rulers are corrupt because they are driven or persuaded by wives, husbands or children. The form of punishment could be to declare them bankrupt," he said.

Kwik underlined that the eradication of corruption should start from the top leader, who he said must set a good example.

"They must not commit KKN, otherwise they will face heavy punishment. (But) they have to get tough with corrupters as well," he said.