Newly approved finance bill welcomed

Dadan Wijaksana, The Jakarta post, Jakarta

The passage of the state finance bill should signify the government's commitment to eradicating corruption although whether or not it will be effective depends on how the bill is implemented, experts said Friday.

Supreme Audit Agency (BPK) Chairman Satrio B. Joedono said the bill contained principles which provided solid ground for efforts to help eradicate the rampant abuse of state funds.

He cited article 35 of the bill.

"Article 35 stipulates principles that carry personal responsibility for those holding and using state funds. This is expected to reduce irregularities that keep on happening in the country," Billy, as he is nicknamed, told reporters.

Under the article, state officials abusing state funds must repay all money stolen from the state.

The House of Representatives approved the bill on Wednesday, which the government claimed was a milestone towards improving transparency, as well as accountability in managing state finances.

The government says the bill will help improve the implementation of good governance principles, expected to reduce irregularities in the use of state funds.

"I'm optimistic ... because it (the bill) contains international principles on good governance," said Minister of Finance Boediono Friday.

The bill also emphasizes the principle of equality before the law, meaning corrupt officials ranging from the head of a unit in a state project up to the minister or the head of a department or institution will face equal punishment ranging from fines to imprisonment.

All these were absent in the past, and had been used as justification for the fact that there had rarely been follow-up action taken whenever findings of irregularities were announced, including by the BPK. Despite having been the cause of huge losses to the state, irregularities are often left uncovered and those responsible have remained untouched.

To this extent, Billy agreed with the government over the necessity of the bill.

However, he warned the bill would be toothless in the fight against corruption, if a clear mechanism for implementation remained absent.

The mechanism of implementation will be stipulated in the upcoming bill on state treasury.

Billy said the struggle was not over yet because the country needed to make sure there was a logical connection between article 35 and the state treasury bill.

The government has submitted to the House the treasury bill at the same time as the state finance and state audit bills, all of which are considered one package.

Meanwhile, former finance minister Bambang Sudibyo hailed the bill as a huge leap towards eliminating corruption.

"But I doubt the effectiveness of the bill if it is not supported by other policies that discourage state officials from abusing state funds, such as increasing their salaries for instance," he told The Jakarta Post.

"We need to treat corruption eradication at both ends, one by strengthening punishment and the other by reducing factors which encourage state officials to steal state funds."