When the state fails to create a secure environment

When the state fails to create a secure environment

Rudijanto, Contributor, Jakarta

President Susilo Bambang Yudhoyono's order to Indonesian
police chief General Da'i Bachtiar to capture the alleged
masterminds of bomb blasts, Nurdin M Top and Dr. Azahari, is a
re-assuring sign to improve the nation's security, but suicide
bombings are not the only danger for businesses.

When a bomb exploded in front of Australian embassy in
Jakarta's busy Jl. Rasuna Said in September this year, many
people strongly condemned the perpetrators of the attack,
especially as many innocent people became victims.

The Australian embassy bomb blast occurred just as police were
experiencing difficulty in bringing to justice the suspected
swindler of Bank Negara Indonesia (BNI), Adrian Herling
Woworuntu.

While not as dramatic as Australian embassy bomb blast,
Woworuntu's alleged swindle is believed to resulted in a
financial loss of about Rp 1.7 trillion (about US$188 million) to
BNI, and heightened the feeling of insecurity of doing business
in Indonesia.

Whether people like it or not, threats from bombers and
swindlers, combined with a weak and unreliable judicial system,
are a painful reminder of the reality of doing business in this
country.

Hong Kong-based security consultant Hill & Associates'
president director Nick Dudder precisely identifies the threats:
an opaque and unreliable judicial system, weak standards of
corporate governance, and security risks in the form of civil
unrest and terrorist attacks.

The US$188 million fraud case involving Woworuntu well
reflects the weak standards of corporate governance in this
country. The involvement of BNI's internal staff is obvious in
this case, prompting police to arrest some of the bank's
executives.

"In the Indonesian environment it is common for employees to
take pecuniary advantage of their position and benefit from
illegitimate business deals. This not only results in
significant financial loss for their employers, but also loss of
reputation and damage to brand names," Dudder said.

Taking all these sources of threats into account, appropriate
anticipatory action by companies operating in the country is a
must if they want to avoid trouble that may seriously affect
their bottom line.

President director of PT Securicor Indonesia (Securicor), Bill
Thomas, said that compared to multi-national companies, local
companies still lag far behind in terms of security protection
for their employees, customers and premises.

"Common arguments used by such local companies who do not take
security measures seriously are often along the lines of: 'there
has never been an incident here before', or 'who'll pay for it',
or 'we can't afford it'," Thomas said.

To anticipate all possible threats, Thomas said that companies
should take several steps, including acknowledging the
seriousness of major incidents, and assessing the threats and
their impacts in order to devise a plan.

"If this is beyond the capability of existing staff, there are
consultants and security companies who can offer advice," Thomas
added.

Far from people's assumptions that a security company's staff
consists of muscle-bound bodyguards, many personnel in fact come
from professional backgrounds in finance, accounting, law and IT.

Hill & Associates offers services to new companies planning to
enter the market. It also assists existing firms in helping them
evaluate risks in a particular venture prior to commitment.

The company also provides a comprehensive range of compliance
and corporate ethics related services, including assisting
companies conduct 'due diligence' on potential partners, fraud
assessment and fraud prevention programs.

Their range of high-tech services includes protecting data
networks and computer systems, and computer forensics, especially
in support of commercial enquiries where it is suspected that
employees may have contravened corporate policies and practices.

Hill & Associates is more of security consulting company
compared to PT Secom Indopratama (Secom). This subsidiary of
Japan-based private security company is a provider of both
security manpower as well as sophisticated security gadgets.

Secom offers three main services, namely Alarm Systems,
Management Services, and Security Guard Services and Training.
The Alarm Systems service includes 24-hour online security
monitoring by the company's control center, as well as supply and
periodic checking of Secom's equipment and systems.

"Secom has specialized in providing security services since
1964. We combine the systems, equipment, procedures and human
factors in a 'Man Machine System,'" said S. Rahardja, Secom's
president director.

Meanwhile, UK-based Securicor offers a full range of security
services, incorporating consultancy, manned guarding, mobile
security services, cash and high value transportation with
processing and storage, electronic systems, alarms and alarm
monitoring.

"All these services can be supplied on a stand-alone basis, or
in any combination to provide full integration, with enhanced
cost benefit as a one-stop shop," Thomas said.

With over 10 years of operation in Indonesia, Thomas stresses
that the company has experienced all the conditions that
prevailed over that period.

Rather than setting up their own security force, companies are
advised to focus on their own core business, leaving day-to-day
security in the hands of professionals.

"Companies should engage a security provider. Besides being
more secure to outsource it, companies can concentrate on their
core business activities," said Rahardja of Secom.

However, anticipating a more complex security situation,
Rahardja, appeals to all security firms to form an association of
security companies in order to keep industry standards high and
also to assist the Indonesian police in maintaining law and
order.

In the business of avoiding and minimizing risks, Rahardja
said that security companies and the insurance industry need to
forge better cooperation.