Corruption Eradication Trends in First-Half of 2015

Indonesia Corruption Watch (ICW) recently published a report on monitoring of corruption cases throughout Indonesia. ICW's research was administered on all corruption cases processed in investigation phase at various law enforcement agencies during the period of January to June 2015. The report, titled Corruption Eradication Trends: Semester I 2015, concluded that performance of law enforcement is not optimal.

During the first half of 2015, ICW monitored 308 cases involving 590 suspects. The aggregate potential state loss from these cases amounted up to Rp 1.2 trillion and the aggregate bribery amounted up to Rp 457.3 billion. Most of the cases was processed under the Attorney General Office (211 cases) with Rp 815 billion in potential state loss and Rp 550 million in bribery. The Police Force came second for processing 86 cases with Rp 310 billion in potential state loss and Rp 72 million in bribery. Lastly, KPK handled 11 cases with Rp 106 billion in state loss and Rp 395 billion in bribery.

In addition to measuring performance of law enforcement agencies in processing corruption cases, ICW's report also attempted to map out several other factors, specifically, modus operandi (MO) of corruption, background of suspects, regional spread, and corruption sectors.

The most frequently used MO of corruption are embezzlement (82 cases), budget misappropriation (64 cases), abuse of power (60 cases), and mark-up (58 cases). The research also noted that the least used MO are illegal fees (1 case), extortion (2 cases) and mark down (3 cases). Just like the previous year embezzlement dominated MO of corruption, when 99 cases were recorded during the first semester of 2014.

Seeing from the suspect's background, ministry and regional administration officials and staffs are the most common perpetrators with 212 individuals named as suspects, followed by private company directors, commissioners, consultants and staffs in second place with 97 suspects. In third place, 28 suspects have background as heads of district (kecamatan) or village (kelurahan, desa), 27 suspects were heads of region (governor/regent/mayor), 26 suspect were heads of administrative office and 24 suspect were parliamentarians or councilmen (DPR RI/DPRD/DPD).

Based on regional mapping, North Sumatera and East Nusa Tenggara (NTT) both came first with each investigating 24 cases, followed West Java, Central Java and East Java in joint second place with each investigating 19 cases,

In the research for the first semester of 2015, ICW began to classify corruption based on two main categories, infrastructure and non-infrastructure. Corruption in non-infrastructure occupy 55% out of all cases with 196 cases processed and a total state loss of Rp 411.4 billion. Meanwhile corruption in infrastructure occupy the remaining 45% with 139 cases and a total state loss amounting up to Rp 832.3 billion. Despite having smaller percentage in number of cases in prosecution, the total state loss in infrastructure is much higher compared to non-infrastructure corruption.

Non-infrastructure corruption occurred most in regional finance with 96 cases and a state loss of Rp 356 billion, followed by the education sector with 24 cases and potential state loss of Rp 18.7 billion, and the social sector with 21 cases and a state loss up to 21.1 billion. In infrastructure the dominant sector is transportation with 32 cases and potential loss of Rp 113.4 billion, then the health sector with 14 cases and potential state loss up to Rp 36.9 billion.

Based on this numbers, ICW acknowledged that law enforcement agencies prosecuted corruption cases moderately above the year-by-year average (253 cases) during the first semester of 2015. However the potential state loss they try to recover is well below the year-by-year average (Rp 2.7 trillion). This fact indicates that investigation of corruption cases is improving in terms of quantity, but declining in terms of quality: more cases but less potential recovery of state loss.

This research underlined that the above phenomenon is the straightforward result of the dropping performance of the Corruption Eradication Commission (KPK). KPK have contributed about 30% in asset recovery from state loss. The declining enforcement performance of KPK correlates directly with decreasing asset recovery from state loss. For the record, the decline in performance at KPK was starting to show after its two commissioners were named as suspects by the Police.

In order to revert this phenomenon KPK need to regain its form, and in this regard, KPK need full political support from the President. As widely known, the non-active Chairperson Abraham Samad and Deputy Chairperson Bambang Widjojanto have not been relieved from criminalization attempts against them. To effectively eradicate corruption in Indonesia, the President need to take decisive measures in order to protect corruption fighters – instead of corruption perpetrators – from attempts of criminalization.***

WEEKLY SUMMARY

Monday, September 14, 2015

• Indonesia Corruption Watch (ICW) released a research about Corruption Trends during the first semester of 2015. The report underlined a decline in performance of corruption investigation by law enforcement agencies that correlates with receding quality and quantity of cases.

• ICW's report revealed that in 308 cases, 590 individuals were implicated in corruption and bribery in the first half of 2015. The aggregated state loss from corruption cases amounted up to 1.2 trillion, while state loss from bribery amounted up to 475.3 billion.

• Potential corruption highlighted in development of infrastructures leading up to the Asean Economic Community, 2015.

• KPK affirmed that corrupt official will not have safe haven despite the planned Government Decree on Administrative Sanctions designed to provide protection for official from corruption charges in procurement administration.

• ICW called on the government to exclude corruption offenses from the new Draft of Criminal Code (KUHP).

• DPR RI step up discourse to make a Special Committee (Pansus) and exert the parliament's inquiry privilege in Pelindo case.

Tuesday, September 15, 2015

• KPK protest the inclusion of corruption offenses in the Draft of KUHP that was being deliberated at the House of Representatives (DPR RI).

• KPK prosecutors to reveal names and evidence in alleged corruption of hajj management that implicated Suryadharma Ali

Wednesday, September 16, 2015

• KPK confiscated a sheet of Kiswah from Kaaba as evidence, which suspect Suryadharma Ali believe to have no material worth.

• Attempts on supreme review of pretrial verdicts are being questioned. Many fear this move will cause law ambiguity as more pretrial appeals were recently filed by suspects of corruption.

• A main factor why corruption crimes are still rampant is difficult procedures in administering regional business licenses, forcing businessmen to bribe bureaucrats.

• Coordinator of Commission on Disappearance and and Victims of Violence (KontraS), Haris Azhar, urged new Chief of the Police Criminal Investigation Unit (Bareskrim) Anang Iskandar to clean-up controversies made by predecessor Budi Waseso.

• Fadli Zon insisted to include corruption offenses in Draft of KUHP

Thursday, September 17, 2015

• The panel of judges at Constitution Court (MK) were perplexed when reading the judicial review appeal on KUHP and Law on KPK filed by Otto Cornelis Kaligis.

• The plan to incorporate corruption offenses in the new revision of KUHP, currently being deliberated at DPR RI, can potentially bring the end of the bustling Corruption Court. If implemented, all corruption cases charged with KUHP will have examination and trials at the common criminal court, instead of the extraordinary corruption court.

• Commissions at DPR RI scramble to set up Special Committee (Pansus) and Working Committee (Panja) to investigate alleged mismanagement at Pelindo.

Friday, September 18, 2015

• Chairwoman of ruling party PDIP, Megawati Soekarnoputri, instructed members of PDIP faction at DPR RI to be caution when deliberating revision of Law No. 30/2002 about KPK.

• KPK decline request by OC Kaligis to unblock his bank account

• Former Regent of Bangkalan in East Java, Fuad Amin, a suspect of bribery and money laundering, admitted to receive gratifications frequently in his capacity as a religious figure

• AGO continue investigation of alleged corruption in procurement of electric cars in three State-Owned Companies (BUMN)

STATUS UPDATES

September 14

• OC Kaligis sued KPK at Constitutional Court (MK)
• Police officials gave different testimonies about the naming of suspects about the alleged corruption of in procurement of 10 mobile cranes at PT Pelabuhan Indonesia II (Pelindo)
• Judge at Jakarta High Court revoked the political rights of the accused in an alleged bribery for Central Tapanuli electoral appeal at MK

September 15

• Prosecutors detained four suspects in alleged corruption at the Election Supervisory Board (Bawaslu) of East Java
• The Electoral Commission (KPU) of Manado Municipality allegedly violate an electoral administration term for announcing Jimmy Rimba Rogi as a candidate in local election while he is still serving his sentence although released in probation­
• KPK questioned almost all members of DPRD of North Sumatera in 2014-2019 as well as several councilmen from the previous period in relation to the alleged bribery to cancel out attempts at exerting DPRD's investigative rights against non-active Governor, Gatot Pujo Nugroho

September 16

• Antasari Azhar is undergoing an assimilation period and have a chance of probation next year
• Attorney General Office (AGO) initiated examination of North Sumatera DPRD members and several provincial administration officials in alleged embezzlement of social aid (bansos) funds
• Provincial Police of NTT postponed legal process in corruption cases against candidates of local leaders as an attempt on neutrality during the simultaneous elections

September 17

• Police Grand Commissioner Aris Budiman appointed as new Director of Investigation at KPK and Adjutant Grand Commissioner Setiadi appointed as Head of Legal Bureau at KPK
• Former Secretary General at Ministry of Energy and Mineral Resources, Waryono Karno, was sentenced to 6 years in prison and to pay Rp 300 million in fines, equivalent to additional 3 months in prison, by the Corruption Court

September 18

• Police hand over case files of Abraham Samad and Bambang Widjojanto to AGO
• Trial of suspects OC Kaligis (lawyer) and Syamsir Yusfan (Medan Administrative Court / PTUN Medan clerk) on alleged bribery for three PTUN Medan judges continue at Corruption Court
• Mayor of South Tangerang, Airin Rachmi Diany, allegedly accepted holiday gratification from the City Health Office of South Tangerang and involved in money laundering
• Mayor of Bandung, Ridwan Kamil, was questioned at Attorney General of West Java in an alleged corruption of grant funds worth Rp 1.3 billion