Keynote Address by President RI on International Conference of Foreign Bribery, Bali, 10 Mei 2011

Selasa, 10 Mei 2011
Di baca 760 kali

KEYNOTE ADDRESS

BY

H.E. DR. SUSILO BAMBANG YUDHOYONO

PRESIDENT OF THE REPUBLIC OF INDONESIA

ON

INTERNATIONAL CONFERENCE OF

FOREIGN BRIBERY IN BUSINESS TRANSACTION 2011

NUSA DUA, 10 MEI 2011

 

 

 

 

Assalamu'alaikum Warahmatullahi Wabarakatuh,

 

Peace be upon us all,

 

Oom Swasti Astu,

 

Excellencies Ministers and Ambassadors,

 

Honorable members of the United Indonesia Cabinet II,

 

Honorable Head of the Corruption Eradication Commission of Indonesia (KPK),

The honorable Deputy Secretary General of OECD,

 

Distinguished representatives of law enforcement and corruption eradications of the G-20, members of OECD, APEC, and Asian Development Bank,

 

Honorable Governor of Bali,

 

Ladies and Gentlemen,

 

On behalf of the Government and the people of Indonesia, I am pleased to welcome all of you, the representatives of law enforcement agencies and corruption eradication commissions from member of G-20 and APEC countries, as well as national and foreign observers.

 

This gathering is truly a corruptor's worst nightmare. Thank you for taking part in this very important conference, to talk about combating bribery in international business transactions.

 

Combating corruption has been a cornerstone of my administration.  This is because fighting corruption is not just a moral imperative. It is a democratic, political, social and economic imperative. 

 

How does this menace of corruption and bribery attack our economies?  At the very basic level, it incurs costs, in the form of unnecessary mark-ups, in any project. Do you know who pays for those costs?  We do. 

 

Many companies include these extra fees in their overhead, in their production costs. They then pass on the costs to the consumer, in higher prices.

 

We also pay in inferior services.  Money spent on bribes means that money is not spent on improving roads, schools, and hospitals.  It means food and drugs that do not meet safety standards. 

 

By turning a blind eye to a bribe here and a bribe there, we are compromising the quality of life for ourselves, our parents, our children.  We all pay the price. Ultimately, bribery robs all of us of true progress and economic growth.

 

Once we are all paying the true costs of corruption and bribery, mistrust of the government and their corporate partners becomes inevitable.  And such mistrust can eventually swell into political discontent.  As we all know, political instability is not a solid foundation for economic growth.

 

Yet today, systemic corruption continues, and in developing countries, it does so by taking advantage of the global financial network. The corrupt exploits the international financial network, covering their tracks in foreign jurisdictions.  As long as these safe havens exist, people will continue to siphon money and send them overseas. We cannot keep on supporting this endemic problem. 

 

The World Bank estimates that bribery amounts to some 3 percents of the world's economy, or more than $1 trillion US dollars.  Bribery is prevalent in tax evasion efforts.  It is also rife in the investment sector, particularly foreign investment. 

 

But law enforcement agencies are not keeping idle.  Some 150 companies and individuals, in more than 10 countries have been charged with bribery and duly punished.  Today, some 250 cases remain under investigation.  Yet, these efforts have not been enough.

 

Ladies and Gentlemen, 

 

I can talk at length about the nature and practice of corruption.  But I do not want to merely recount corruption's negative impact.  I want to focus on how to get rid of corruption.  I want to talk about how to slowly but forcefully attack corruption, so that it can no longer take its poisonous root in our society. Let me share with you a few lessons I have learned as President of Indonesia.

One of the most important lessons Indonesia has learned in combating corruption is that, the fight must be a systemic effort. As I said, it is a marathon, not a quick sprint, and it will require perseverance and support from all of us to get us to the finish line.

The effort must be holistic, and it must incorporate the system. Which means we must dig deep and start from the grassroots, working laterally to include all the stakeholders at all levels, and working our way to the top, to ensure that the leadership is also involved in combating graft.

 

A systemic effort means protecting and nurturing the integrity of the system, from the bottom-level regulations that allow for mark-ups and petty cash disappearing, to the lack of transparency involving high-level deals. 

 

A systemic effort means reforming the bureaucracy, and making sure the bureaucrats are paid enough, so that they will not seek income from outside their salaries. 

 
A systemic effort means establishing institutional supervisory controls and independent Ombudsman that can spot irregular transactions and act against them without political pressure.

 

Getting all stakeholders on board is essential.  Any anti-corruption measure cannot succeed without the participation of the private sector.

 

A systemic effort requires continuous communication between government agencies and businesses, and making sure that both sides understand and adopt the same goals.

 

Corruption is perpetuated not only by individuals, but by a system that gives these individuals a safe haven.  We need to fix the system, break down its walls and build transparent new ones, so that the corrupt can no longer hide in the system.

Last week, I met with the chairman and the team of the Corruption Eradication Commission (KPK), and we underlined the importance of working together.  We also agreed that, one of our priorities should be to strengthen collaboration between government institutions, in our collective effort to minimize and prevent potential mismanagement of state funds.

And that discussion leads me to this observation: that it does not matter how cleaned up the system and structure is below, if at the top, corruption goes unpunished. Keeping the top clean is a rule that cannot be broken in the fight against corruption.

I say this because corruption is a poison that knows no end.  In many cases, the poison leaks slowly, but surely.  And following the laws of gravity, a simple spill at the top can become a flood at the bottom, drowning the foundation of the system.  Once the grassroots sees that their leaders are not committed to combatting corruption, they will lose their faith also in the cause. 

Confidence in society's collective ability to overcome bad habits then unravels.  Leaders lead by example. Great leaders spark greatness in their followers. Flawed leaders infect and disable society with their shortcomings.

Yet, here is another important lesson, and it may be a difficult one for critics to accept. The lesson is this; the fight against corruption is not a zero sum game.  It is always difficult to sweep the floor entirely clean in one go. You will not get every corruptor in jail. 

But if society can learn from good examples, it can also learn from the bad.  And what is important is that the so-called big fish corruptors are caught, tried, and convicted, to set an example for all the little fish trying to become bigger fish.

This can be an unpopular strategy, inciting criticisms of unfairness.  But it is a realistic strategy. It is not merely pragmatic. By focusing on important cases, one provides society a chance to reform. A sweeping purge can be disabling, robbing the bureaucracy of officials and the business community of entrepreneurs.

 
While we must move forward and be true in our fight against corruption, we also must be measured in our zeal. This managing of expectations applies in our global efforts too.  Each nation should prioritize what their focus should be, and how best to lead by example.

Hence, one strategy is to morally distinguish between corruption carried out by high-level officials and tycoons out of pure greed, and corruption carried out by low-level bureaucrats merely trying to survive the day out of desperation.

That is why my administration has raised salaries across the board, in some cases tripling civil servants wages, as a preventive measure against graft.  The underlying foundation of this strategy is our belief that people are essentially good, and that most of us want a better future for our children, full of opportunity, and free of corruption.

There will always be some people who do not fall into this category, and in any other society, they would be criminals too.  But I believe the majority wants society to work and want Indonesia to prosper, and in order to do so, they too must play their part in combating corruption.

Another very important lesson about fighting corruption is that it must be a sustained effort. One can not carry out an intense anti-corruption campaign, and then relax your efforts and expect the same results.  It is like keeping your lawn healthy: if you do not mow, fertilize, and water it regularly, the weeds will take over.  The weeds will appear little by little, on the edges, but they multiply quickly, and they overcome the roots of the grass, and the grass eventually disappears.

If we relax just a little in the face of this menace of corruption, it will again take over and cripple society. A sustained effort will not produce overnight results.  It took Hong Kong at least 15 years of a sustained anti-corruption campaign, to see real gains, and now it is one of the world's cleanest economies.  Hong Kong shows that perseverance and commitment works.

The example of Hong Kong also shows that corruption does not discriminate.  It is global, and respects no national boundaries.  So while tackling corruption, one must not only look for weaknesses inward, but also look for weaknesses outward.  A successful anti-graft campaign needs international cooperation, in tracking down money laundering and overseas account, as has been said by the chairman of KPK that international cooperation includes cooperation, extradition, mutual leadership, assistance, and others.

Cooperation is also necessary for cross-border investigations and prosecutions. Learning one another's best practices is also helpful.  We should encourage more bilateral and multilateral anti-corruption campaigns.  The corrupt should know they have nowhere to hide.

As I said earlier, my administration does not tolerate corruption.  We are hard at work at changing the system from the inside out.  We are in the process of reforming our judicial system, with considerable advances in recent years.  The Corruption Eradication Commission (KPK) has been prolific in their investigation of graft, with much success.

We are targeting bureaucratic reform, raising salaries, and improving accounting systems. The business and investment sector has not been spared of institutional changes.  We have established the Court for Business Competition, which doles out both civil and criminal punishment for offenders.

We have stepped up our international efforts too.  Nearly five years ago, we ratified the United Nations Convention Against Corruption (UNCAC). Through our membership in the G-20, we have introduced initiatives that will hopefully reform the international finance system, making it more transparent and accountable. 

 

We welcome the formation last year of the G-20's Anti-Corruption Working Group, which Indonesia co-chairs with France. This was a concrete step taken by members to cooperate in reforming law enforcement against corruption, extending prosecutorial jurisdiction beyond borders. The Working Group will meet after this conference, and high on our agenda is the topic of increased cooperation between nations.

Indeed, there is so much that we can accomplish together. Together, we can enhance the surveillance of international finance. We can enhance our surveillance of money laundering, and enhance prosecution against this practice. We can criminalize foreign bribery. We can bar the corrupt from entering our countries. We can strengthen international cooperation in law enforcement and asset recovery. We can protect whistle-blowers. 

We can develop productive partnerships with tax haven countries in tackling and eliminating money laundering.   The sky is the limit for what we can do.  Let us start these practical deeds together.

 

The OECD forum has provided another opportunity. Along with 37 other nations, Indonesia fully backs the OECD Convention on Foreign Bribery.  Another step forward is the Anti-Corruption Action Plan for Asia and the Pacific, which 28 countries have signed since its launch in 2001. 

And we wholeheartedly support the OECD's initiative to raise global awareness of foreign bribery, starting with a worldwide media outreach program. 

 
We hope every country will adopt new measures to curb and eliminate bribery, and portray foreign bribery for what it is, a crime.  Business and law schools are already on board, including the negative impacts of foreign bribery in their curriculum. 

Indonesia also continues to revise our legislation according to UNCAC's mandate.  We want to ensure that every available legislation will counter any corrupt behavior, particularly those with a trans-national dimension. 

 

Excellencies,

Ladies and Gentlemen,

I would like to conclude by commending everyone here for all their efforts so far. Indeed, we should remind each other of our success stories, and learn from them. There are many best practices available in our respective anti-corruption campaigns, and in government-business partnerships, and we should adopt them when appropriate.  We do not have to re-invent the wheel, but we should share tips on how to best drive each other forward.

Please, take this opportunity before you today, in this gathering, to share your successes. I wish you have a successful conference. May we continue to strengthen our commitment for a more prosperous, democratic, and corruption-free world. 

I thank you

Wassalamu'alaikum Warahmatullahi Wabarakatuh

Oom, Shanti, Shanty, Shanty, Oom

 

 

 

Asisten Deputi Naskah dan Penerjemahan,

Deputi Bidang Dukungan Kebijakan,

Kementerian Sekretariat Negara RI