Anti-Corruption System at SOEs Still Weak

KOMPAS/RADITYA HELABUMI

Corruption Eradication Commission (KPK) commissioner Basaria Panjaitan (right) watches as two KPK officers prepare to present cash evidence during a press conference on Thursday (1/8/2019) at the KPK’s Jakarta headquarters. The KPK seized cash totaling US$96,700 during its investigation of a bribery case concerning a baggage handling system (BHS) project managed by PT Angkasa Pura Propertindo, a subsidiary of PT Angkasa Pura II (AP II), and has named AP II finance director Andra Agussalam and PT INTI employee Taswin Nur as suspects.

JAKARTA, KOMPAS — Antigraft measures at state-owned enterprises (SOEs) remain weak, with loopholes that allow corrupt practices like bribery and gratification, indicating that the SOEs Ministry needs to bolster its internal systems to combat corruption at SOEs.

The Corruption Eradication Commission (KPK) on Wednesday evening arrested finance director Andra Y. Agussalam of state-owned airport operator PT Angkasa Pura II (AP II) for allegedly taking bribes from PT Industri Telekomunikasi Indonesia (INTI), a state-owned telecommunications company.

The KPK has named Andra and PT INTI employee Taswin Nur as suspects in the bribery case and confiscated cash worth S$96,700 (Rp 1 billion). The money was allegedly a kickback that was paid to Andra for an Rp 86 billion baggage handling system (BHS) project to be operated by PT Angkasa Pura Propertindo (APP), a subsidiary of AP II.

PT APP had planned to hold a tender for the project, but Andra instead asked the company to assess the direct appointment of PT INTI as the project contractor.

"Bribery between two SOEs like this [case] is quite alarming, and it is contrary to [the principles of] business ethics," KPK deputy chairman Basaria Panjaitan said during a press briefing on the case held Tuesday at KPK headquarters in Jakarta.

KOMPAS/RADITYA HELABUMI

A Corruption Eradication Commission (KPK) officer holds up confiscated Singapore dollar banknotes during a press briefing on Thursday (1/8/2019) at the KPK’s Jakarta headquarters. The KPK seized cash totaling S$96,700 during its investigation of a bribery case concerning a baggage handling system (BHS) project managed by PT Angkasa Pura Propertindo, a subsidiary of PT Angkasa Pura II (AP II), and has named AP II finance director Andra Agussalam and PT INTI employee Taswin Nur as suspects.

SOEs Ministry secretary Imam Apriyanto Putro said that minister Rini Soemarno frequently reminded SOE management to work professionally and to prioritize good corporate governance.

The ministry also has an independent mechanism for appointing SOE directors that prioritizes integrity. "The [requirement] of integrity must be met," said Imam.

According to the KPK, the antigraft body has legally processed at least 56 SOE employees in 2004-2018 for alleged corruption. The primary corrupt practice used was bribery, which generally takes place between SOEs and private parties or politicians.

The KPK initiated efforts to prevent corruption at SOEs through a professional integrity program it launched in 2016. To date, as many as 132 SOEs and private companies have taken part in the program.

In 2017, the KPK published guidelines for preventing corruption in business activities.

However, according to a Transparency International Indonesia (TII) study on strengthening anti-corruption measures at SOEs, no change was seen in the average corporate transparency score among SOEs, which remained 3.2 on a scale from 0 (least transparent) to 10 (most transparent).

KOMPAS/RADITYA HELABUMI

Two Corruption Eradication Commission (KPK) officers present Singapore dollar banknotes during a press briefing on Thursday (1/8/2019) at the KPK’s Jakarta headquarters. The banknotes were part of a cash haul worth S$96,700 that the KPK seized during its bribery investigation into a baggage handling system (BHS) project managed by PT Angkasa Pura Propertindo, a subsidiary of PT Angkasa Pura II (AP II). The KPK has named AP II finance director Andra Agussalam and PT INTI employee Taswin Nur as suspects in the case.

TII secretary-general Dadang Trisasongko said that the current condition indicated that the anti-corruption system at SOEs was still weak. "The anti-corruption system is not only [about] regulation. It also involves assistance, monitoring and supervision from the SOEs Ministry to ensure that a company policy is in place for outlining and implementing the anti-corruption system," he said. (IAN/FER/INK)