Cleaning the Network of Corruption Perpetrators in SOEs

ANTARA FOTO/RIVAN AWAL LINGGA

Finance director Andra Y. Agussalam of state-owned airport operator PT Angkasa Pura II wears a detainee vest after being examined in connection with alleged corruption in PT Angkasa Pura II (AP II) at the Corruption Eradication Commission (KPK) building in Jakarta on Friday (2/8/2019). The KPK arrested Andra and an employee of state-owned telecommunications company PT INTI, 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.

The disclosure of bribery cases among state-owned enterprises (SOEs) is very alarming. Cleaning the total network of corruption perpetrators in SOEs is a must.

The Corruption Eradication Commission (KPK) arrested finance director Andra Y. Agussalam of state-owned airport operator PT Angkasa Pura II (AP II), Wednesday (31/7/2019) evening for allegedly taking bribes from PT Industri Telekomunikasi Indonesia (INTI), a state-owned telecommunications company. The KPK named Andra a suspect along with Taswin Nur, a staff member of PT INTI (Kompas, 2/8/2019).

Corruption in state-owned enterprises needs to get attention because instead of decreasing, it seems to be increasing. Anti-Corruption Clearing House data in the 2004-2018 period noted there were 56 cases of criminal acts of corruption in SOEs/companies owned by regional administrations. The number of cases increased in the 2015-2018 period, namely by 11 to 13 cases. Before 2014, there were only around two to seven cases.

ANTARA FOTO/RIVAN AWAL LINGGA

An employee of state-owned telecommunications company PT INTI, Taswin Nur, wears a detainee vest in connection with an alleged bribery case at the Corruption Eradication Commission (KPK) building in Jakarta on Friday (2/8/2019). The KPK arrested two suspects, Taswin and Finance Director Andra Y. Agussalam of state-owned airport operator PT Angkasa Pura II (APII). The two were suspected of being involved in the bribery case of the baggage handling system (BHS) project to be operated by PT Angkasa Pura Propertindo (APP), a subsidiary of AP II.

The majority of corruption in SOEs is related to the procurement of goods and services within the state companies. The main mode is bribery between the SOEs and the private sector or the SOEs and politicians. The last case was bribery among the SOEs. The KPK was angry. Instead of encouraging the country\'s economy, the officers of the companies even plunder the state money.

Law No. 19 of 2003 concerning SOEs states that the purpose of establishing SOEs is to contribute to national economic development in general and state revenues in particular. The goal of pursuing new profits comes after.

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 suspects.

The law also emphasizes that members of the board of directors, commissioners and supervisory boards are prohibited from taking personal benefits, either directly or indirectly, from the SOE’s activities, other than their legitimate incomes. However, what happened was in the opposite. Instead of strengthening the country\'s finances, they undermine them for personal gains.

Since 2016, the KPK has actually launched efforts to prevent corruption in SOEs through the professional integrity program. Many SOEs have been involved. However, all of them are not enough.

A poll conducted by Kompas showed that the majority of respondents (76.5 percent) believed that corrupt practices in state companies could not be separated from the corrupt network. Therefore, the improvement carried out also needs to be thorough, by cracking down not only on the perpetrators, but also on the network. The cleaning also needs to be done from top to the bottom. The cleaning also should not be carried out only once, but it must be repeated, even continually.

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 suspects in the case.

This certainly is something for President Joko “Jokowi” Widodo to do in the next five years. Jokowi\'s mission in the first five years which was stated in the Nawacita, or nine-point development program, has not been achieved.