1. Corruption and Indonesian Civil Society Organisations
Richard Holloway
Program Adviser on Anti-corruption and Civil Society,
Partnership for Governance Reform in Indonesia

2. CSOs fighting corruption: CSOs susceptible to corruption
What do we know about each group?
Is there any cross-over?
What can we recommend?
“Corruption is the norm in Indonesia, not the exception”

3. Government, Business and Civil Society – where is corruption most likely?
to rule and to govern
Business:
to make profits
Civil Society:
- to enable citizens to associate
- to improve the lives of the citizens
to hold the other two sectors accountable
to the citizens

4. Definitions of Corruption
Transparency International:
The misuse of entrusted power for private benefit
Corruption for NGOs:
Behaviour for personal gain, or for the benefit of another person or organisation, by people who claim to represent an independent non-profit organisation which works for the public good

5. Corruption in Indonesia
Systemic corruption within the civil
service and armed forces
- positions bought and sold
- tax office extorts payments
- govt. budgets based on slush funds
- patronage networks of illicit income
Systematic state plundering by Suharto
Astonishing stealing from state
recovery program

6. Strong Rhetorical Call for an end to KKN since Reformasi
Very little action
All anti-corruption initiatives betrayed
by political power games
Increase in “democratic corruption”
(decentralization, party politics)
Very little prosecution
Attention to high profile cases, not to
systemic corrupt practices

7. Anti-Corruption NGOs (1)
The only real activists against KKN
In Jakarta and throughout most of
the country
Strongly supported by the Press
High profile
Sincere and principled

8. Anti – Corruption NGOs (2)
didn’t exist before 1998 – except
human rights NGOs
many driven by desire to punish big
fish
culture of “demos”
few horizontal links with other NGOs
few addressing systemic corruption

9. NGOs being Corrupt Pretenders: Venal organisations
using the mask of an NGO
Well-intentioned: NGOs using
corrupt practices to benefit the
NGO
Blurring the lines: as high
principles move into bad practices

10. Pretenders Red plate NGOs NGIs Profit making contractors
remember Suharto’s “foundations”
rich pickings in an open field
culture of impunity

11. Well-intentioned
Faced with easy foreign funding and difficult rules of engagement, many NGOs hoodwink the donors to benefit their organisations
to pay overheads
to support the organisation long term
to implement “their” projects

12. Blurring of the lines Corrupt practices require corrupt behaviour
Surrounding environment supports
corrupt practices
Pressure from political parties
The culture of “envelopes”

13. Characteristics of Honest NGOs
Recognize the dangers of corruption
and include prohibitions in Codes of
Ethics
Regularly check their activities
against their mission
Learn about corrupt financial
practices so as to recognize them
Be accountable to the people you
aim to be helping

14. Recommendations: to pro-mote more anti-corruption NGOs
branches in all districts
membership organisations with
local funding
training in understanding systemic
corruption
regular links to local media
links to other NGOs and citizens
associations

15. Recommendations: for donors
much more user friendly donor
practices
building organisations not
implementing projects
expose and prosecute corrupt
NGOs

16. Recommendations for NGOs
Create professional associations
for NGOs with accepted Codes of
Ethics coving corruption
Certification of NGOs to belong to
the professional association
Sanction members of the
professional association who are
found to be corrupt

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