Corruption in Indonesia

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Combating Corruption in Indonesia
Enhancing Accountability for Development

World Bank East Asia Poverty Reduction and Economic Management Unit October 20, 2003

Acknowledgements
This draft discussion report is the product of a core team consisting of Sarwar Lateef (task team leader), Chris Bennett, Bert Hofman, David Hawes, Merly Khouw (consultant), Anne-Lise Klausen, Debbie Palmer (Partnership for Governance Reform in Indonesia), Naseer Rana and Rajiv Sondhi. Peter van Tuijl (Partnership for Governance Reform in Indonesia) contributed a note on the Indonesian police. The report drew heavily on a number of unpublished Working Papers prepared by: Stephen Baines (British Council) on education; Chris Bennett on forestry; Dyan Shinto Ekopuri on the new anti-corruption institutions; Bert Hofman, Kai Kaiser, Günther G. Schulze and Andrea Fitri Woodhouse on decentralization; Merly Khouw (consultant) on banking; Phil Keefer on the political economy of anti-corruption; Anne-Lise Klausen and David Hawes on infrastructure; Barbara Nunberg et. al. on civil service reform; Sebastiaan Pompe (IMF) on the courts; John Quah (consultant) on the civil service; Naseer Ahmad Rana on procurement; Rajiv Sondhi on financial management; Stefanie Teggemann on corruption and the poor and Andrea Woodhouse on corruption in the Kecamatan Development Project. Peer reviewers were Helen Sutch, Joel Turkewitz and Ross McLeod. Staff support was provided by Walter Meza-Cuadra and Lieke Sastrosatomo. The report also benefited from helpful comments from: Stephen Dice, Amanda Green, Scott Guggenheim, Joel Hellman, Yoichiro Ishihara, Behdad M.H. Nowroozi, Sebastiaan Pompe (IMF), Jessica Poppele, Unggul Suprayitno, Stefanie Teggemann, Anthony Toft and Dana Weist. The report was prepared under the general guidance of the Sector Director, Homi Kharas; the Sector Manager, Barbara Nunberg; and the Country Director, Andrew Steer. This volume is a product of the staff of the World Bank, and the judgments made herein do not necessarily reflect the views of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this report and accepts no responsibility whatsoever for any consequence of their use.

ABBREVIATIONS AND ACRONYMS

Anti Corruption Agency Asian Development Bank Attorney General Office Regional Budget Indonesian Association of Forest Concessionaires Absent Without Leave AWOL Payment Memo BAP BAWASDA Badan Pengawas Daerah Bank Central Asia BCA Bank Dagang Nasional Indonesia BDNI Bank Indonesia BI National Civil Service Agency BKN Bantuan Likuiditas Bank Indonesia BLBI Supreme National Audit Agency BPK Financial and Development BPKP Supervisory Board Central Bureau of Statistics BPS Bank Umum Nasional BUN Special Allocated Fund DAK General Allocation Fund DAU Daftar Isian Kegiatan DIK Daftar Isian Proyek DIP Director General of Budget DJA House of Representatives DPR Regional Parliament DPRD Electricity Market Supervisory EMSA Agency Energy Sales Contract ESC National Business Association GAPENSI State Policy Guidelines GBHN Governance and Decentralization GDS Survey ACA ADB AGO APBD APHI

GOI IBRA ICW IDA IMF INPRES INT IPCOS IPP JBIC KDP KKN KKPPI KORPRI KPPOD KPKPN KPU LK MENPAN MOF MOHA MPR NPL NGO NU PAN

Government of Indonesia Indonesian Bank Restructuring Agency Indonesian Corruption Watch International Development Association International Monetary Fund Presidential Instruction Institutional Integrity Institute for Policy and Community Development Studies Independent Power Producers Japan Bank for International Cooperation Kecamatan Development Program Korupsi, Kolusi, Nepotisme Acceleration of Infrastructure Development Association of Civil Servants Regional Autonomy Watch Commission to Audit the Wealth Of State Officials Election Commission Working Paper Ministry of Administrative Reform Ministry of Finance Ministry of Home Affairs People’s Consultative...
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