Transcript Country Report - SAI Indonesia

THE AUDIT BOARD OF INDONESIA
THE RESEARCH
1. Respondents
157 persons from 16 agencies : 8 government
agencies, National Police Department, Attorney
General Office, Commission for Corruption
Eradication, Financial Intelligent Unit, 1 state-owned
bank, 3 state owned companies
1. Time
3 weeks (March to April 2013) : distribution,
collection, process
Results – Findings
Corruption
1. Level of corruption
a. Respondents thought Corruption was intolerable,
very serious, pervasive, and increasingly occurred in
recent years;
b. Global Integrity Index and Corruption Perception
Index fairly reflected the reality of Corruption in
Indonesia ;
c. Corruptions were mostly predictable and It was most
likely to happen within public entities.
Results – Findings
Corruption
2. Types of Corruption
a. The most types of corruption based on prevalence
were Grand corruption, petty corruption, and
corruption at enterprise level.;
b. The most common types of corruption were Abuse of
power and Bribery.
c. The highest probability were Petty Corruption and
Grand Corruption while the parties most likely
involved were employees, supervisors, and high-level
management;
Results – Findings
Corruption
3. Sectors vulnerable to Corruption
a. Law enforcement agencies and tax
collections were considered the most
vulnerable sectors;
b.At government level, areas possessing
greatest possibility to occur were
procurement contracts and revenue
(tax) collection.
Results – Findings
Corruption
4. The use of corruption’s money
The monies gained from corruption
were mostly used to purchase assets.
Results – Findings
Corruption
5. Causes of Corruption
a. The causes of Corruptions were
the weak and lack of anticorruption legal system;
b. The main cause of Grand
Corruption was Patronage-Client
System,.
Results – Findings
Corruption
5. Causes of Corruption (cont’d)
c.
d.
Weak accounting practices, including
lack of timely financial management;
Corruption during budget formulation
is primarily grand or political corruption
and is influenced by the distribution of
budgetary powers between the executive
and the legislature.
Results – Findings
Corruption
5. Causes of Corruption (contd)
e. Unchecked and excessive
executive discretion in the budget
process;
f. Public Financial Management
System weakness during budget
formulation.
Results – Findings
Corruption
6. Anti corruption efforts
a. Steps taken by the government were
considered weak;
b. The role of whistle blower was
important in reporting corruption;
c. It was effective to lodge complaints of
corruption.
Results – Findings
Corruption
7. Consequences of Corruption
Corruption was considered to give
serious impact to government’s
budget as well as society.
Results – Findings
Money Laundering
1. The degree of seriousness of
money laundering in Indonesia
a. Currently money laundering is in its
serious condition.
b. The prevalence rate of money
laundering tends to increase and getting
more sophisticated over the years.
Results – Findings
Money Laundering
2. The main pattern of money
laundering in Indonesia
a. Money laundering occurs both in
public and private sectors.
b. The most vulnerable sector for
money laundering is real estate.
Results – Findings
Money Laundering
2. The main pattern of money
laundering in Indonesia (contd)
c. The wealth obtained from corruption is the
main source for money laundering, with
approximate amount of more than USD 50M.
d. The most common method used for money
laundering is by using real estate, business
and cash transactions.
Results – Findings
Money Laundering
3. Causes of money laundering
The main factors causing money
laundering in Indonesia are Insufficient
supervision/control system and the
insufficient legal system for anti money
laundering.
Results – Findings
Money Laundering
4. Negative consequences of money
laundering
a. Increase the number of crime and corruption
b. Reduce the amount of government’s tax
revenue and weaken the government’s control
over the economy.
c. Very seriously impact economic and social
condition, national security, Indonesia’s
international reputation, and economic
reform.
Thank You..