Corruption and Poverty

Pakistan is a modern country, as is our country. Even though the majority of Indonesian embrace Islam, it is not defined as a Muslim country in the Constitution. This does not mean religion has been removed from our lives because Pancasila incorporates it in our lives as well as spiritual teachings, moral and ethical grounding in the life of the nation and state. (Muhammad Natsir, Masyumi leader, at a speech in the Pakistan Institute for International Relation, Karachi, 1953)

The speech was quoted by Bung Karno and delivered in a public lecture to academics of the University of Indonesia on May 7, 1953. Bung Karno\'s lecture, entitled "National State and Ideals of Islam," was primarily in response to a letter by Dahlan Ranuwihardjo, chairman of the Association of Islamic Students, who questioned the relationship between Pancasila and Islam in the Unitary State of the Republic of Indonesia.

Understanding and greatness of  the souls of the founding fathers in establishing the nation\'s foundation from the pluralistic nation have unfortunately been undermined by mediocre politicians who seek to profit by exploiting ethnic, religious, racial and intergroup (SARA) sentiment. The corruption of national vision through the proliferation of polarizing issues amid the shallowness of the life history has become a dangerous latent problem when state officials stutter in enlivening and affirming  the philosophy of the nation.

Neglecting priorities

In the global constellation and interdependence, it can hardly be denied that the rise of sectarianism is also closely linked to the interests of transnational economy-politics. The multifaceted interests that infiltrate common local-national issues constitute the common symptom of proxy war with a target to divide the nation. Indonesia has become fertile ground because of the long delays in the settlement of various tragedies that remain shrouded in mystery, intertwined with poverty and inequality.

The commotion in the political constellation by raising the SARA issue, which is continuously maintained and multiplied by mediocre politicians, has overshadowed priorities of the nation. The economic structure, which is fragile and caused severe damage in the 1997-1998 Asian financial crisis, focuses back on the class of the economic elite.

In accordance with the corruption of the concept of nationalism, many new laws and regulations produced by the executive and legislative branches not only widen the gap of vulnerability but are also used to nurture the privilege of a handful of groups, thereby widening the inequality gap. The mimicry phenomenon of the recipients of Bank Indonesia liquidity assistance (BLBI) funds and the renewed strengthening of monopolies and oligopolies constitutes a setback that is serious and difficult to accept. The remarkable post-reform peculiarity shows the failures of political parties to push through political-economic democratization.

Similarly, the establishment of 20 state commissions, 12 quasi-state institutions and 29 councils/institutions at the state commission level have not significantly escorted and represented the principles of democracy and government management, especially transparency, accountability, equality and justice. The big ambition to form democratic infrastructure without the ability to strongly  promote the substance of democracy shows the damaging intersection of diverse interests.

Severe inequality always stems from unfair policy that does not meet the essential needs of the largest portion of the population. A large budget allocation to overcome poverty, for example, would require a new, well-prepared road map that "radically" changes its conventional lines and distribution.

For decades, the distribution of funds for the Community Development Partnership Program  of state-owned enterprises and various types of small business credit has always failed to reach the target, but is not evaluated and totally corrected. The high rate of bad debts, the allocation of which is directed more to non-productive small businesses, the lack of business  incubators and weak risk guarantee schemes are a series of classic issues that cannot be overcome. The business as usual approach in poverty alleviation  continues to "hide" the key problem in the distributing institutions and the target groups.

Marginal groups that are not reached by the aid scheme should be the main targets, which are generally scattered and not consolidated. Accompaniment for the input of science (technology and skills) and management (corporate governance) should be assembled in a single package of policies to reduce poverty.

Corruption-poverty relations

The eradication of corruption and the prosecution of suspects have thus far been limited to individual perpetrators or limited groups, and have not reached corporations or networks in which corruption is systemic and entrenched. The sting operation against a Constitutional Court judge by the Corruption Eradication Commission (KPK) in a bribery case related to the judicial review of Law No. 41/2014 on animal husbandry and animal health and the arrest of a chairman of a political party in 2013 has not had an impact on rent-seeking practices involving beef imports. As a result, for decades consumers and small-time cattle breeders have fallen victim to the practices.

Similar practices occur in the mining, plantation, forestry and marine sectors, which are closely linked to licensing. The widespread co-opting of national and regional assets by several companies would be impossible without the involvement of many parties. Systemic corruption in the strategic sector has consequences in the form of inequality and poverty.

Collusion among  politicians, businesspeople and those in power is repeatedly revealed and has become a general characteristic of the corruption profile in Indonesia. The compounding interests among the three have upset public order, bringing serious impacts that are very broad and terrible,  especially if it is associated with the control of natural resources, which should be used for the benefit of the people.

On the other hand, the performance of the KPK, the police and prosecutors in uncovering corruption cases is limited. The police on average handle 1,300 to 1,400 corruption cases per year, prosecutors 300 cases and the KPKP only 30 to 35 cases per year. There is limited capability and distribution of corruption cases, which is not focused among the three law enforcement agencies.

The strengthening of capacity and the formulation of operational strategies to fight corruption are frequently overshadowed by concerns about the absence of institutions that are free from political interference, such the Constitutional Court, the Supreme Court and the Supreme Audit Agency. Establishing a deterrent effect for corruption is difficult to do when there is no synergy among law enforcement agencies.

An Indonesia Corruption Watch (ICW) report points out that prison sentences for those found guilty of corruption tend to become short from year to year, with imprisonment reaching 2 years and one month on average in the January-June period in 2016 out of the 325 cases (384 defendants). The trend of lighter sentences for perpetrators of corruption can be seen at the different court levels from 2012 to 2016.

It has become clear that the prevention and eradication of the extraordinary crime has a long way to go and requires much effort.  The corruption fight-back by the perpetrators of corruption and their cronies through a variety of ways, such as a plan to revise the KPK Law, has never subsided. However, one thing is certain, a state that fails to eradicate corruption will find it impossible to bring prosperity to its people.

SUWIDI TONO

Coordinator of ”Becoming Indonesia” Forum and  Coordinator of IPB  Alumni for the Anti-Corruption Movement (GAK) among universities