August 31, 2010
ANALYSIS
JAKARTA -- Indonesia’s fight against corruption has taken a  worrying turn in recent months, raising doubts about President Susilo  Bambang Yudhoyono’s commitment to eradicate graft in one of Asia’s most  corrupt nations.    
Investors pay close attention to reform and the fight  against graft for signs of progress or back-sliding. Endemic corruption  is one reason why US and European businesses have shunned Southeast  Asia’s biggest economy in recent years, although poor infrastructure,  red tape and legal uncertainty are also factors.
But some Indonesians fear Yudhoyono is "going soft" on such  crimes after he pardoned a former local government official who had been  imprisoned for embezzling state funds.
Several former central bank officials who had been imprisoned for  their role in a corruption case also had their sentences reduced,  including the father-in-law of Yudhoyono’s eldest son.
The pardon and remissions were among hundreds that traditionally  take place on Independence Day, but the inclusion this year of prisoners  who had been involved in major corruption cases prompted a volley of  angry letters to the local press.
"This policy once again adds to a long list of examples of the  inconsistent attitude of the Indonesian government on corruption  verdicts," said Risza Fransiscus in a letter to the Jakarta Post. "This is a bad precedent and really embarrassing."
Indonesia has made modest progress: its standing in Transparency  International’s corruption perception index has risen from a score of  2.0 in 2004 to 2.8 in 2009, where a score of zero is the most corrupt  and 10 is the cleanest.
But anti-graft officers have their work cut out. Newspapers are  so awash with stories of corruption that readers are in danger of being  no longer shocked by the scale of the problem.
"The law enforcers are like hunters in a zoo: corruption is so  widespread, they can take a shot and easily catch something," said Febri  Hendri, a researcher at Indonesia Corruption Watch.
Ask Indonesians whether they sat a driving test and they may well admit to paying a bribe to get a driving licence.
Need a passport? There are always lots of touts at the  immigration office who are willing to ensure your application makes its  way to the top of the pile quickly in return for a "fee."
Traffic police are notorious for stopping motorists and drivers  under the pretense of some minor traffic offense. The easiest way to  escape is to pay a bribe of about 50,000 rupiah ($5).
At the other end of the spectrum, a widely reported scandal  involved a junior tax officer who was suspected of taking bribes from  corporate clients for "adjusting" their tax claims.
Mixed signals
The lenient treatment of offenders is a red flag for foreigners  and Indonesians, who are already concerned about attacks on reformers  and officials at the powerful anti-graft commission by those  businessmen, politicians, and law enforcement officials who have most to  lose from any clean-up.
Critics say Yudhoyono has been too slow to defend officials at  the forefront of the anti-graft campaign, sending mixed signals to the  corrupt who see no reason to change their ways.
Former Finance Minister Sri Mulyani Indrawati, a top reformer who  overhauled the corrupt tax and customs deparments, eventually quit  after months of personal attacks.
The anti-corruption commission, known here by its Indonesian  acronym KPK, also faced attack. Its chairman, Antasari Azhar, was  detained in May 2009 and found guilty of ordering the murder of a  businessman in a bizarre love triangle. He has denied the charges and is  appealing the court’s decision.
Two deputy chairmen at the KPK were arrested on corruption  charges in October. They were found to have been framed by law  enforcement officials and businessmen who wanted to undermine the  agency. Both cases slowed down the KPK’s work for several months last  year.
The agency has been leaderless for months, but a new chairman is expected to be selected shortly.
"A very strong leader is needed for the KPK because the  counter-attacks from those who are not happy to see corruption  eradicated are very strong and getting stronger," said Chandra M.  Hamzah, one of the two KPK deputies who was framed and freed.
"There will be intervention, from all quarters. If you don’t have  the fortitude to endure that, there will be problems. Those  counter-attacks are becoming stronger and more frequent and are taking a  wider range of forms, ranging from the subtle to the not so subtle." --  Reuters
 
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