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  • [SEA Talk # 15] The Irony of the Corporate World in Indonesia

[SEA Talk # 15] The Irony of the Corporate World in Indonesia

  • Activity, SEA Talk_eng
  • 6 July 2017, 13.52
  • Oleh: pssat
  • 0

The forms of corruption occurring in the private sector include licensing, procurement, money politics, bribery and stealth. Stealth article is the articles in the Draft Law which is included in the text of the role of private parties. In addition, this kind of article can even appear in the legal products under such as Ministerial Regulation. This was stated by Dr. Rimawan Pradiptyo, lecturer of Economic Department, Faculty of Economics and Business UGM, in the regular discussion of SEA-Talks # 15 (15/06/17).

Beneficiary Ownership for Corruption Prevention, Money Laundering, Corporate Crime and Unfair Business Competition became the main topic of discussion at SEA-Talks this edition. Dr. Rimawan explained that corporation has not been regulated in detail yet. The existence of the Supreme Court Regulation is expected to be able to push the KPK ensnare the main control of the company. “The KPK can actually trap the main controller of the company, which is usually invisible in the structure, but he is the one who gets the ultimate benefit from the company,” Rimawan said.

This lecturer and researcher at Faculty of Economics and Business UGM also confirmed that there are many sectors that have not been regulated clearly. Some of them are private sector national, private multi-national and non-profit institutions. He mentioned that in these sectors, there are dark areas because state institutions can not take action if there is corruption, whether it is the Business Competition Supervision Commission (KPPU) and the Corruption Eradication Commission (KPK).

Rimawan also highlighted the role of the government and the House in relation to the drafting of the Bill. There should be only two parties who can propose a bill, namely the government and the House of Representatives. But according to him, there is a bill which is a proposal from the private sector. Though the business is not supposed to offer a product of the rule of law, either to the ministry or the institution. This condition will lead to uncertainty about who determines the rules and who should accept the rules, namely the private sector.

“This is a phenomenon that occurs in Indonesia, in other countries there can be no association of entrepreneurs or traders but in Indonesia it still exists. While the merchants association would create a cartel, this theory has existed since the era of Adam Smith. Experts are rarely gathered, but when gathered, what would be done would be price manipulation to harm consumers, to exploit the market. The question is why then all the ministries and agencies are most happy to deal with the association,” Rimawan said. GP

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