http://www.atimes.com/atimes/Southeast_Asia/IC06Ae01.html

 Mar 6, 2007


Reversing Indonesia's anti-corruption drive 
By Fabio Scarpello 

DENPASAR, Bali - Indonesia's already faltering war against corruption risks 
grinding to a total halt if a new anti-corruption draft law now circulating in 
Parliament and executive offices is finally passed. 

In its present form, the draft legislation boldly calls for the abolition of 
the recently established Corruption Court, which would in turn render the 
already understaffed and underfinanced five-member Corruption Eradication 
Commission (KPK) a toothless tiger. The two independent institutions had been 
widely credited  with taking the fight to Indonesia's endemic culture of 
official graft and corruption, which has resulted in a handful of high-profile 
convictions. 

The Corruption Court started to have impact soon after President Susilo Bambang 
Yudhoyono rose to power in 2004 and declared a high-profile war on graft. 
According to Transparency International, a global corruption watchdog, 
Indonesia consistently ranks among the most corrupt country in the world. That 
has historically diverted substantial resources earmarked for national 
development into politicians' and officials' personal accounts. 

Former president Suharto stands widely accused of spiriting billions of dollars 
from the national coffers over his 32-year tenure. A criminal case against the 
former dictator, involving US$600 million he allegedly took from seven 
charitable foundations, was dropped last May because of his declining health. 
While Yudhoyono's anti-graft drive has netted certain powerful politicians, it 
has notably failed to move against Suharto's cronies and senior military 
officials. 

If the Corruption Court is, as called for under the draft legislation, 
eventually abolished, Yudhoyono's credibility among foreign investors will be 
severely dented. Independent polls have consistently shown that endemic 
corruption and the lack of a level playing field are two of the biggest 
complaints among existing and potential investors. 

Denny Indrayana, representative to Indonesian Court Monitoring, a local 
non-governmental organization tracking judiciary reform, characterizes the 
anti-corruption draft law as "the counterattack of the corruptors", because it 
would act to insulate and protect politicians and state officials from being 
implicated in future corruption cases. 

He notes that the draft legislation is founded on the legal challenges made by 
certain powerful officials and business people who have recently been charged 
and convicted of corruption. The anti-reform ball allegedly started rolling 
when former National Elections Commission head Nazaruddin Sjamsuddin and member 
Mulyana W Kusumah were both imprisoned on corruption charges by the Corruption 
Court. 

Sjamsuddin, a once-respected political scientist, was sentenced to seven years 
in prison in December 2005 on charges he had received kickbacks from an 
insurance firm that won a contract related to the holding of a certain 
election. In their defense, both former officials argued that the Corruption 
Court lacked legal legitimacy and requested a high-level judicial review. 

The Constitutional Court last December in effect agreed with their legal 
argument and ruled that the creation of the Corruption Court under the KPK law 
was unconstitutional. In its controversial decision, the court ruled that the 
Corruption Court had created a "dualism in the judicial system and an absence 
of legal certainty, because suspects tried in two different courts could 
receive different treatment". 

It also ordered that the Corruption Court be disbanded within three years 
unless the House of Representatives enacted a new law mandating its existence. 
The Justice Ministry then appointed Andi Hamzah, a former Tri Sakti University 
professor, to lead a team of experts to draft the enabling legislation. 
However, rather than authorizing the existence of the Corruption Court, as 
seemingly suggested by the Constitutional Court, the new anti-corruption draft 
law has instead paved the way for its demise. 

Article 53 of the relevant law stated that the Corruption Court was established 
expressly to try corruption cases investigated by the KPK. The corruption cases 
handled by the Attorney General's Office, on the other hand, are taken to 
Administrative Court. Data compiled by Indonesia Corruption Watch (ICW), a 
local anti-corruption watchdog, indicate that the Corruption Court has in its 
short existence consistently performed better than the Administrative Court. 

Strong track record
According to ICW, of the 125 corruption cases heard last year at the 
Administrative Court, 40 of the defendants were released without sanction, and 
of those convicted, most received light sentences. That is, 37 people were 
jailed for less than two years, 32 for periods ranging between two and five 
years, and only 16 convicts received jail terms of more than five years. 

In comparison, not one of the suspects charged in the 32 cases  

heard by the Corruption Court escaped indictment. Furthermore, ICW noted that 
the Corruption Court worked faster, handed down heavier sentences and forced 
larger restitution payments. As currently constituted, the Corruption Court has 
three levels and operates under the authority of the Supreme Court chief 
justice. 

At the same time, it has stricter procedures and deadlines for its judges to 
complete the various stages of a trial than other Indonesian courts. Moreover, 
it in some ways transcends the judiciary in that it consists of 21 ad hoc 
non-career judges, some of whom were appointed from non-judicial legal 
backgrounds. 

Corruption monitors contend that those special provisions allowed the 
Corruption Court to act quickly and decisively, avoiding the political 
horse-trading and behind-the-scenes deal-making between defendants and judges 
that many have alleged fundamentally compromise the judiciary's ability to 
adjudicate corruption cases fairly. 

The Corruption Court's critics, however, claim that the non-legalistic 
backgrounds of its judges mean they often lack sufficient understanding and 
technical expertise of the jurisprudence involved with corruption cases. 
Following that argument, Hamzah, the Justice Ministry appointee, has proposed 
that all future corruption cases be handled exclusively by the Administrative 
Court. 

In Article 36 of the draft law, the investigation of corruption cases would in 
the future be done by the police, public prosecutors' offices and KPK 
investigators, but the results of those inquiries would then be handed over to 
the public prosecutor for trial at the Administrative Court. That is, the 
Corruption Court could no longer indict corruption suspects - and hence would 
have no mandate to exist. 

Article 36 is not the only article worrying anti-graft campaigners. For 
instance, Article 13 of the draft legislation states: "Any person who 
intentionally makes a false report of a person committing a criminal act of 
corruption will be punished by a maximum of three years in jail." Such a clause 
clearly would make people reluctant to report corruption cases in fear of being 
charged if the Administrative Court rules the defendant's favor. 

Meanwhile, Article 34 states, "The authority to prosecute a criminal act of 
corruption lapses after 18 years have passed since the actual corruption took 
place." Most analysts believe this article would pave the way for perpetrators 
of various past egregious cases of corruption, including the massive graft that 
occurred under Suharto's New Order regime, to retain alleged billions of 
dollars' worth of ill-gotten gains. 

Other perceived weaknesses in the draft legislation have been highlighted by 
Romli Atmasasmita, a well-known legal expert from Padjadjaran University. He 
notes that the draft law conspicuously lacks articles aimed at preventing 
corruption, as well as appropriate measures to force people proved guilty of 
corruption actually to return their ill-gotten assets. He also notes it does 
not have provisions on international cooperation in fighting corruption. 

Others note that the draft legislation has its positive points. 

For instance, Article 8 says corrupt individuals in private institutions, such 
as hospitals and universities, will no longer be immune from investigation by 
law-enforcement officials. Currently, such individuals cannot be indicted. 
Article 21, meanwhile, states that it would no longer be necessary to obtain 
permission from the president before investigating or prosecuting politicians 
and public officials. And even more broadly, it significantly widens the 
definition of corruption to include the "misuse of authority" and is no longer 
limited to stealing from the state coffers or accepting bribes. 

Still, the draft law remains highly controversial and all eyes are now on 
President Yudhoyono, who has the final authority on whether to send the 
legislation to the House of Representatives for a vote. Leading figures of the 
two main parties in the House - Golkar and the PDI-Perjuangan - have already 
hinted their support for the proposal. Hamzah, for his part, believes that 
Yudhoyono will send the draft legislation down by May. 

In its so-called Barometer of Global Corruption 2006, Transparency 
International singled out Indonesia's House of Representatives as the most 
corrupt institution in the country. ICW is preparing its own rear-guard action 
and has stated that it will present its own counter-draft corruption law in the 
coming weeks. Meanwhile, Indonesia's once-bold anti-corruption drive hangs 
precariously in the balance. 

Fabio Scarpello is AdnKronos International's Southeast Asia bureau chief. 

(Copyright 2007 Asia Times Online Ltd. All rights reserved. Please contact us 
about sales, syndication and republishing.) 

[Non-text portions of this message have been removed]



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