the causes of corruption
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The causes of corruptionPhenomenon In Indonesia
Prepared by :
Junriana, Raja Abumanshur Matridi, Muhammad Farid, Shahril Budiman, Sri Ambarinah
Public Policy Group Case Study
Effects of corruption ?
I s s u e s
Factors of Corruption ?
Why Corruption?
How to Solve Corruption ?
Conclusion
Public Policy | Group Case Study
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Public Policy | Group Case Study
Hot Tip Why Corruption?
What is Corruption? Corruption (Latin language:
theverb corruptio of corrumpere = Rotten,Damaged,Destabilizing,Distort and Bribing)
Corruption is the abuse of entrusted power for private gain (transparency international)
Corruption appears to take place when it satisfies a certain formula. According to Robert Klitgaard (1998),
Monopoly of power, when combined with discretion and absence of accountability, will result to corruption.
Thus, the formula: C=M+D-A, where C is corruption, M is monopoly, D is discretion and A is accountability
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Public Policy | Group Case Study
F a s t F a c t
Public Sector Integrity Survey
2007 (5.53)2008 (6.84) 2009 (6.50), 2010
(5.42) and 2011(6.31)
• CPI 2007 score (2.3),• 2008 (2.6), 2009
(2.8), 2010 (2.8). 2011 (3.0)• Perceptions of
Corruption In business -picture of public service
Bribery Index 2011:
7.1Score: 0-10,
the higher score,more bribe
Human Development Index
(HDI) by UN, in 2008 (.588), 2009(0.593), 2010 (0.600), 2011 (1.0)
Doing Business (measurementease of doing business in Indonesia)
2012 ranks 129 among 183 countries
INDONESIA
Political and Economic Risk Consultancy
(PERC)The most corruption
country among 16 countries Invest in
Asia Pacific
Factors of Corruption ?
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Public Policy | Group Case Study
1
THE INDIVIDUAL ASPECTS OF ACTORS
• Human greed• Moral of less powerful• Insufficient income• The urgent necessities of
life• Consumptive lifestyle• Lazy or unwilling to work• Religion is not applicable
2
ASPECTS OF THE ORGANIZATION
• Lack of exemplary leadership stance
• The absence of a true culture of the organization
• Proper system of accountability in government agencies lack adequate
• Weaknesses of management control systems
• Management tends to cover up corruption in the organization
3
PLACE INDIVIDUAL AND ORGANIZATIONAL
ASPECTS OF BEING
• The values in the society is conducive to corruption
• Corruption can be caused by the culture of society.
• The public is less aware of the main victims of corruption
• The public is less aware of when he was involved in corruption
• The public is less aware that corruption will be prevented and eradicated if people take active
• Aspects of legislation
According to the Financial and Development Supervisory Agency in the bookentitled "Anti-Corruption Strategy,“
The causes of corruption include:
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1. Local regulations do not refer to the regulations Legislation →
Deregulating the regional rules 2. Income enforcement officers →
Map of Corruption in IndonesiaPublic Policy | Group Case Study Source : Indonesia’s Corruption Eradication Commission
1. Deviation from the target → Audit Planning2. Extortion to taxpayers → Transparency and accountability of the tax system3. Improved data manipulation system
1. Abuse of permitting→ Improved system of authority2. There is no single data base
→ Integrated database3. Abuse of the tax payment
→ Improved system of admission
1. Deviationprocurement procedures
Encouraging e-prorecruitment, →
establishment of the ProcurementServices Unit,
Self-setting price estimates,
whistleblowersystem,
transparency andaccountability system
procurement.
1. Deviations designation
2. embezzlement3. fictitious
→ Improvementssystem budgeting,
strengtheningLegislative control
1. Income onRegional Revenue
and Expenditure Budget:
abuse authority,embezzlement2. reporting not
standard3. allocation
not transparent→ Repair the system
Non Tax receipts
Expenditures Goods and
Services
Social
Assistant / Aid
The Regional charges
Special and Public
Allocation Fund
Tax
receipts
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Destruction of
the Bureaucracy
Increasing Poverty
The lack of clear Future of
Democracy
Demoralization
Sluggish economy
System disruption of Politics &
Government
High CrimeMassive Impact
of Corruption
Effects of corruption ?Public Policy | Group Case Study Source : Anti Corruption Study | Paramadina University
The collapse of the
Rule of Law
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How to Solve Corruption ?Public Policy | Group Case Study
REDUCE CORRUPTION
Build culture of less
corruption
Catalyze public sector
reform
Gain public trust
CatchBig Fish
Socialization, communication, education
Legislation &
Regulation
Study, Audits, Reviews,
examinations, recomendations
Proactive & strong
investigation
Operations with other agencies
Transpa-rency
Create unique KPK culture
Multi-disciplinary team work
Rightresources
Infrastruc-ture & Strong
Investiga-tion
Internal audits
Recruitment Training productivity
Obtain & Utilize budget
effectively
FINANCIALPERSPECTIVE
STA
KE
HO
LD
ER
SP
ER
SP
EC
TIV
EIN
TE
RN
AL
PE
RS
PE
CT
IVE
LE
AR
NIN
G &
GR
OW
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PE
RS
PE
CT
IVE
Complaints, intelligents, & investigation
Collective leadershi
p
Triggering law
enforcement
Supervise & coordinate law enforcement
agencies
Prevention Repression
Public Policy | Group Case Study Source : Indonesia’s Corruption Eradication Commission
Corruption Eradication Strategies
Total solution, systematic, comprehensive and integrated. Includes preventive and repressive efforts as well as public
participation + international cooperation. Executed simultaneously and continuously in the short, medium,
and long term. Short term strategy strategies that are hoped to
produce swift results/effects in corruption eradication. Medium term strategy strategies that systematically
prevent corrupt acts Improvements to administration systems and state governance management
Long term strategy targeted at changing the public’s perception toward corruption and abolish cultural permissiveness towards corruption
Public Policy | Group Case Study
C o n c l u s i o n
CORRUPTION ROBS OUR RIGHTS TO LIVE IN PROSPERITY
Public Policy | Group Case Study
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