sistem integritas nasional

PREVENTION IS A BIG UNDERTAKING

HERU PRASETYO CHAIRMAN – IBL BOARD OF PATRONS

INTEGRITY. CAPACITY. SUSTAINABILITY

THE MOMENTUM BUILDERS

DECEMBER 1998 DECEMBER 2003


INDONESIA RESPONDED


FROM SEPTEMBER 1999

• 65 CORPORATIONS (NATIONAL AND MULTINATIONALS)

• FOCUS ON BUSINESS ETHICS, • EMPOWERING SMALL AND MEDIUM

ENTERPRISES, • ADVOCATING CORPORATE CITIZENSHIP

ACTING ON THE MOMENTUM


NATIONAL STRATEGY CREATED


TOOLS AND APPROACH IDENTIFIED


ACTION PLAN CONTINUED


PREVENTION (ALWAYS) A PRIORITY


.. BUT OBSTACLES REMAIN


SISTEM INTEGRITAS NASIONAL

NATIONAL INTEGRITY SYSTEM, CORPORATION LIGHT


• IBL International CSR Conference in 2006, 2008, 2010, 2013 (With Business Ethics and Integrity Focus)

• Business Integrity Forum in 2013, 2014, 2015, 2016

• Public Service Announcement (PSA)

• 57 Radio and 7 TV talk shows on Business Ethics

MEANWHILE IBL SOLDIERS ONWARD


Business Integrity Forum, February 2013. Left to right: Mr. Erry R Hardjapamekas (former KPK), Mr. Hayie Muhammad (Indonesia Procurement Watch), Mr. Nur Pamudji (PLN), Mr. Josef Winter (Siemens), and Mr. Adnan Pandu Pradja (KPK)

Mr. Charles ‘Chuck’ Taylor (Chevron) opening BIF on December 2014

Launching Guidebook on Anti-corruption Compliance for Mid-sized Companies in Oil & Gas Sector, August 2015.

MULTISTAKEHOLDERS BIF


• Workshops on ‘Managing Ethical Dilemmas in Business’ since 2000, through 50 workshops building the capacity of 4000 business leaders and staffs of many companies.

• Workshops on ‘Building Code of Conduct for SMEs’, built the capacity of 400 SMEs in 7 provinces through 11 workshops

BUILDING CAPACITY FROM THE GROUND UP


MAKING REFERENCES AVAILABLE


DOING A REGULAR CHECK-UP ON THE STATE OF INTEGRITY

“BUSINESS WITH INTEGRITY MEANS THE WHOLE

ORGANIZATION IS HAVING GOOD INTENTION, WELL

PRINCIPLED, SOLID AND MAINTAIN STRUCTURE AND

SYSTEMS TO ASSURE CONSISTENCY”


24.4% 23.8% 20.9%

13.4% 9.9% 7.6%

Permit andLicense

CommunityDevelopment and

SocialResponsibility

(CSR)

Procurement andLogistics

Finance andTaxation

Sales andMarketing

Human Resource/ Workforce

Nowadays, in your opinion which critical areas of business are prone to unethical practices?

CONCERNS ON INTERFACE REMAIN


7.0%

7.0%

8.0%

10.1%

12.1%

12.1%

14.1%

14.1%

15.1%

Others

E-hub (market place) for business integrity initiatives

Online training on business integrity areas

Engage schools and universities to provide extra-curricularlessons on business integrity

Dialogue with relevant business stakeholders tostrengthen business integrity

Whistle blowing mechanism

Help Desk on doing business with integrity

Awareness and advocacy campaign to relevant businessstakeholders

Engage media to spread business integrity spirit andprinciple to wider stakeholders

What more can we do collectively?

ACTION FOR SOLUTIONS SOUGHT


FORUM INPUT ON: CHALLENGES ON PRACTICING BUSINESS INTEGRITY Licenses and permits Licenses and permits remains an area with high frustration. If outsourced to an agent, chances are high there are bribes. If not, it will take forever.

In applying permits, some improvement with PTSP happened but there are still requests for contribution funds in many cases, to speed up process. Lamanya proses, birokrasi yang berbelit-belit, jumlah license dan permit yang seharusnya bisa disimply.

One door administration to get permit through BKPM seems simplifying the process, but actually still need to go the related authority that handles such permit to get this done promptly with extra cost. Sidang Komisi Amdal di suatu daerah PERNAH diancam untuk tidak dibuka, sebelum menyerahkan secara kontan sejumlah uang.

Agents are often used to do the bribing, hiding the unwarranted transaction Dalam pengurusan perijinan, pemerintah menunjuk beberapa consultant dimana kita harus bekerja sama dengan salah satu konsultan yang ditunjuk yang nota bene harganya sangat mahal.


Finance and Tax

When we pursue Tax Amnesty, which one we choose to seek help (with fee)? Tax Officer or Tax Consultant?

Corporate Social Responsibility

CSR is abused as a reason to "buy" favor to business while local governments see CSR as alternative funding for development. Is it ethical or just smart? CSR dijadikan alasan oleh banyak Pemda sebagai dana urunan untuk pembangunan.

Local authorities sometimes colluded with NGOs to gain unauthorized money from the company, especially at the beginning of the construction of new business in the area. Managing the expectations of local community for company to help local development. Many personal/group interest only benefit a few and low impact.

Procurement and Logistic

In government procurement processes, sometimes the Panitia Lelang make pre-arranged scenarios in favour to firms who is willing to share its profit informally ( often at an agreed amount ). LKPP and Inspectorate are constrained by existing regulations and weak co-ordination amongst ministries/government agencies.


INPUT ON BEST PRACTICES ON STRENGTHENING BUSINESS INTEGRITY • Promote transparency by having technology based business process, whistle blow

mechanism and constant education and clear sanction.

• License and permit: menyerahkan ke agent namun dibentengi dengan ada klausa terkait anti bribery and corruption dan ada statement to no corruption before they engaging with us.

• Saya punya pengalaman dimana vendor kami "dididik" scara tidak langsung untuk jadi Etis melalui MoU yang dibuat di awal.

• Memperkuat peran dan tanggung jawab Asosiasi Profesi.


INPUT: IDEAS TO PROMOTE BUSINESS INTEGRITY • Use technology to provide faster, lower cost business processes that at the same time

promotes transparency.

• Develop a Code of Conduct which emphasizes on business integrity to be imposed on every member of the company (at all level) and conduct regular sessions to enforce it.

• Educate vendor. Not only educate but also help vendors to comply by measures.

• Educate more young people (start up businesses) to avoid unethical conduct in the first place.

• Award mechanism for online businesses that include whistle blowing mechanism. Ask them to be a "watch dog" for unethical practices.Educate the online businesses to be ethical in the first place. Not just selling but also become advocator of integrity.

• Build Collective Action and increase capacity CSR Forum di daerah dengan private sectors sebagai leading sectors, dapat membantu menumbuhkan implementasi program CSR yg berintegritas. Sekaligus bisa menjadi aliansi (buffer) terhadap praktik unethical integrity.

• Establish and promote a Business Ethics Index to incentivize businesses to appreciate it is good for business when ethics are better.


MAINTAINING THE MOMENTUM, NEXT STEP

Indonesia Integrity Initiatives

Portal

Action Forum - I

Business Integrity Forum

Business Integrity Forum

Action Forum - I Action

Forum - I Action Forum - I Action

Forum - I

Action Forum - I Action

Forum - I Action Forum - I Action

Forum - I Action Forum - I

INDONESIA INTEGRITY INITIATIVES PORTAL


Concerns

Policy

Operating Procedures

Implementation

Feedback

Actors

Other References

Other References

Indonesia Integrity Initiatives

Portal

INTEGRITY . CAPACITY . SUSTAINABILITY

THANK YOU

www.ibl.or.id

www.indonesiaintegrityinitiative.org

sistem integritas nasional

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