Corruption Prevention International Best Practices. Stephen Leach Advisor Australia Indonesia Partnership for Justice November 16, 2016

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1 Corruption Prevention International Best Practices Stephen Leach Advisor Australia Indonesia Partnership for Justice November 16, 2016

2 Corruption A Global Problem Not One Single Country, Anywhere, is Corruption Free 68% of Countries Across the Globe have a Serious Corruption Problem 50% of G20 Countries have a Serious Corruption Problem Source: Transparency International

3 World Bank Data World Bank s Corruption Blacklist #1 Canada (117/600) #2 United States (46/600) #3 Indonesia (43/600)

4 2016 is the Year of Anti-Corruption Anti-Corruption Summit: London, May 12, 2016 Anti-bribery Management System: ISO October 15, 2016 Anti-Corruption Conference: Jakarta, November 16-17, 2016

5 Anti-Corruption Summit London 2016 International Anti-Corruption Coordination Center (IACCC) Established by UK and Hosted in London by April 2017 Australia, Canada, France, Italy, South Korea, Singapore (and others) Pledged to Participate International Coordination and Support to Enforcement Agencies

6 ISO Anti-bribery Management System Standard Designed to Establish, Implement, Maintain, and Improve Anti-bribery Compliance Program Series of Measures and Controls Based on Global Anti-corruption Good Practice

7 World Bank Data World Bank s Ease of Doing Business #91 Indonesia (#106 in 2016) National Single Window Improved Customs Services Single Form for Company Registration and Licensing (Jakarta) Digitized Records Making it Easier to Register Land

8 World Bank Data World Bank s Ease of Doing Business 2017 Rankings #91 Indonesia Indonesia in Global Top Ten Improving Ease of Doing Business Indonesia s Goal is to be Ranked #40

9 Ease of Doing Business Rankings Why is it Important for Indonesia? Stimulates Evidence Based Policy Debates Helps Identify Challenges, Good Practices, Lessons Learned Sets a Specific, Measurable, Achievable, Realistic, and Timely Goal

10 Engaging the Private Sector Why Engage the Private Sector? Accounts for 90% of Job Growth Effective Business Regulation Reduces Corruption by Ensuring Fair and Transparent Access to a Competitive Market Public Procurement Accounts for 10-25% of GDP and Remains a Significant Area for Corruption Across the Globe

11 Engaging the Private Sector Why Engage the Private Sector? Indonesia is Implementing a Major Infrastructure Spending Program High Risk for Supply-Side Corruption Corruption Prevention is the Best Strategy

12 Engaging the Private Sector Collaborate with the Private Sector Using Internationally Recognized Best Practices ISO International Anti-Corruption Coordination Center (IACCC) Effective Governance Structure

13 International Best Practices ISO Standard if Flexible Needs to be Adapted to the Indonesian Context Start with Indonesian State Owned Enterprises

14 International Best Practices International Anti-Corruption Coordination Center (IACCC) Designed to Increase International Cooperation Expected to Provide Additional Anti- Corruption Capacity Expected to Begin Operation in April, 2017

15 International Best Practices National Advisory Committee Instrument of Good Governance Fair, Transparent Method of Engaging Stakeholders in Preventing Corruption Results in Evidence Based Actionable Policy Options

16 International Best Practices National Advisory Committee Wide Cross-Section of Stakeholders Seeking Balance of Interests and Views Representatives of Government Departments Participating as Observers

17 International Best Practices National Advisory Committee Wide Cross-Section of Stakeholders Seeking Balance of Interests and Views Representatives of Government Departments Participating as Observers

18 International Best Practices National Advisory Committee Clear Terms of Reference Composition Structure and Terms Specific Mandate

19 Terms of Reference National Advisory Committee Assisting the KPK Chairperson and Members in Maintaining and Enhancing Global Reputation of Excellence Seeking Recommendations on Accessibility, Transparency, and Fairness Practical Rules and Procedures Reflective of Commercial Reality

20 Structure and Term National Advisory Committee Invitation Only Based on Expertise Voluntary 5-year Renewable Terms Select 1 Member as Committee Chair Chair Appoints 2 Vice-Chairs Reflecting Committee Diversity Responsible for Own Expenses

21 Structure National Advisory Committee Advisory Committee Strikes Subcommittees for Specific Issues Committee Meets At Least Once Per Year Advisory Committee Chair Sets Agenda and Schedule with Input of KPK Chairperson

22 Mandate National Advisory Committee Advisory Committee Shall Not Discuss Merits of Individual Cases Subject Matters Should be of General Interest to the KPK and its Stakeholders Recommendations through Annual Report KPK Responds in Timely, Transparent, Constructive Manner

23 First Steps National Advisory Committee Obtain Buy-in from Stakeholders Set Out Objectives and Aspirations Set Out Areas of Focus