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corruption and competition

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corruption and competition

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    1. 1 Corruption and Competition“Collusion and Corruption in Public Procurement” presented by Dr. Benny Pasaribu Indonesian Competition Authority (KPPU RI) Commissioner for the Global Forum on Competition, Paris, 18-19 February 2010

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    3. 3 Recent Development of Indonesian Economy Last month, ASEAN-China FTA just started. Indonesia has to make a great deal of improvement in policy/regulatory reforms towards higher productivity, efficiency, good governance and law enforcement. However, from various survey agencies, Indonesia is still considered among the top rank of for corruption ( Transparency International,etc.).

    4. 4 Corruption Grows faster in Less Competitive Areas Aside from other forms of anticompetitive practices, Government procurement may be one of the most collusive area that brings about bid rigging activities that lead to corruption. Anticompetitive practices leads to accumulation of supernormal profits by which the amount of cash money is surmount available to be given to related authorities, when it is necessary, that can be considered as kick back, bribery, or other names. Needs more in depth studies on the correlations between competition and corruption across sectors.

    5. 5 Corruption in procurement process

    6. 6 Comparison of Corruption and Competitiveness Indices in 2009

    7. 7 Corruption perception data (CPI) and competitiveness data (GCI) 2003-2008

    8. 8 KPPU and the collusion in public procurement KPPU has received 730 complaints in 2009 that consist of 201 reports and 529 written information. The 84% or 169 out of 201 reports is on the violation of Article 22 (bid rigging). Experiences shows cartel/collusion is maintained by guarantee a sub-contract or cooperation with bid committee in adjusting requirements for their favor. KPPU has made various efforts to prevent collusion in public procurement: Publish guideline on the prevention of bid-rigging; Cooperation with the Indonesian Corruption Eradication Commission; Recommend administrative actions against the officers concerned to those with higher position in their organization; Advocacy through dissemination program; and Currently putting another effort into the punishment of administrative sanctions to tender committees or principals. Cooperation among state agencies is a must including with: KPK (Corruption Eradication Commission) National Police Attorney General Office BPK (State Auditor) LKPP ( Government Procurement Authority)

    9. 9 Cooperation with the Corruption Eradication Commission (KPK) Cooperation between the Corruption Eradication Commission (KPK) and the KPPU was agreed on February 6th 2006. The scope of cooperation were involving access on data, information, and coordination related to respective case findings. If there is indication of corruption in any cases handled by KPPU, then KPPU could apprehend the corruption aspect to the KPK, while KPPU continues to focus on collusion aspect and vice versa. Includes joint socialization of the law to stakeholders.

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