PLN BERSIH: Clean Business! A Civil Society Support for Mainstreaming Corporate Governance in Indonesia
Good Reason • In Indonesia, 2 of 4 business person During the last 12 months, do you think that your think that their company has failed company has failed to win a contract or gain new to win a contract or gain new business in this country because a competitor paid a bribe? business in this country because a competitor paid a bribe. • Both foreign owned companies and NO YES TOTAL 73% 27% domestic owned companies share the Indonesia 53% 47% same risk failed to win a contract or FOREIGN OWNED gain new business in this country 75% 25% More than 20% because a competitor paid a bribe. foreign owned • Both publicly listed companies and 72% 28% Not more than 20% publicly listed companies share the foreign owned same risk failed to win a contract or PUBLICALLY LISTED gain new business in this country 79% 21% Publically listed on because a competitor paid a bribe. stock exchange 72% 28% Not publically listed on stock exchange Source: Bribe Payers Survey, Transparency International Indonesia (2011)
Good Reason • Almost 80 person business person think that their company has an Does your companies has an ethical duty to fight corruption? ethical duty to fight corruption. • Both foreign owned companies and domestic owned companies NO YES TOTAL 21% 79% share the same awareness about an Indonesia 20% 80% ethical duty to fight corruption. FOREIGN OWNED • Both publicly listed companies and 20% 80% More than 20% foreign owned publicly listed companies share the 21% 79% Not more than 20% same awareness about an ethical foreign owned duty to fight corruption. PUBLICALLY LISTED Publically listed on 16% 84% stock exchange 22% 78% Not publically listed on stock exchange Source: Bribe Payers Survey, Transparency International Indonesia (2011)
Good Reason • Almost all of business person think Does your companies that their company have been implemented corporate measure in No Yes addressing anti corruption: code of Have a code of ethics 6% 94% ethics, integrity management system, anticorruption policy, whistle blowing Include corruption prevention in its risk system. management strategy 33% 67% • However, not more than half of Have an anti-corruption policy 35% 65% business person think that their Have measures in place to support potential company prohibit facilitation payment whistle blowers 37% 63% (THE MOST IMPORTANT FACTOR Prohibit facilitation payments 45% 55% ON CORRUPTION INCIDENCE) and only 25% of business person Conduct regular staff training on anti-corruption 75% 25% think that their company regular training on anticorruption. Source: Bribe Payers Survey, Transparency International Indonesia (2011)
Selection Strategic Partner PLN is strategis SOE leading in Does your companies fail win contract when competitor paid bribery? anticorruption issue Sector No Yes Public Works Contracts and Construction 62% 38% PLN is state owned companies Utilities 63% 37% that operate on high risk Telecommunications 65% 35% Heavy Manufacturing 68% 32% business sector. Utilities sector Real Estate, Property 70% 30% Information Technology 73% 27% has become the second highest Consumer Services 74% 26% to be perceived the competition Pharmaceutical and Healthcare 74% 26% Light manufacturing 76% 24% level being abused by bribery. Oil and Gas 80% 20% Transportation and Storage 80% 20% Agriculture 82% 18% Meanwhile, PLN has Having Banking and Finance 85% 15% monopoly right and operating Source: Bribe Payers Survey, Transparency International nationally coverage Indonesia (2011)
PLN BERSIH: General Concept • PLN BERSIH adopt corporate governance concept. • Under Corporate Integrity concept, PLN BERSIH focused on main four Integrity principles, PITA: Participation, Integrity, Transparency, and Accountability. • Implementing PITA expected that – Greater participation, greater collectively trust and ownership. Corporate Participation Transparency Governance – Greater integrity, greater good corporate culture – Greater transparency, greater soundness policy. – Greater accountability, greater more credible system. • Simultaneously, implementing PITA Accountability concept potential to reduce corruption risk.
Decomposing of PITA Concept Participation Integrity Transparency Accountability Tone of the top Compliance to Code Increasing Openness Credible complaint leadership and of Ethic or/and Code Public Information handling mechanism strong internal of Conduct Responsive Public Credible Whistle commitment Setting Vendor Ask for Public Blowing System and Collective action Criteria on Anti Information. Credible Graft Rule among pillars Corruption to Making Public governance: PLN, Monitor External Information Easy to Vendor, and threat Access. Customer Increasing Integrity Regular multi level of procurement stakeholder forum to and services monitor the improvement.
National Initiative Goes To Local Initiative PLN Bersih have been implementing to local unit. Shortly, after PLN Bersih socialized, all pilot project in local unit vibrantly put into action all of programs within PLN Bersih.
Implementation of PLN Bersih (0 mean poor implementation, 3 mean excellent implementation) Distribusi Jawa Barat dan Banten 2.9 Distribusi Lampung 2.7 Distribusi Jakarta Raya dan Tangerang 2.6 Wilayah Bangka Belitung 2.5 Distribusi Jawa Timur 2.5 Distribusi Bali 2.5 Distribusi Jawa Tengah dan Yogyakarta 2.5 Jasa Sertifikasi 2.4 Pusat Pendidikan dan Pelatihan 2.3 Rerata 13 Unit 2.3 Pusat Penelitian dan Pengembangan Ketenagalistrikan 1.9 Pusat Pemeliharaan Ketenagalistrikan 1.8 Wilayah Sumatera utara 1.8 Pembangkitan Jawa Bali 1.7 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6 2.8 3.0
Implementation of PLN categorized by PITA Principles ( 0 mean poor implementation, 3 mean excellent implementation ) Participation Integrity Transparency Accountability Pembangkitan Jawa Bali 0.46 0.68 0.23 0.32 Wilayah Sumatera utara 0.42 0.60 0.37 0.40 Pusat Pemeliharaan Ketenagalistrikan 0.52 0.78 0.20 0.30 Pusat Penelitian dan Pengembangan Ketenagalistrikan 0.50 0.93 0.20 0.27 Rerata 13 Unit 0.51 0.95 0.40 0.45 Pusat Pendidikan dan Pelatihan 0.48 0.80 0.50 0.53 Jasa Sertifikasi 0.33 1.17 0.32 0.60 Distribusi Jawa Tengah dan Yogyakarta 0.47 1.00 0.54 0.45 Distribusi Bali 0.60 1.03 0.42 0.43 Distribusi Jawa Timur 0.60 1.03 0.53 0.37 Wilayah Bangka Belitung 0.56 1.10 0.38 0.50 Distribusi Jakarta Raya dan Tangerang 0.55 1.13 0.40 0.53 Distribusi Lampung 0.60 1.04 0.53 0.50 Distribusi Jawa Barat dan Banten 0.60 1.13 0.60 0.60
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