Negative News for Business Regulator, Positive News for Corruption Eradication

KPK (The Corruption Eradication Commission) never stops to make the breaking news in Indonesia. A commissioner at the Business Competition Supervisory Commission (KPPU) had been caught at a hotel in Jakarta after a bribe case had identified by KPK investigators. This is certainly a bad news for KPPU as a business regulator in Indonesia. Regulator must have strong credibility to ensure the fairness of competition. Regulations are made to ensure that social welfare is fulfilled optimally. Unfortunately, this negative news should happen because, in my opinion, KPPU is a "clean " institution relatively to the other government institutions in Indonesia. This news potentially can be a source of "credibility problem" to the business climate in Indonesia.

However, if we see from another point of view, this case will enhance the business climate itself. Why? It could be a positive example of the KPK efforts to eradicate the corruption. Fighting the corruption should enhance the performance of institutions in Indonesia. The better institution the better public policy management and the better investment climate in Indonesia. In my argument, in the short term, there is an increasing shock to the public apparatus to adopt "new culture" without corruption. As a technology, the culture shifting should need time. How long is it? It depends on the created supporting policies to avoid the potential corruption itself. I argue that the corruption arises in Indonesia's apparatus lifestyle because the potential cost of corruption is less than the "huge" personal benefit to corrupt.

In addition, some economic agents argued that the corruption eradication efforts had delayed the economic activities. It is caused by the "very prudential" actions of government apparatus. This is in line with the theory of optimal corruption. I think the shifting process to the new era of Indonesia should have a "cost". Therefore, we need the time path of the strategy to fight the corruption, to smooth the process of corruption eradication.

Thanks for blogger...

Here is my first publication in this blog. Thanks for the blogger helping me to express my opinion about Indonesia. Actually, I want to give another insight about economic and political conditions in Indonesia. Hopefully, the readers should have true understanding about Indonesia. Again, thanks for blogger....