Managing Conflict of Interest - Organisation for Economic Co ...

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Opening AddressH. E. Susilo Bambang YudhoyonoPresident of the Republic of IndonesiaBismillahirrahmanirrahiim, Excellencies, distinguished guests,ladies and gentlemen: It is a pleasure for me to welcome you allto Jakarta, especially our guests from overseas. I am so pleased tosee many international experts and representatives of countriesin the region together with Indonesian experts and stakeholdersgathered here to discuss the issue of conflict of interest. It is aconcept that I believe every one of us knows well but most probablylacks knowledge of how to implement it. Conflict of interestis a subject that is entirely relevant to our common efforts to fightcorruption.Since my first day in office, anti-corruption has been at the topof my agenda. I have long regarded corruption as public enemynumber one. That is why the first thing I did as President was toenter into political contracts of integrity with all members of myCabinet on anti-corruption. We are now pursuing what is said tobe the most aggressive anti-corruption campaign in the history ofIndonesia. It is in that very context that I welcome and highly valueyour deliberations today. And I commend the organizers for takingthis constructive initiative. The discussions of conflict of interestbegin with our definition and understanding of the management ofpublic and private assets and revenues.The need to differentiate between public assets and goods,on the one hand, and private interests, on the other, did not reallyoccupy governments until the late 19th century. The notion of separatingpublic authorities and private interests may have been recognizedin the “Rechtsstaat” concept developed in central Europeas well as in concepts defined in Napoleonic administrative solutions.These concepts still have a strong impact on the judicialand administrative processes in many countries, including Indonesia.The separation between public and private interests is clearlyapplied to protect public assets from being misused or embezzled.But it also provides a guarantee for fair and impartial public decision-making,which is a cornerstone of a democratic state and goodgovernance.ADB/OECD Anti-Corruption Initiative for Asia and the Pacific
Keynote Addresses xxiI, therefore, am convinced that effective management of conflictof interest is not only a matter of protecting public assets orupholding the rule of law, but also very much a precondition for astate—or indeed a government—to enjoy the trust and confidenceof its citizens.The Organisation for Economic Co-operation and Development(OECD) has stated that a conflict of interest arises “when apublic official has private-capacity interests which could improperlyinfluence the performance of his or her official duties and responsibilities.”With this definition, a situation implying conflict of interestcan possibly emerge at the earliest stage, even before possibleinappropriate behavior has taken place. This is extremely important,as it requires public officials to avoid putting themselves in adangerous position or situation where conflict of interest can beeasily suspected.It is no secret that Indonesia’s history includes a long periodwhere conflicts of interest were neglected, and public duties,authorities, and assets were systematically used for private gain.These practices, applied during more than 30 years, have left astrong legacy, which we now must rectify. At this stage, much of thislegacy not only remains but is still perceived by many in Indonesiaas the norm. In Indonesia, conflict of interest is seen more as a conflictto be avoided by public officials but not necessarily as corruptpractice. I am, however, pleased that provisions for avoiding conflictof interest as an ethical norm are already present in many Indonesianlaws such as the Anti-Corruption Law, the Law on KPK, the CivilService Law, the Public Prosecution Act, the Law on the SupremeCourt, the Capital Market Law, and others.There is yet a definition of the concept common to all existinglaws. I also admit that there is a lack of enforcement mechanisms inthe laws, partly explained by the vague definitions. This, I believe,is the challenge. I do strongly believe that the time is therefore ripeto both clarify the concept of conflict of interest in Indonesia andimprove our methods and mechanisms for protecting our systemagainst conflict of interest. The concept must be defined in relevantlegislation in a coherent way, and feasible protection and enforcementmechanisms must be designed to clarify borderlines andaccountabilities. The concept must be developed through a processinvolving government agencies, many stakeholders, and eventuallythe Parliament. This is truly a difficult and challenging process,ADB/OECD Anti-Corruption Initiative for Asia and the Pacific
Page 4 and 5: Publications of the ADB/OECD Anti-C
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Page 9 and 10: ForewordThe Asian Development Bank
Page 11 and 12: AcknowledgmentsThe Asian Developmen
Page 13 and 14: AbbreviationsACFEADBAPSCEOCFOCOICRP
Page 15 and 16: Executive SummaryThere is growing c
Page 17 and 18: Executive Summary xvThe Organisatio
Page 19 and 20: Executive Summary xviiThe People’
Page 21: Keynote AddressesADB/OECD Anti-Corr
Page 25 and 26: Keynote Addresses xxiiiConvention A
Page 27 and 28: Welcome RemarksTaufiequrachman Ruki
Page 29 and 30: Welcome RemarksArjun ThapanDirector
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Page 33 and 34: Remarks at the Opening DinnerH. E.
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Page 39 and 40: Closing RemarksHidayat Nur WahidCha
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Page 45 and 46: Chapter 1Defining conflict ofintere
Page 47 and 48: The United Nations Convention Again
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Asset declaration in the Philippine
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Conflict of interest in Indonesia:
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Section 2:Implementation andEnforce
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Private gain from public loss:How T
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Section 3:Prevention andEnforcement
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Codes of conduct and mechanisms top
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Chapter 5Codes of conduct in thepri
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Good corporate governance: Essentia
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Codes of Conduct in the Private Sec
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Compliance enforcement in a multina
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Living business ethics: Good govern
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Appendix 1: Seminar agendaADB/OECD
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Appendix 185The experience of asset
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Appendix 187Detecting conflict of i
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Appendix 2: List of participantsMem
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Appendix 191Asad Ali SHAHPartner, D
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Appendix 193WaluyoDeputy of Prevent
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Appendix 195PALAUSecilil ELDEBECHEL
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Appendix 197Sandie HITOJOSenior Con
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Appendix 199TRANSPARENCY INTERNATIO
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Appendix 201Arie SISWANTOAssistant
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Secretariat 203ADB/OECD Anti-Corrup
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