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

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