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The Cattle Bribery Debacle

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31 October 2017 20:02 WIB

Businessmen meat importer Basuki Hariman, after undergo examination in Corruption Eradication Commission, Jakarta, Feb. 1, 2017. TEMPO/Eko Siswono Toyudho

TEMPO.CO, Jakarta - The recent indications of ethics violations by police investigators posted to the Corruption Eradication Commission (KPK) shows that there is something wrong with the way such investigators are recruited.

Instead of maintaining the confidentiality of investigation material, two KPK investigators have gotten rid of important evidence: they destroyed records of the movement of funds in the beef import case involving Sumer Laut Perkasa director Basuki Hariman and Constitutional Court judge Patrialis Akbar.

The two men have been convicted. Basuki was sentenced to seven years in jail and Patrialis to eight years. But according to a statement by Ng Fenny, a member of Basuki's staff who has also been convicted, that is not the end of the story. She revealed that several other officials also took bribes in that case. Notable people mentioned in the records include customs officials, senior figures in the Ministry of Agriculture, and police officers. While reviewing Fenny's testimony, two KPK investigators apparently experienced a conflict of interest as to whether to uphold the law or protect their police colleagues.

The KPK should not hesitate to act against anybody taking bribes from Basuki Hariman. It is time the KPK tightened up the recruitment of investigators. Those suspected of disloyalty should be thrown out of the organization. The KPK must make the recruitment of independent investigators a priority.

The KPK Internal Oversight Directorate should quickly investigate this case. They must not worry that these investigations will adversely affect relations between the KPK and the Indonesian Police (Polri). Admittedly, several cases have resulted in frosty relations between the two bodies, from the two "gecko versus crocodile" episodes to the accusation of ethics violations against KPK Investigation director Brig. Gen. Aris Budiman for accepting an invitation from the House of Representatives without permission from the KPK commissioners.

However, the KPK leadership should not be preoccupied with its own fears: shadows that appear every time there is a conflict between the two bodies. The criminalization of KPK commissioners by the police in the past caused many problems, but covering up a crime is a crime in itself. The KPK leadership should not allow themselves to go down in history as the KPK's weakest commissioners.

Now, the two KPK investigators have been sent back to their units. The police, in turn, should not just stay put: if there are signs of ethical violations, the National Police General Oversight Inspectorate must act. Police Chief General Tito Karnavian should ensure that law enforcement officers in his organization do their work without being obstructed.

At the same time, the government should ensure that the Basuki Hariman bribery case is not repeated. The limits on beef imports through the quota system have led to businessmen battling for quotas by bribing officials.

The beef import policy has provided opportunities for rent-seekers to control the import quotas. In the provision of consumer needs, the government should let the law of supply and demand apply.

At first glance, the endeavor to empower local livestock farmers seems to be noble. By limiting beef imports, the hope is that they become 'masters in their own nation'-obtaining fair prices and not being overwhelmed with imports from neighboring countries. But the fact is through various tactics, livestock farmers are forced to meet the domestic demand for beef although the support they receive is not sufficient.

As a result, local beef is always more expensive than imported meat. Import quotas are applied to bridge the supply deficit. It is this mechanism that has given rise to cartels and collusion: local businessmen who have links to producer countries win tenders by paying bribes to officials. Large overseas producers only want to supply to their business partners because they trust them, thanks to their long history together.

Corruption and bad economic policies form a vicious circle in which neither the beginning nor end is clear. Protectionist policies cloaked in nationalistic slogans foster the rise of greedy businessmen who hide behind state officials of low integrity.

Therefore the government should be transparent in the supply of commodities. Authorities that manage these transactions should work alongside anti-monopoly agencies in producer nations to bring about an import regime that is transparent and accountable. These nations would be certain to welcome this invitation because it would benefit their economies and businesses through the creation of a fair market.

Read the full article in this week's edition of Tempo English Magazine



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