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Rent Seekers in the Lobster Case

Translator

Tempo.co

Editor

Laila Afifa

2 December 2020 23:54 WIB

TEMPO.CO, Jakarta - THE bribes related to the export of lobster larvae allegedly received by Minister of Maritime Affairs and Fisheries Edhy Prabowo are a real example of the wrongdoing resulting from the mismanagement of the Indonesian economy.

Officials like Edhy intentionally produce multilayered regulations so that businesses have no choice but to pay rent to bureaucrats and officials. Without bribes, there is no hope that the permits, quoters, and licenses needed by businesses will be issued.

The type of corruption allegedly committed by Edhy Prabowo at the ministry of maritime affairs and fisheries also occurs in many institutions and ministries. The practice of rent-seeking has been an integral part of the mentality of the Indonesian bureaucracy since the New Order regime. As long as there is a mechanism for permits, quotas, tariffs and selections in force, there is always an opportunity for bribery. In general, many officials understand this, but they turn a blind eye because they secretly enjoy the benefits. The crooked mentality of senior state officials only comes to light after law enforcement authorities act, as in the case involving Edhy.

We hope that the Corruption Eradication Commission (KPK) does not stop with the arrest of Minister Edhy, two of his special staff, and four other suspects. It is strongly suspected that billions of rupiah paid by lobster larvae exporters reached as far as senior party figures. The statement by Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, who asked the KPK not to go too far in investigating the case, must be condemned as the arrogance of a state official before law enforcers. It is regrettable that not long after Edhy's detention, President Joko Widodo appointed Luhut as ad interim maritime affairs minister.

The KPK must not hesitate to investigate the involvement of Aero Citra Kargo, the company appointed by Minister Edhy's special staff as the only shipping firm allowed to export the larvae. Everybody who took money from the company owned by a number of politicians must also be detained. The owners of the lobster larva export companies who lined up to pay bribes to Aero must also be detained.

When Minister Edhy signed Maritime Affairs and Fisheries Ministerial Regulation No. 12/2020 on May 5, the stench of corruption was already apparent. We remember that less than a month after the regulation was published, a number of companies had already registered as exporters -- some of them are old companies that had been punished for smuggling lobster larvae in the past. There were also companies owned by a politician close to Minister Edhy.

The environmental damage caused by this policy is not insignificant. These lobster larvae are germ plasma that only exists in the wild. Since May, almost 50 million lobster larvae have disappeared from our seas to be flown to Vietnam and other nations that enjoy huge profits. Fishermen are only paid Rp5,000-15,000 per lobster, while exporters sell them for up to Rp65,000. This export policy has to be stopped because it provides no added value for fishermen or domestic fisheries companies.

Unfortunately, a number of danger signs were simply ignored by the maritime affairs ministry internal oversight system despite the fact that the Inspector-General of Maritime Affairs -- with the authority to carry out internal control -- is Muhammad Yusuf, former head of the Financial Transaction Reports and Analysis Center. A number of experts are also advisers to the maritime affairs minister, including legal expert Hikmahanto Juwana and former maritime diplomat Hasyim Djalal. Former deputy head of the National Police Criminal Detectives Division, Insp Gen. Antam Novambar, who was appointed as maritime affairs secretary-general did not play much of a role in trying to prevent this corruption -- assuming he did not simply close his eyes to these crooked practices.

The detention of Minister Edhy Prabowo must provide momentum to put right the two problems with the management of the Indonesian economy. As well as eradicating the practice of rent-seeking facilitated by a number of ministries, President Joko Widodo must abandon the stone-age economic model that simply exploits natural resources. This case should open our eyes to the fact that effective law enforcement is an absolute requirement for fair economic development.

We are grateful that there are KPK investigators who worked hard to uncover this case despite the fact that the anti-graft agency has been wrecked after the law regulating it was revised by the House of Representatives and the government last year. The uncovering of the alleged corruption through a bugging operation by investigators must be seen as a brave initiative to fight corruption. The initial statement that is the arrest of Edhy shows the commitment of the Jokowi administration to eradicate corruption must be treated with skepticism. Until this investigation uncovers the alleged corruption down to its roots without intervention, this statement must be seen as a biased claim.

Read the Complete Story in Tempo English Magazine



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