Soldiers, parties and bureaucrats: Illicit fund-raising in contemporary Indonesia

South East Asia Research

Volumn 16, Issue 2, 2008, Pages 225-254

  Mietzner, Marcus ^a  

^a AUSTRALIAN NATIONAL UNIVERSITY   (Australia)

Author keywords

Bureaucracy; Corruption; Democracy; Indonesia; Military; Parties

Indexed keywords

AUTONOMY; BUREAUCRACY; CORRUPTION; DEMOCRACY; INSTITUTIONAL FRAMEWORK; MILITARY INTERVENTION; PARTY POLITICS; POLITICAL ECONOMY; STATE BUILDING;

ASIA; EURASIA; INDONESIA; SOUTHEAST ASIA;

EID: 50949089639     PISSN: 0967828X     EISSN: None     Source Type: Journal    
DOI: 10.5367/000000008785260446     Document Type: Article

References (61)

1. Jörn Brömmelhörster and Wolf-Christian Paes (2003), 'Soldiers in business: an introduction', in The Military as an Economic Actor: Soldiers in Business, Palgrave Macmillan, Basingstoke and New York, p 16.
2. Kees Koonings and Dirk Kruit (2002), Political Armies: The Military and Nation Building in the Age of Democracy, edited volume, Zed Books, London and New York.
3. Salim Said (1992), Genesis of Power: General Sudirman and the Indonesian Military in Politics, Institute of Southeast Asian Studies, Singapore and Pustaka Sinar Harapan, Jakarta, p 44. As a result of this centralization programme, the military received most of its funds through the state budget. At the height of the conflict with the Dutch, around 80% of the government's budget went into the war effort. I am grateful to Robert Cribb for providing this information.
4. Ian MacFarling (1996), The Dual Function of the Indonesian Armed Forces: Military Politics in Indonesia, Australian Defence Studies Centre, Canberra, p 41.
5. Said, supra note 3, at pp 107-108.
6. MacFarling, supra note 4, at p 42.
7. Harold Crouch (1988), The Army and Politics in Indonesia, Cornell University Press, Ithaca and London, p 38.
8. Richard Robison (1986), Indonesia: The Rise of Capital, Asian Studies Association of Australia, Sydney, p 252.
9. Iswandi (1998), Bisnis Militer Orde Baru: Keterlibatan ABRI dalam Bidang Ekonomi dan Pengaruhnya Terhadap Pembentukan Rezim Otoriter, Remaja Rosdakarya, Bandung, pp 146-151.
10. Robert Lowry (1996), The Armed Forces of Indonesia, Allen & Unwin, St Leonards, p 141.
11. Ernst & Young (2001), 'Yayasan Kartika Eka Paksi: Strategic Review Report Phase II', Ernst & Young, Jakarta.
12. Marcus Mietzner (2006), The Politics of Military Reform in Post-Suharto Indonesia: Elite Conflict, Nationalism, and Institutional Resistance, Policy Studies 23, East-West Center, Washington, DC.
13. Human Rights Watch (2006), Too High a Price: The Human Rights Cost of the Indonesian Military's Economic Activities, Human Rights Watch, New York, pp 48-56. The report's figures for Freeport payments to TNI and police forces are based on the company's own filings under US transparency requirements.
14. '4 Warga Tewas Ditembak Marinir', Kompas, 31 May 2007.
15. Tabloids and crime programmes on television continue to be filled with stories about soldiers being arrested for a wide variety of illegal activities. Military units also often stage public dismissal ceremonies for soldiers who have been caught committing crimes, most of which are connected to illegal fund-raising. While military commands tend to tolerate and even encourage the moonlighting of their soldiers, they do not want to see these practices exposed in the media - hence the stern action taken. '192 Prajurit Kodam I Bukit Barisan Diepecat', Kompas, 5 July 2007.
16. Mietzner, supra note 12, at p 42.
17. Article 76 of the bill stated that 'within 5 years after the enactment of this law, the government has to take over all business enterprises owned or operated by TNI in a direct or indirect manner'. See 'Undang-Undang Republik Indonesia Nomor 34 Tabun 2004 Tentang Tentara Nasional Indonesia'.
18. In his confirmation hearing in parliament, TNI Commander Djoko Santoso stated in December 2007 that 'the cooperatives in TNI will continue to be developed, with a special focus on fulfilling the basic needs of soldiers and their families'. See Jenderal TNI Djoko Santoso (2007), Paparan Pada Rapat Kepatutan dan Kelayakan [Fit and Proper Test] Calon Panglima TNI, 5 December, Jakarta, p 33.
19. 'Verifikasi Bisnis TNI Selesai Januari 2006', Kompas, 29 November 2005.
20. 'Erry Riyana Akan Pimpin Tim Pengalihan Bisnis TNI', Koran Tempo, 19 November 2007.
21. 'Aktivitas Bisnis TNI Segera Dilaporkan ke Presiden', Pelita, 28 September 2007.
22. The best documentation on Yudhoyono's rejection of the draft was presented on the Internet news portal, detik.com. It covered this event for several days: 'SBY Minta Draf Produk Transformasi TNI Diperbaiki' (9 February 2007); 'Dephan Siap Revisi Perpres Transformasi Bistlis TNI' (13 February 2007); 'Harmonisasi Institusi Pengambil Alih Bisnis TNI' (13 February 2007). The decree was eventually signed in April 2008.
23. 'Penjualan Saharn TNI di Artha Graha Disorot', Bali Post, 8 September 2005.
24. Confidential interview with an observer of military affairs, Jakarta, November 2007.
25. Interview with Effendi Choirie, member of parliament's Commission I on defence and security, Jakarta, 5 December 2007.
26. Lex Rieffel and Jaleswari Pramodhawardani (2007), Out of Business and On Budget: The Challenge of Military Financing in Indonesia, Brookings Institution Press and US Indonesian Society, Washington, DC.
27. 'Menteri Juwono: Anggaran Pertahanan 2008 Tak Dipotong', Koran Tempo, 18 August 2007.
28. Richard Katz (1997), Democracy and Elections, Oxford University Press, Oxford.
29. Ingrid Biezen and Petr Kopecky (2007), 'The state and the parties: public funding, public regulation and rent-seeking in contemporary democracies', Party Politics, Vol 13, No 2, pp 235-254.
30. Greg Fealy (1998), 'Ulama and politics in Indonesia: a history of Nahdlatul Ulama, 1952-1967', PhD dissertation, Department of History, Monash University, Melbourne.
31. Interview with Akbar Tandjung, former general chairman of Golkar, 17 December 2006, Jakarta.
32. Marcus Mietzner (2007), 'Party financing in post-Soeharto Indonesia: between state subsidies and political corruption', Contemporary Southeast Asia, Vol 29, No 2, p 242.
33. These calculations are based on PDI-P's election result in 1999, with 1,000 Rupiah paid per vote.
34. Mietzner, supra note 32, at p 244.
35. 'House of Reps: just who are they representing?' Jakarta Post, 23 July 2005.
36. 'Anwar Sebut Nama Pejabat BI', Jawa Pos, 27 November 2007.
37. 'NU dan Muhammadiyah Siapkan 200.000 Koperasi', Kompas, 7 November 2007.
38. Birma Arya Sugiarto (2006), 'Political business', Inside Indonesia, Vol 87, p 34.
39. Interview with Maruarar Sirait, 21 October 2006, Jakarta.
40. Michael Buehler and Paige Tan (2007), 'Party-candidate relationships in Indonesian local politics: a case study of the 2005 regional elections in Gowa, South Sulawesi province', Indonesia, Vol 84, pp 41-69.
41. Interview with Airlangga Hartarto, 30 October 2006, Jakarta.
42. Communication with Ganjar Pranowo, Member of Parliament for PDI-P and head of the parliamentary committee for the deliberation of the bill on political parties, 30 November 2007, Jakarta.
43. International Foundation for Electoral Systems (2004), 'Campaign finance, regulation and public disclosure in the Republic of Indonesia: reporting and public disclosure of financial activity of political parties and electoral participants', November, Jakarta, p 11.
44. Edward Page (1992), Political Authority and Bureaucratic Power, 2 ed, Harvester Wheatsheaf, New York et al, p 174.
45. Herbert Feith (1962), The Decline of Constitutional Democracy in Indonesia, Cornell University Press, Ithaca, New York, p 463.
46. Adam Schwarz (2004), A Nation in Waiting, Talisman, Singapore, pp 157-161.
47. Inbrahim Fahmy Badoh (2007), 'Skandal Dana Taktis Departemen', Koran Tempo, 5 May 2007.
48. These payments by the bureaucracy to parliamentarians came in many different forms: for instance, cash payments in envelopes handed out during hearings or visits to departments; gifts for special occasions such as weddings or the Muslim fasting month; provision of travel allowances; invitations to undergo the Muslim pilgrimage; scholarships for parliamentarians' children; contributions to Muslim boarding schools or charitable organizations run by parliamentarians; and offers to build or repair their houses. See 'Haji "Abidin" Dilaporkan ke Mendagri', Wawasan, 17 November 2007;
49. 'Percikan Kecil di Komisi XI', Suara Merdeka, 28 September 2002;
50. 'Korupsi, Parsel dan Panjang Usia', Pikiran Rakyat, 31 October 2006;
51. 'Abdullah Zaini Akui Terima Dana Taktis KPU', Suara Merdeka, 16 June 2005.
52. Marcus Mietzner (2005), 'Local democracy', Inside Indonesia, Vol 85, pp 17-18.
53. 'Penertiban Rekening Liar Pemerintah', Koran Tempo, 8 June 2007.
54. 'Cara Baru Sembunyikan Duit', Koran Tempo, 20 July 2007.
55. 'Rokhmin Dituntut 6 Tahun, Nelayan Protes', Harian Sinar Indonesia Baru, 28 June 2007.
56. 'Rokhmin Tolak Dianggap Merugikan Negara', Kompas, 4 July 2007.
57. 'KPK Periksa Fachry Hamzah Soal Dana DKP', Suara Merdeka, 26 June 2007.
58. '2009, Partai Masih Mendapat Subsidi', Jawa Pos, 2 December 2009.
59. The present discussion of illicit fund-raising in the Indonesian military, political parties and bureaucracy challenges the conventional definition of corruption as the misuse of public office for private gain. In all three cases, most of the illicitly raised funds flowed back into operations aimed at strengthening certain institutions or the position of individual leaders within them. While it could be argued that the efforts of elites to defend and empower their institutions are in themselves designed to increase their ability to extort even more money from the state, the fact that so much of the illicit funding was used for institutional activity suggests that institution-building played a significant role in the motivations of the perpetrators.
60. 'Kalsel "Endapkan" 1,05 Trilliun', Banjarmasin Post, 27 August 2007.
61. Larry Diamond and Leonardo Morlino (2004), The Quality of Democracy, Working Paper Number 20, Center on Democracy, Development, and the Rule of Law, Stanford Institute for International Studies, Stanford, CA.