Jakarta, ID
Saturday, May 26 2012, 13:32 PM

Business

Can corporates influence 'good governance' in Indonesia?

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Debnath Guharoy, Consultant

It's not that people are fickle. In politics, things happen and moods swing like a pendulum. At the end of 2006, most people were giving the government a thumbs-down on most key measurements of the Roy Morgan Good Governance Monitor.

The first quarter of 2007 showed mixed results, with improvements on Trust, a continuing slide on Management, a significant decline on handling Corruption, tempered with a significant recovery on Democracy.

The fact that the Roy Morgan Consumer Confidence index went down two points to 107 in the same quarter is a reflection of the consumer's state of mind. Not unhappy, but not exactly buoyant either. These observations are based on Roy Morgan Single Source, the country's largest syndicated survey with over 27,000 Indonesian respondents annually, projected to reflect 90 percent of the population over the age of 14. The results are updated every 90 days.

Trust is measured by the statement, ""I don't trust the current government"". Recovering gradually from the painful fuel price hikes of 2005, steady progress was made on this key measure throughout 2006 till George Bush's visit and Tommy Suharto's release coincided in the last quarter of last year.

In the January-March quarter of 2007, the number of people who don't trust the government went down once again, to 33.2 percent, bringing it back to close to the pre-fuel hikes period. The fact that this government has withstood endless natural calamities without forgiving the makers of manmade disasters, like the Central Java mudslides, will have influenced that score.

It should be pointed out that 67 percent of the population trusts the SBY government today, a level of support far greater than John Howard enjoys in neighboring Australia.

The statement, ""The Government is doing a good job running this country,"" measures how the people rate the government on Management. This key score has continued to dip, falling another 1.3 percentage points in the last quarter.

Political capital continues to be squandered by this administration, which is frittering away the opportunity to take key new initiatives to reenergize the economy. While 5-6 percent annual growth in GDP is creditable by any standard, there have not been any noteworthy moves by this government to add an extra fillip to the economy.

Even the recent talk about SMEs anchoring the economy has remained idle chatter, with no concrete plan, much less any action, to support those who can indeed make a difference to the nation's economy. Democracy brings its own impediments and debate is one of them.

Yet ironically, those very impediments are indeed a celebration of democracy itself. The fact that the people's representatives are loudly demanding more debate, thereby slowing down the process of progress and curtailing executive power, is a reassuring sign that democracy is at work in an Indonesia that only recently overthrew autocracy.

Whether we like every opinion democracy generates, or every result it produces, is another matter altogether. But the people's perception of Democracy is on the rise again. It is measured by the statement, ""Democracy is working in Indonesia"". There has been a 3 percent improvement from 66 percent in the previous quarter, but still not as high as the quarters before.

""Corruption is a major problem affecting this country,"" is the statement that measures people's perception of this key aspect of life. This measurement of the Good Governance Monitor is also showing negative signs, with a significant increase in the number of people believing it is a major problem.

Today, this stands at 84.3 percent, up by almost 6 percent, putting an end to the steady improvement seen in previous quarters. A lot of talk and little action by the government lay at the heart of this perception during the January-March quarter.

The recent treaty with Singapore and the impending extradition of businessmen who have allegedly committed commercial crimes will undoubtedly have a positive impact on this score.

A moment of introspection is warranted here. While most of us are quick to accuse politicians of low morals and high crimes, how guilty are we of misdemeanors ourselves? After all, it is business that greases the wheel of politics, to state the obvious.

Legendary amounts of money find their way into the hands of the privileged few, and the cost is callously passed on to the millions of innocent consumers, fathers and mothers struggling to make ends meet. How hard do we really try to stand our ground and do the right thing? Is corruption a problem only for the politicians to solve, and to be abused for if they don't seem to be doing enough?

As a partner in crime, business has a role to play in addressing this national malaise.

""Corporate Social Responsibility"" is just another buzz-phrase for the boardroom if company directors don't make an effort to help fight the battle against this grim social injustice.

To ignore that reality, perpetuate bad habits, abuse executive privilege while throwing stones from glass houses, is both cynical and shallow. The consumer deserves more respect.

This is not a challenge unique to Indonesia, because corruption is an issue everywhere for all peoples. It is the endemic nature of the problem here that makes it a national disease that requires urgent attention from all concerned, not just the politicians and the bureaucrats.

The writer can be contacted at Debnath.Guharoy@roymorgan.com