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View all search resultsWeak transparency threatens economic ambitions: Watchdogs
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A student holds a poster depicting President Prabowo Subianto on June 12 during a protest against government policies, including state budget spending, fuel price hikes and an expanded role of the military in civilian affairs, in Jakarta. (Reuters/Ajeng Dinar Ulfiana)
W
eak transparency in public institutions creates opportunities for mismanagement and corruption that could threaten Indonesia’s economic ambitions, unless the greater state role in the economy is matched by stronger oversight and accountability, antigraft groups have warned.
Indonesia Corruption Watch (ICW) researcher Zararah Azhim Syah said President Prabowo Subianto’s administration had become “increasingly opaque” with government processes appearing “designed to avoid transparency”, which complicates public scrutiny.
A lack of transparency has spread across government, he continued, pointing to presidential trips and visits, the recovery of state losses, spending on flagship programs and the fact that this year’s budget implementation list (DIPA) has not yet been released.
“It’s becoming more apparent, such as when the cabinet secretary responds, ‘it’s right there,’ instead of providing answers [to reporters’ questions],” Azhim told The Jakarta Post on Monday. “That reflects the Prabowo administration's unwillingness to be transparent.”
Read also: Excessive protections for Danantara bondholders raise reputational risks
The country’s growing reliance on state-owned enterprises (SOEs) under state asset fund Danantara could advance “economic capture”, should transparency and competition be weakened, said François Valérian, chairman of global anticorruption NGO Transparency International.
“There is a governance risk when there is a risk of economic capture, when there is the risk that the economy is being captured by the government or by the party in power and its allies,” Valérian said in a sit-down session with the Post on Thursday.
