PLN BERSIH: Clean Business! A Civil Society Support for - - PowerPoint PPT Presentation

PLN BERSIH: Clean Business!

A Civil Society Support for Mainstreaming Corporate Governance in Indonesia

Good Reason

• In Indonesia, 2 of 4 business person

think that their company has failed to win a contract or gain new business in this country because a competitor paid a bribe.

• Both foreign owned companies and

domestic owned companies share the same risk failed to win a contract or gain new business in this country because a competitor paid a bribe.

• Both publicly listed companies and

publicly listed companies share the same risk failed to win a contract or gain new business in this country because a competitor paid a bribe.

During the last 12 months, do you think that your company has failed to win a contract or gain new business in this country because a competitor paid a bribe?

NO YES TOTAL 73% 27% Indonesia 53% 47% FOREIGN OWNED More than 20% foreign owned 75% 25% Not more than 20% foreign owned 72% 28% PUBLICALLY LISTED Publically listed on stock exchange 79% 21% Not publically listed

• n stock exchange

72% 28% Source: Bribe Payers Survey, Transparency International Indonesia (2011)

Good Reason

• Almost 80 person business person

think that their company has an ethical duty to fight corruption.

• Both foreign owned companies

and domestic owned companies share the same awareness about an ethical duty to fight corruption.

• Both publicly listed companies and

publicly listed companies share the same awareness about an ethical duty to fight corruption.

Does your companies has an ethical duty to fight corruption?

NO YES TOTAL 21% 79% Indonesia 20% 80% FOREIGN OWNED More than 20% foreign owned 20% 80% Not more than 20% foreign owned 21% 79% PUBLICALLY LISTED Publically listed on stock exchange 16% 84% Not publically listed

• n stock exchange

22% 78% Source: Bribe Payers Survey, Transparency International Indonesia (2011)

Good Reason

Does your companies No Yes Have a code of ethics 6% 94% Include corruption prevention in its risk management strategy 33% 67% Have an anti-corruption policy 35% 65% Have measures in place to support potential whistle blowers 37% 63% Prohibit facilitation payments 45% 55% Conduct regular staff training on anti-corruption 75% 25% Source: Bribe Payers Survey, Transparency International Indonesia (2011)

• Almost all of business person think

that their company have been implemented corporate measure in addressing anti corruption: code of ethics, integrity management system, anticorruption policy, whistle blowing system.

• However, not more than half of

business person think that their company prohibit facilitation payment (THE MOST IMPORTANT FACTOR ON CORRUPTION INCIDENCE) and only 25% of business person think that their company regular training on anticorruption.

Selection Strategic Partner

PLN is state owned companies that operate on high risk business sector. Utilities sector has become the second highest to be perceived the competition level being abused by bribery. Meanwhile, PLN has Having monopoly right and operating nationally coverage

Does your companies fail win contract when competitor paid bribery? Sector No Yes

Public Works Contracts and Construction 62% 38% Utilities 63% 37% Telecommunications 65% 35% Heavy Manufacturing 68% 32% Real Estate, Property 70% 30% Information Technology 73% 27% Consumer Services 74% 26% Pharmaceutical and Healthcare 74% 26% Light manufacturing 76% 24% Oil and Gas 80% 20% Transportation and Storage 80% 20% Agriculture 82% 18% Banking and Finance 85% 15%

Source: Bribe Payers Survey, Transparency International Indonesia (2011)

PLN is strategis SOE leading in anticorruption issue

PLN BERSIH: General Concept

Corporate Governance Integrity Transparency Accountability Participation

• PLN BERSIH adopt corporate

governance concept.

• Under Corporate Integrity concept, PLN

BERSIH focused on main four principles, PITA: Participation, Integrity, Transparency, and Accountability.

• Implementing PITA expected that

– Greater participation, greater collectively trust and ownership. – Greater integrity, greater good corporate culture – Greater transparency, greater

soundness policy.

– Greater accountability, greater more

credible system.

• Simultaneously, implementing PITA

concept potential to reduce corruption risk.

Decomposing of PITA Concept

Participation Tone of the top leadership and strong internal commitment Collective action among pillars governance: PLN, Vendor, and Customer Regular multi stakeholder forum to monitor the improvement. Integrity Compliance to Code

• f Ethic or/and Code
• f Conduct

Setting Vendor Criteria on Anti Corruption to Monitor External threat Increasing Integrity level of procurement and services Transparency Increasing Openness Public Information Responsive Public Ask for Public Information. Making Public Information Easy to Access. Accountability Credible complaint handling mechanism Credible Whistle Blowing System and Credible Graft Rule

National Initiative Goes To Local Initiative

PLN Bersih have been implementing to local unit. Shortly, after PLN Bersih socialized, all pilot project in local unit vibrantly put into action all of programs within PLN Bersih.

1.7 1.8 1.8 1.9 2.3 2.3 2.4 2.5 2.5 2.5 2.5 2.6 2.7 2.9 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6 2.8 3.0

Pembangkitan Jawa Bali Wilayah Sumatera utara Pusat Pemeliharaan Ketenagalistrikan Pusat Penelitian dan Pengembangan Ketenagalistrikan Rerata 13 Unit Pusat Pendidikan dan Pelatihan Jasa Sertifikasi Distribusi Jawa Tengah dan Yogyakarta Distribusi Bali Distribusi Jawa Timur Wilayah Bangka Belitung Distribusi Jakarta Raya dan Tangerang Distribusi Lampung Distribusi Jawa Barat dan Banten

Implementation of PLN Bersih (0 mean poor implementation, 3 mean excellent implementation)

0.60 0.60 0.55 0.56 0.60 0.60 0.47 0.33 0.48 0.51 0.50 0.52 0.42 0.46 1.13 1.04 1.13 1.10 1.03 1.03 1.00 1.17 0.80 0.95 0.93 0.78 0.60 0.68 0.60 0.53 0.40 0.38 0.53 0.42 0.54 0.32 0.50 0.40 0.20 0.20 0.37 0.23 0.60 0.50 0.53 0.50 0.37 0.43 0.45 0.60 0.53 0.45 0.27 0.30 0.40 0.32 Distribusi Jawa Barat dan Banten Distribusi Lampung Distribusi Jakarta Raya dan Tangerang Wilayah Bangka Belitung Distribusi Jawa Timur Distribusi Bali Distribusi Jawa Tengah dan Yogyakarta Jasa Sertifikasi Pusat Pendidikan dan Pelatihan Rerata 13 Unit Pusat Penelitian dan Pengembangan Ketenagalistrikan Pusat Pemeliharaan Ketenagalistrikan Wilayah Sumatera utara Pembangkitan Jawa Bali

Implementation of PLN categorized by PITA Principles (0 mean poor implementation, 3 mean excellent implementation)

Participation Integrity Transparency Accountability

9 7 8

How to streng ngthe hena naccess ss to public information? TII

facilitated PLN to strengthen accessto public information through consultation withthe commissionfor public information (KIP).

How to streng ngthe hena naccess ss to public information in front ntline ne uni nit? TII facilitated a

series ofregional workshop to institutionalize public information management, followed by the appointment of a task force unit for access to public information.

How to st strengthen procurement nt legal al framework? Research, exper

t consultation, and serial workshops with key stakeholders have been conducted to provide guidelines for procurement reform, according to international standards in terms of transparency, accountability, but also value for money.

6 4 5

How to monitor vendor complian ance to PLN BERSIH: NO SUAP criteria? a? PLN Bersih No SUAP! is

an internal collective commitment not to demand or accept bribes. This commitment against bribery will be strengthened by a collective pact with vendors, supported by a set of criteria applied to vendors and verified an independent party.

How to st strengthen integrity at at regiona nal level? A PLN Bersih No SUAP!

guideline document is being drafted to facilitate implementation at local unit level.

How to moni nitor compliance to the code of ethic an and code

• f conduct? T II facilitated t

he development of a gift & gratification regulation to support PLN’s internal commitment against bribery. The regulation will provide guidance for PLN officials and regulate interactions with vendors that could potentially lead to bribery.

3 1 2

What is s collective action against st bribery?

It promotes anti-corruption commitment amongst vendors. Vendors identify and commit to meet eligibility criteria to qualify as PLN vendor and support PLN’s commitment against corruption.

What is s the multi stakeholder forum? TII

initiated multi stakeholder meetings involving key stakeholders. The forum will monitor performance and provide input related to integrity, transparenc y , and accountability related to procurement and public service initiatives.

What is s a reform minded lead ader? Nur

Pamudji, CEO PT. PLN (Persero) has demonstrated his comm itment to anti-corruption reform. He invited Transparency International Indones ia (TII) to design and facilitate a comprehensive anti corruption program focused on both procurement and public services reform.

10 10 11 11 12 12

How to reach corporat ate governa nanc nce excellence? TII is mapping

several relevant indicators monitor the impact of PLN BERSIH: NO SUAP!. International standards such as APEC Good Governance Guidelines will be used to set GCG benchmark and foster the achievement of high standards.

How to mak ake more credible complaint han andling mechan anism sm? ? T

II facilitated PLN to strengthen a more credible complaint handling mechanism through a high level meeting with the Com missioner of Ombudsman of Indonesian Republic. This meeting recommends som e r

• om

for improvements including m

• re

responsible the m echanism through inter-agency relationship.

How to st streng ngthe hen n procurement legal framework? Research, exper

t consultation, and serial workshops with key stakeholders have been conducted to provide guidelines for procurement reform, according to international standards in terms of transparency, accountability, but also value for money.

Achievements

Under 1st MOU TII-PLN

Progress and Upcoming

Under 2nd MOU TII-PLN

• Finalizing Procurement Guidelines.
• Developing Syllabus and Curriculum for Pelopor PLN

BERSIH

• Training agent of change PLN BERSIH: Batch I and Batch

II and next Batch (target: 30% of PLN staffs)

• Replicate PLN BERSIH concept at 13 local unit.
• Survey on Integrity Risk, Procurement Integrity, and

Service Integrity at 13 local unit.

• Finalizing Assessment Methodology to monitor

implementation PLN BERSIH concept at local level.

• Site visit to scrutinize Integrity Risk and Quality of

Procurement Integrity and Service Integrity.

CEO PLN, Nur Pamudji, receives Bung Hatta Anticorruption Award

CEO PLN, Nur Pamudji, receives KIP (Public Information Openness) Award from Vice President of Indonesia

Nur Pamudji (CEO PLN), Natalia Soebagjo (TII), and Dedie A. Rachim (KPK) in PLN Bersih Declaration Nur Pamudji (CEO PLN) and Natalia Soebagjo (TII) signed Memorandum of Understanding in Implementing Anticorruption Principles

Nur Pamudji (CEO PLN) sharing about PLN Bersih initiative in APEC-Senior Officer Meeting, Anti Corruption and Transparency Working Group

Nur Pamudji (CEO PLN) named as the best CEO V ersion Tempo Magazine on his anticorruption initiatives

Thank You