(Jakarta Globe) US$ 75 Million or 1 Triilion Rupiah: How can we entrust so much money to political parties?

12/12/2018

Activists on Tuesday criticized Home Affairs Minister Tjahjo Kumolo’s proposal to give $75.8 million to each political party, saying that it would have the opposite effect to that intended and aggravate rampant corruption practices inside the political system.

“This is a long term plan. Hopefully we can implement this by 2019 if we’re in sound financial condition,” Tjahjo said at his office on Monday.

The minister said the funding also comes with greater demand for transparency from the parties as well as tougher requirements for parties to gain seats in the House of Representatives.

“If we find any misappropriation then we can disband that party,” he said.

By law, parties that have seats in the House are eligible for annual state funding administered according to the size of the party’s presence. But parties currently only receive a maximum of Rp 2.6 billion ($19,700) a year each, according to data provided by the Indonesian Forum for Budget Transparency (Fitra).

Officials from various parties have previously claimed state funding covers less than 2 percent of expenses. Tjahjo said this forces many politicians to look for other sources of income — legitimate and otherwise — particularly as parties are unable to receive funds from foreign sources or set up a commercial arm.

“So regional leaders will not be told to look for cash. Council members will have to stop manipulating budgets or rigging tenders for [state projects],” the minister said. “We will strengthen the law. We will also demand for greater transparency and tighter supervision.”

But with hundreds of politicians now serving lengthy jail terms for embezzlement or receiving bribes and kickbacks, Indonesia Corruption Watch coordinator Ade Irawan said parties must first show they are willing to be more transparent on their finances.

Parties “are not even transparent about how they spend money which originates from state coffers,” he said.

Fariz Fachryan of Gajah Mada University’s Anti-Corruption Studies Center echoed the sentiment.

“How can we entrust so much money to political parties that have been reluctant to be transparent?” he told Harian Terbit newspaper.

Uchok Sky Khadafi, director of Center for Budget Analysis said the same argument was also made when parties first became eligible for state funding under the 2008 Law on Political Parties.

“Where is the guarantee that politicians will not commit acts of corruption if the state provide [parties greater] financial assistance?” he said.

Fitra secretary Apung Widadi noted virtually all parties have refused to make their financial reports public, and on the rare occasion that they do, the reports are incomplete and not professionally prepared.

“A party’s treasurer is not someone who understands standard bookkeeping practices,” he said.

Enforcement is also lax when it comes to parties’ finances, with no administrative or criminal sanctions ever imposed on party elites despite many expenses and donations going unreported, Apung said.

“So instead of hindering corruption, the Rp 1 trillion funding will only increase corruption,” Apung said.

Uchok of CBA said even with the current system where parties receive only several billions of rupiah in state funding, the government and law enforcement have a tough time ensuring the funds are spent for their intended purpose and not going into the pockets of a few elite.

“Parties today don’t belong to the people; they belong to a few individuals,” he said.

Djayadi Hanan, executive director of think tank group Saiful Mujani Research Center said Tjahjo’s intention is good but the system will not work under current conditions.

The scheme is intended to enable underfunded legislative candidates or parties to compete on a more even playing field.

“But before such funding can be provided, the rules and regulations regarding parties and their finances must be strengthened first,” he said.

Vice President Jusuf Kalla expressed his surprise on Monday at the minister’s comments, saying Tjahjo’s remarks are only a proposal at this stage.

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(Jakarta Globe) US$ 75 Million or 1 Triilion Rupiah: How can we entrust so much money to political parties?