Indonesia

Training in Acquisition and Fraud Prevention for the Indonesian Government

Background

After the Asian Financial Crisis of 1997-1998, the International Monetary Fund (IMF) began crafting an aid package for the nation of Indonesia, which had historically been beset with legal inconsistencies, weak state capacity, and insufficient anti-corruption enforcement.   By 2002, Indonesia’s parliament was drafting new anti-corruption laws and the following year the nation established the Indonesia Corruption Eradication Commission, or the Komisi Pemberantasan Korupsi (“KPK”). While the KPK has found prosecutorial success and attracted the majority of international headlines, Indonesia also began building systemic reforms, implementing procurement initiatives, and training government officials on international best practices.

The Project

Per Indonesian Presidential Regulation No. 54/2010, the Procurement Modernization Project aims to advance existing procurement reforms by improving systems, building capacity, and training skilled professionals. In support of these efforts, the American foreign aid agency Millennium Challenge Corporation (MCC) hired a group of consultants including Washington Business Dynamics (WBD) to provide Indonesian officials training on procurement reforms, auditing, and related international best practices.
Based on their decades of experience in procurement, accounting, acquisition, and strategy in the U.S. Federal Government, WBD and its partners were tasked in 2013 with crafting 18 training and educational programs for Indonesian procurement professionals. The modules, customized to participants’ specific capacity development needs, provide instruction grounded in international best practices.
WBD also developed in-depth specialty courses on topics such as negotiations and public speaking that were delivered in two-day workshops. All of the courses required significant research, charismatic instruction, and quantitative analysis to demonstrate that participants had made progress over their two-year program schedule.
WBD’s efforts have taken the form of sophisticated mentorship programs, educational materials designed for career-long use, and in-person presentations. These courses also relied on team-building activities to make the workshops more engaging for Indonesian participants. And, in order to gather metrics on students’ retention of course curriculum, WBD conducted pre- and post-session exams.
Additionally, WBD facilitates more advanced training modules for senior Indonesian leaders, relating to public private partnerships and how to identify fraud. Over the course of the program, WBD delivered training modules to more than 900 individuals across 44 different Indonesian government offices.
 

The Results

As a result of Indonesia’s KPK, government training programs like those supported by WBD, and a host of other anti-corruption commitments, the nation is rising in the Transparency International Corruption Perception Index. In 2013, Indonesia ranked 114 out of 176 countries, tied with Egypt. Two years later and for the first time, Indonesia entered the upper half of the table, landing at 88.  
 
WBD agrees with the analysis of both Transparency International and the World Bank, who state that working to reduce public sector corruption through improved governance ultimately lays the foundation for systemic economic improvements that foster poverty reduction. In the summer of 2017, the Millennium Challenge Corporation awarded WBD and its partners an extension of their training contract, with expectations that the extended program will reach 400 additional Indonesia public servants in the coming years.