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2008 Assessment

Indonesia: Integrity Indicators Scorecard

Indonesia : Integrity Scorecard Report > Sub-Category: Political Financing
Indicators		Score
20	Are there regulations governing the financing of political parties?	43
21	Are there regulations governing the financing of individual political candidates?	83
22	Are the regulations governing the political financing of parties effective?	17
23	Are the regulations governing the political financing of individual candidates effective?	30
24	Can citizens access records related to the financing of political parties?	8
25	Can citizens access records related to the financing of individual candidates' campaigns?	50

Indicator and sub-Indicator Details

Are there regulations governing the financing of political parties?

20a: In law, there are regulations governing private contributions to political parties.

Score:

YES

Comments:

References: Article 35 and 40 Law No. 2 Year 2008 about Political Parties

20b: In law, there are limits on individual donations to political parties.

Score:

YES

Comments: Rp. 1.000.000.000,00 (one billion) in one budget year.

References: Article 35 Law No. 2 Year 2008 about Political Parties

20c: In law, there are limits on corporate donations to political parties.

Score:

YES

Comments: Rp. 4.000.000.000,00 (4 billions) in one budget year.

References: Article 35 Law No. 2 Year 2008 about Political Parties.

20d: In law, there are limits on total political party expenditures.

Score:

YES

Comments:

References: There is no regulation on this matter.

20e: In law, there are requirements for the disclosure of donations to political parties.

Score:

YES

$Scoring Criteria :: YES: A YES score is earned if there are any requirements mandating the disclosure of financial contributions to political parties. NO: A NO score is earned if there are no requirements mandating the disclosure of contributions to political parties, existing regulations do not require a donor\'s name or amount given, or the regulations allow for anonymous donations.$

Comments:

References: There is no regulation on this matter.

20f: In law, there are requirements for the independent auditing of the finances and expenditures of political parties.

Score:

YES

$Scoring Criteria :: YES: A YES score is earned if there is a legal or regulatory requirement for the independent auditing of party finances and expenditures. The auditing is performed by an impartial third-party. NO: A NO score is earned if there are no legal or regulatory requirements for the independent auditing of political parties\' finances and expenditures or if such requirements exist but allow for parties to self-audit.$

Comments:

References: There is no regulation on this matter.

20g: In law, there is an agency or entity that monitors the financing of political parties.

Score:

YES

Comments:

References: There is no regulation on this matter.

Are there regulations governing the financing of individual political candidates?

21a: In law, there are regulations governing private contributions to individual political candidates.

Score:

YES

Comments:

References: Article 133 (2) and Article 139 (1) Law No.10 Year 2008 about Member Election for DPR, DPD, and DPRD.

21b: In law, there are limits on individual donations to political candidates.

Score:

YES

Comments: Rp. 250.000.000,00 (two hundreds fifty millions)

References: Article 133 (1) Law No.10 Year 2008 about Member Election for DPR, DPD, and DPRD.

21c: In law, there are limits on corporate donations to individual political candidates.

Score:

YES

Comments: Rp. 500.000.000,00 (Five hundreds millions)

References: Article 133 (2) Law No.10 Year 2008 about Member Election for DPR, DPD, and DPRD.

21d: In law, there are requirements for the disclosure of donations to individual political candidates.

Score:

YES

$Scoring Criteria :: YES: A YES score is earned if there are any requirements mandating the disclosure of financial contributions to individual political candidates. NO: A NO score is earned if there are no requirements mandating the disclosure of contributions to individual political candidates, existing regulations do not require a donor\'s name or amount given, or the regulations allow for anonymous donations.$

Comments: KPU (General Election Commission) announces the audited donations to the public in ten days at the latest after KPU got the audited donations.

References: Article 135 (5) Law No.10 Year 2008 about Member Election for DPR, DPD, and DPRD.

21e: In law, there are requirements for the independent auditing of the campaign finances of individual political candidates.

Score:

YES

$Scoring Criteria :: YES: A YES score is earned if there is a legal or regulatory requirement for the independent auditing of an individual candidate\'s campaign finances and expenditures. The auditing is performed by an impartial third-party. NO: A NO score is earned if there are no legal or regulatory requirements for the independent auditing of an individual candidate\'s campaign finances and expenditures or if such requirements exist but allow for candidates to self-audit.$

Comments: The candidates must deliver to public accountant the campaign finances in 15 days at the latest. The audits occur once

References: Article 135 (2) Law No.10 Year 2008 about Member Election for DPR, DPD, and DPRD.

21f: In law, there is an agency or entity that monitors the financing of individual political candidates' campaigns.

Score:

YES

$Scoring Criteria :: YES: A YES score is earned if there is a domestic agency or set of domestic agencies/entities formally assigned to monitor and enforce laws and regulations around the financing of individual political candidates\' campaigns. A YES score is earned even if the agency/entity is ineffective in practice. NO: A NO score is earned if there is no such agency or entity.$

Comments:

References: There is no regulation on this matter.

Are the regulations governing the political financing of parties effective?

22a: In practice, the limits on individual donations to political parties are effective in regulating an individual's ability to financially support a political party.

Score:

100

Comments:

References: KRHN Website, Critisize Political Party Law in 2007. [ LINK ]

Asep Warlan, Academic, Universitas Parahyangan, July 31, 2008, Campus UNPAR at Law Faculty, Bandung.

22b: In practice, the limits on corporate donations to political parties are effective in regulating a company's ability to financially support a political party.

Score:

100

Comments:

References: Antara Website, July 26, 2007, ICW: Plafon is too high makes political party cooptated, [ LINK ]

Asep Warlan, Academic, Universitas Parahyangan, July 31, 2008, Campus UNPAR at Law Faculty, Bandung.

22c: In practice, the limits on total party expenditures are effective in regulating a political party's ability to fund campaigns or politically-related activities.

Score:

100

Comments: There is no regulation on this matter. In fact, many political parties spend extremely large sums for political campaigns.

References: Website Kompas, Dik, Big: The Mass Campaign Mobilization Fund. March 30 2004. [ LINK ].

22d: In practice, when necessary, an agency or entity monitoring the financing of political parties independently initiates investigations.

Score:

100

Comments:

References: Andri P. Kantaprawira, Member of election commission (KPU) in Bandung Municipality, September 8, 2008, Office of KPU Kota Bandung, Jl. Soekarno-Hatta, Bandung.

KPU Website, August 2004, KPU: Investigative audit Not Needed for Campaign Fund Report. [ LINK ].

Peer Review Comments: There is no case in Indonesia in which an independent agency took the initiative to investigate a political party. The law also doesn't indicate that this kind of investigation could happen.

22e: In practice, when necessary, an agency or entity monitoring the financing of political parties imposes penalties on offenders.

Score:

100

Comments:

References: Media Online (Sinar Harapan), ady/ina, Constitutional Court Involves Election Commission and NGO to Handle Dispute. December 13, 2003. [ LINK ].

Yuli Tri Suwarni, Journalist, The Jakarta Post, September 8, 2008, detikbandung Office (Portal Detikbandung), Jl. Lombok, Bandung.

22f: In practice, contributions to political parties are audited.

Score:

100

Comments: There are no regulatory requirements on this matter except audits for campaign funds.

References: Website MTI, June 1999, Not All Political Parties are Transparent. s [ LINK ]

Are the regulations governing the political financing of individual candidates effective?

23a: In practice, the limits on individual donations to political candidates are effective in regulating an individual's ability to financially support a particular candidate.

Score:

100

Comments:

References: Asep Warlan Yusuf, Law expert, July 31, 2008, Kampus Fakultas Hukum UNPAR, Jl. Ciumbuleuit, Bandung.

Media Online (Tempo Interaktif), Ibrahim Fahmy Badoh, Politics Corruption Manager for Indonesia Corruption Watch (ICW), If political parties do business, December 27, 2006. [ LINK ]

Peer Review Comments: In many cases, individual donations are not delivered to political party accounts. However, this is the case for some contributions, such as artists for campaigns, goods (foods, etc) to distribute in campaigns, etc.

23b: In practice, the limits on corporate donations to individual candidates are effective in regulating a company's ability to financially support a candidate.

Score:

100

Comments:

References: Asep Warlan Yusuf, Law expert, July 31, 2008, Kampus Fakultas Hukum UNPAR, Jl. Ciumbuleuit, Bandung.

Media Online (Tempo Interaktif), Ibrahim Fahmy Badoh, Politics Corruption Manager for Indonesia Corruption Watch (ICW), If political parties do business, December 27, 2006. [ LINK ]

Peer Review Comments: In many cases, company donations are not delivered to political party accounts. However, this is the case for some contributions, such as artists for campaigns, goods (foods, etc) to distribute in campaigns, etc.

23c: In practice, when necessary, an agency or entity monitoring the financing of individual candidates' campaigns independently initiates investigations.

Score:

100

$Scoring Criteria :: 100 Score Criteria: The agency or entity aggressively starts investigations into allegations of wrong doing with respect to the financing of individual candidates\' campaigns. The agency is fair in its application of this power. 50 Score Criteria: The agency or entity will start investigations, but often relies on external pressure to set priorities, or has limited effectiveness when investigating. The agency, thought limited in effectiveness, is still fair in its application of power. 0 Score Criteria: The agency or entity rarely investigates on its own, or the agency or entity is partisan in its application of this power.$

Comments:

References: Media Online (Gatra), Heru Pamuji, Luqman Hakim Arifin, dan Bernadetta Febriana, The Steps to Use Candidate's Fund. July 30, 2004, [ LINK ].

Website (Masyarakat Transparansi Indonesia), June 1999, The result of political party audit: Not all political parties are transparent. ://www.transparansi.or.id/majalah/edisi9/9berita_13a.html

23d: In practice, when necessary, an agency or entity monitoring the financing of individual candidates' campaigns imposes penalties on offenders.

Score:

100

Comments:

References: Media Online (Gatra), Heru Pamuji, Luqman Hakim Arifin, dan Bernadetta Febriana, The steps to use candidates fund. July 30, 2004. [ LINK ].

Yuli Tri Suwarni, Journalist, The Jakarta Post, September 8, 2008. Detikbandung Office (Portal Detikbandung), Jl. Lombok, Bandung.

23e: In practice, the finances of individual candidates' campaigns are audited.

Score:

100

$Scoring Criteria :: 100 Score Criteria: The finances of individual candidates\' campaigns are regularly audited using generally accepted auditing practices. 50 Score Criteria: The finances of individual candidates\' campaigns are audited, but audits are limited in some way, such as using inadequate auditing standards, or the presence of exceptions to disclosed contributions. 0 Score Criteria: The finances of individual candidates\' campaigns are not audited, or the audits performed have no value in tracking contributions. Audits may be performed by entities known to be partisan or biased in their practices.$

Comments:

References: Heri Sapari, Member of election commission in Bandung Municipality, KPU Office Kota Bandung, Jl. Soekarno-Hatta, Bandung, September 8, 2008.

Website ([ LINK ]), Audit Campaign Funds? That's Impossible! August 7, 2008, [ LINK ]" target="_blank">[ LINK ]" http://www.hukumonline.com/detail.asp?id=19875&cl=Berita

Can citizens access records related to the financing of political parties?

24a: In practice, political parties disclose data relating to financial support and expenditures within a reasonable time period.

Score:

100

Comments: Till August 2005 (after election in 2004), There were only 3 from 47 political party which submitted their financial report to KPU (General Election Commission). And they were late submitting this report.

References: Andri P. Kantaprawira, Member of election commission (KPU) in Bandung Municipality, September 8, 2008, Office of KPU Kota Bandung, Jl. Soekarno-Hatta, Bandung

Yuli Tri Suwarni, Journalist, The Jakarta Post, September 8, 2008, detikbandung Office (Portal Detikbandung), Jl. Lombok, Bandung.

Tempo Interaktif, Ibrahim Fahmy Badoh, Member of Executive Body of Indonesia Corruption Watch, 25 September 2006, Accountability of Financing Political Party.

Peer Review Comments: Some political parties disclose their budgets to the public every year. They use this as a method of getting sympathy from the public.

Peer Review Comments: Sometimes data provided by the political parties are not accurate.

24b: In practice, citizens can access the financial records of political parties within a reasonable time period.

Score:

100

Comments: According to our resource person, they never saw the financial records of political party. Furthermore the law on accessing the financial records for political party is not regulated.

References: Website (BPKP), Adri, Campaign Fund Accountability is Low, July 27, 2004. [ LINK ].

Andri P. Kantaprawira, Member of election commission (KPU) in Bandung Municipality, September 8, 2008, Office of KPU Kota Bandung, Jl. Soekarno-Hatta, Bandung

24c: In practice, citizens can access the financial records of political parties at a reasonable cost.

Score:

100

Comments: According to our resource person, they never saw the financial records of political party. Furthermore the law on accessing the financial records for political party is not regulated.

References: Website MTI, June 1999, Not all Political Parties Are Transparent, [ LINK ].

Peer Review Comments: Records can be obtained from political parties, but it can be difficult and the accuracy of data can't be verified.

Can citizens access records related to the financing of individual candidates' campaigns?

25a: In practice, individual political candidates disclose data relating to financial support and expenditures within a reasonable time period.

Score:

100

Comments: There is regulation for individual candidates to audit their campaign fund. They have to submit their finance record to KPU (General Election Commission). And KPU through independent auditor will audit this record. Hence citizens could get the record from KPU after the record has been audited.

References: Website (Tempo Interaktif), Ecep S. Yasa, Mega-SBY is Ready to Open Their Source of Funding, July 29, 2004. [ LINK ].

Heri Sapari, Member of Bandung Municipal Election Commission, KPU Office Kota Bandung, Jl. Soekarno-Hatta, Bandung, September 8, 2008.

Peer Review Comments: I never see individual candidates wholly and accurately disclose their expenditures and funding in the media or other outlets.

25b: In practice, citizens can access the financial records of individual candidates (their campaign revenues and expenditures) within a reasonable time period.

Score:

100

Comments: The records are not available on line. Citizens have to copy the records (usually in hard copy format) by their own.

References: Heri Sapari, Member of Bandung Municipal Election Commission, KPU Office Kota Bandung, Jl. Soekarno-Hatta, Bandung September 8, 2008.

Media Online (Tempo Interaktif), Ibrahim Fahmy Badoh, Executive Member of Indonesia Corruption watch (ICW), September 25, 2006. [ LINK ]

Peer Review Comments: It is very difficult to access records of contributions to a candidate, and not all of their campaign revenue is always accounted for.

25c: In practice, citizens can access the financial records of individual candidates (their campaign revenues and expenditures) at a reasonable cost.

Score:

100

Comments: The records are not available on line. Citizens have to copy the records (usually in hard copy format) by their own.

References: Heri Sapari, Member of Bandung Municipal Election Commission, KPU Office Kota Bandung, Jl. Soekarno-Hatta, Bandung September 8, 2008.

Yuli Tri Suwarni, Journalist, The Jakarta Post, Detikbandung Office (Portal Detikbandung), Jl. Lombok, Bandung, September 8, 2008.

Peer Review Comments: It is very difficult to access records of contributions to a candidate, and not all of their campaign revenue is always accounted for.