Hendi Yogi Prabowo

To be corrupt or not to be corrupt

Purpose – The purpose of this paper, which is based on author’s study, is to shed light on the behavioral elements of corruption in particular the decision-making process undertaken by potential offenders to construct a solid basis for effective corruption eradication strategy in Indonesia. Design/methodology/approach – This study examines corruption cases in Indonesia in the past two years which have been investigated by the Indonesian Corruption Eradication Commission as well as relevant literature on corruption to gain a better understanding of corruption offenders’ behavior. Findings – The author establishes that by looking at the behavioral side of corruption we may gain more understanding on potential offenders’ way of thinking as a reference in dealing with corruption. The discussions in this paper suggest that when potential offenders are exposed to pressure/motivation, opportunity and rationalization to commit corruption, they will (consciously or subconsciously) assess all the perceived benefits...

Re-understanding corruption in the Indonesian public sector through three behavioral lenses

Purpose Based on the authors’ study, the purpose of this paper is to better understand why corruption in the Indonesian public sector is so resilient from three behavioral perspectives: the Schemata Theory, the Corruption Normalization Theory and the Moral Development Theory. Design/methodology/approach This paper examines corruption trends and patterns in the Indonesian public sector in the past decade through examination of reports from various institutions as well as other relevant documents regarding corruption-related issues to gain a better understanding of the behavioral mechanisms underlying the adoption of corruption into organizational and individual schemata. This paper also uses expert interviews and focus group discussions with relevant experts in Indonesia and Australia on various corruption-related issues. Findings The authors establish that the rampaging corruption in the Indonesian public sector is an outcome of cumulative decision-making processes by the participants. Such a process is influenced by individual and organizational schemata to interpret problems and situations based on past knowledge and experience. The discussion in this paper highlights the mechanisms of corruption normalization used to sustain corruption networks especially in the Indonesian public sector which will be very difficult to break with conventional means such as detection and prosecution. Essentially, the entire process of normalization will cause moral degradation among public servants to the point where their actions are driven solely by the fear of punishment and expectation of personal benefits. The three pillars of institutionalization, rationalization and socialization strengthen one another to make the entire normalization structure so trivially resilient that short-term-oriented anti-corruption measures may not even put a dent in it. The normalization structure can be brought down only when it is continuously struck with sufficient force on its pillars. Corruption will truly perish from Indonesia only when the societal, organizational and individual schemata have been re-engineered to interpret it as an aberration and not as a norm. Research limitations/implications Due to the limited time and resources, the discussion on the normalization of corruption in Indonesia is focused on corruption within the Indonesian public institutions by interviewing anti-fraud professionals and scholars. A more complete picture of corruption normalization in Indonesia can be drawn from interviews with incarcerated corruption offenders from Indonesian public institutions. Practical implications This paper contributes to the development of corruption eradication strategy by deconstructing corruption normalization processes so that the existing resources can be allocated effectively and efficiently into areas that will result in long-term benefits. Originality/value This paper demonstrates how the seemingly small and insignificant behavioral factors may constitute “regenerative healing factor” for corruption in Indonesia.

A better credit card fraud prevention strategy for Indonesia

Purpose – The purpose of this paper, which is based on authors PhD study, is to assess the efficacy of Indonesias credit card fraud prevention from a strategic point of view, using a model of payments fraud prevention practice developed by the author based on similar practices in the USA, the UK and Australia.Design/methodology/approach – Primary and secondary data, particularly from the payments system of the USA, the UK, Australia and Indonesia were used. Such data were collected by means of literature reviews and in‐depth interviews with payments system professionals.Findings – The author establishes that credit card fraud prevention practice in Indonesia is still at a lower level of robustness than those in the USA, the UK and Australia. Deficiencies in the credit card fraud prevention practice in Indonesia are indicated, inter alia, by a lack of reliable fraud data collection, management and distribution mechanisms as well as a lack of effective and efficient identity management practice. Deficienc...

De-normalizing corruption in the Indonesian public sector through behavioral re-engineering

Purpose Based on the authors’ study, the purpose of this paper is to ascertain the best approach to mitigate corruption in the Indonesian public sector. To do so, the paper uses three behavioral perspectives: the Schemata Theory, the Corruption Normalization Theory and the Moral Development Theory. Design/methodology/approach This paper is part of the authors’ study to examine corruption patterns in Indonesia in the past 10 years through examination of reports from various institutions as well as other relevant documents addresses corruption-related issues to explore various options for mitigating corruption through behavioral re-engineering. For the purpose of gaining various perspectives on anti-corruption measures, this study also uses expert interviews and focus group discussions with relevant experts in Indonesia and Australia on various corruption-related issues. Findings The authors establish that despite the fall of the New Order regime nearly two decades ago, corruption remains entrenched within the post-Suharto Governments. The normalized corruption in Indonesia is a legacy of the New Order regime that shaped societal, organizational and individual schemata in Indonesia. The patrimonial style of leadership in particular within the regional governments resulted in increasing rent-seeking activities within the decentralized system. The leadership style is also believed to have been supporting the normalization of corruption within the public sector since the New Order era. The three-decade-old systematic normalization of corruption in the Indonesian public sector can only be changed by means of long and systematic de-normalization initiatives. To design the best intervention measures, decision makers must first identify multiple factors that constitute the three normalization pillars: institutionalization, rationalization and normalization. Measures such as periodical reviews of operational procedures, appointment of leaders with sound morality, anti-corruption education programs, administering “cultural shocks”, just to name a few, can be part of multifaceted strategies to bring down the normalization pillars. Research limitations/implications The discussion on the options for de-normalization of corruption in Indonesia is focused on corruption within the Indonesian public institutions by interviewing anti-fraud professionals and scholars. A better formulation of strategic approaches can be developed by means of interviews with incarcerated corruption offenders from the Indonesian public institutions. Practical implications This paper contributes to the development of corruption eradication strategy by suggesting options for de-normalizing corruption in the Indonesian public sector so that resources can be allocated more effectively and efficiently to mitigate the problem. Originality/value This paper highlights the importance of behavior-oriented approaches in mitigating corruption in the Indonesian public sector.

Forgetting corruption: unlearning the knowledge of corruption in the Indonesian public sector

Purpose Based on the authors’ study, the main purpose of this paper is to ascertain a systematic long-term solution for the corruption problem in the Indonesian public sector from the knowledge management perspective. To achieve its objectives, this paper applies multiple perspectives and theories of corruption and knowledge management on the corruption problem in Indonesia. Design/methodology/approach This paper is based on the authors’ study to assess the corruption problem in the Indonesian public sector in the past decade through the examination of reports from various institutions and other relevant documents to highlight various behavioral issues in knowledge management in the Indonesian public sector and how they relate to corruption. Findings The authors establish that a major factor behind corruption’s ability to regenerate over time in the Indonesian public sector is the fact that it has become part of knowledge conversion in Indonesian public institutions for so long that removing it would be a very challenging task. To remove corruption from Indonesian public institutions is to remove it from the existing knowledge conversion spiral within these institutions by means of organizational unlearning and re-learning. The primary focus of the unlearning and re-learning process should be to eliminate the knowledge of corruption, in both tacit and explicit forms, and replace it with the knowledge of good governance, accountability and integrity. Through systematic organizational unlearning and re-learning along with other more repressive measures, the risk of corruption in public institutions in Indonesia will gradually diminish over time. Research limitations/implications This study is relying on documentary analysis to highlight the trend in behavioral problems in relation to knowledge conversion in the Indonesian public sector. Future studies should incorporate interviews with corruption offenders and local leaders to gain a more accurate view of how knowledge conversion plays its role in the growth and regeneration of corruption in the Indonesian public sector. Practical implications This paper contributes to the development of corruption eradication strategy by proposing a framework for systematically removing corruption knowledge from an organization. With this, framework resources can be allocated more effectively and efficiently to achieve the objectives of corruption prevention. Originality/value This paper highlights the importance of behavior-oriented approaches in mitigating corruption in the Indonesian public sector.

Sight beyond sight: Foreseeing corruption in the Indonesian government through behavioral analysis

Purpose The purpose of this paper, which is based on the author’s study, is to explore the potential use of behavioral analysis in predicting corruption among public officials in Indonesia as part of the corruption prevention measures. Design/methodology/approach This study examines major corruption cases in Indonesia in the past three years through reports from various institutions regarding fraud-related issues to gain a better understanding of corrupt leaders in Indonesia and how to predict their occurrence by means of observing and analyzing visible behavioral red flags. Findings The author establishes that in addition to the financial perspective, corruption can be detected and thus prevented by means of behavioral observation and analysis. The discussions in this paper suggest that bad leadership is a major cause of corruption in the Indonesian Government. However, a main reason corrupt leaders are elected into office is because the people failed to recognize them in the first place and accidentally voted for them. Among the signs of bad leadership visible enough for the people to see is the so-called “narcissism” which has four core dimensions: authority, self-admiration, superiority and entitlement. The four core dimensions are often visible in leader candidates in Indonesia which should have been early warning signs of bad leadership which may lead into, among others, corruption. Furthermore, the need for excessive compensation, exposure and power has been a common trait in many corruption offenders in Indonesia and each can be associated with the four core dimensions of narcissism. It is because of such a need that pressure/motivation to commit fraud among Indonesian public officials occurred. Society’s awareness of the signs of narcissism will help them decide who will become their future leaders and diminish the risk of corruption in the country. Research limitations/implications This study is self-funded. Therefore, due to the limited resources available, the discussions and analysis on visible behavioral red flags of corruption in this study are built upon secondary data from agencies such as the Corruption Eradication Commission (KPK), the Constitutional Court (MK), the Supreme Audit Board (BPK) and the election Supervisory Committee (Bawaslu). For future studies, primary data from the public regarding their opinions toward the past, present and future leadership in Indonesia will offer a more accurate view into visible behavioral red flags of corruption. Practical implications This paper contributes to the development of corruption prevention strategy in Indonesia by empowering the society to monitor potentially corrupt leaders so as to prevent them from controlling the country. Originality/value This paper demonstrates how the seemingly small and insignificant behavioral clues may become effective tools to predict and prevent the occurrence of corruption in the future.