The rise of Kortastipikor: Indonesia's new anti-corruption body and what it means for business | Hogan Lovells

At the end of his term, President Joko Widodo (Jokowi) established the Corruption Eradication Police Force (Korstatipikor), marking a significant change in Indonesia's fight against corruption. This new anti-corruption unit within the Indonesian National Police was officially inaugurated on December 9, 2021 and is part of broader efforts to strengthen the role of the police in handling corruption cases. The creation of Kortastipikor comes at a time when corruption remains a pervasive problem in Indonesia and reflects the police's growing ambition to take a more proactive stance in combating corruption-related crimes.

Role and responsibilities of Kortastipikor

Kortastipikor's main responsibilities include preventing, investigating and prosecuting corruption cases, just like its counterparts, the Komisi Pemberantasan Korupsi (KPK) and the Attorney General's Office (AGO). With the establishment of this unit, the police are expected to complement the work of the KPK and the AGO by more assertively fighting corruption at the local level and focusing on issues that do not necessarily fall within the jurisdiction of the KPK , who usually handles large-scale cases. case.

The new police anti-corruption corps is structured into several divisions that focus on corruption prevention, inter-agency cooperation and law enforcement. The creation of the Kortastipikor demonstrates the intention to strengthen the involvement of the police in the investigation and prosecution of corruption, an area in which it has always been considered less active than the KPK and the AGO.

Public reception and reviews

Despite the positive discourse surrounding its creation, Kortastipikor's creation was met with skepticism. Critics question whether the police, who have been seen as lagging behind in anti-corruption efforts, can actually have a significant impact in the fight against corruption. The KPK has long been the main institution handling major corruption cases, and the AGO has also played an active role in corruption prosecutions. On the other hand, the police's record on corruption is less transparent and less well received by the public.

One of the main concerns is that Kortastipikor could overlap with roles already carried out by the KPK and the AGO, leading to bureaucratic inefficiencies rather than strengthening anti-corruption efforts. Furthermore, the police's historical involvement in corruption-related scandals has raised doubts about its ability to independently and effectively handle corruption cases within its own ranks.​

However, the creation of the Kortastipikor is also seen by the government as recognition of the need for the police to play a more active role in the fight against corruption. If properly executed, the formation of this body could improve the overall corruption prevention and enforcement framework in Indonesia by increasing coordination between the three main institutions responsible for fighting corruption.

Implications for companies, especially foreign subsidiaries

The establishment of Kortastipikor has significant implications for businesses operating in Indonesia, especially for subsidiaries of foreign companies. As police take a more assertive role in investigating corruption cases, companies will likely face increased scrutiny of their business practices and compliance with Indonesia's anti-corruption laws.

In the past, the KPK and the AGO have conducted high-profile investigations into corruption in the private and public sectors. With Kortastipikor now in place, police will likely be more involved in investigating local corruption cases, and businesses will need to be aware of the possibility of greater police involvement in compliance investigations.

Corruption remains a pervasive problem in Indonesia, and foreign companies must remain vigilant and ensure they comply with local laws and regulations. The involvement of multiple institutions, including the KPK, the AGO and now the Kortastipikor, means that the companies could be subject to investigations by various law enforcement agencies, each with their own mandate and its own directions.

The future of fighting corruption in Indonesia

Although public opinion remains skeptical about the potential effectiveness of Kortastipikor, its creation represents an important development in Indonesia's anti-corruption framework. The police, with the Kortastipikor in place, are signaling their intention to play a more proactive role in the fight against corruption. This could lead to more coordinated efforts between the police, the KPK and the AGO, which, if properly managed, could strengthen the fight against corruption.

In the coming years, Indonesian businesses should expect increased police involvement in corruption-related cases. The creation of the Kortastipikor marks a shift in the way corruption investigations can be conducted, with the police likely to play a more central role alongside the KPK and the AGO. As a result, businesses must remain diligent in their compliance efforts, especially as law enforcement begins to become more assertive in this area.

Conclusion

The establishment of Kortastipikor at the end of President Jokowi's term highlights Indonesia's ongoing fight against corruption. Despite initial concerns about its effectiveness and potential overlap with existing institutions, the new anti-corruption body could prove to be a vital part of the country's evolving anti-corruption landscape. For businesses, particularly foreign subsidiaries, this development highlights the need for increased vigilance and compliance with anti-corruption regulations, as police become more involved in combating corruption and bribery. wine in Indonesia.