REPUBLIC OF

INDONESIA
Public Administration
Country Profile

Division for Public Administration and Development Management (DPADM)

Department of Economic and Social Affairs (DESA)
United Nations

February 2005

All papers, statistics and materials contained in the Country Profiles express entirely the opinion of the mentioned authors.
They should not, unless otherwise mentioned, be attributed to the Secretariat of the United Nations.

The designations employed and the presentation of material on maps in the Country Profiles do not imply the expression
of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country,
territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.
Table of Contents
Table of Contents........................................................................................... 1

Indonesia...................................................................................................... 2

1. General Information ................................................................................... 3

1.1 People.................................................................................................. 3
1.2 Economy .............................................................................................. 3
1.3 Public Spending ..................................................................................... 4
1.4 Public Sector Employment and Wages....................................................... 4
2. Legal Structure .......................................................................................... 5
2.1 Legislative Branch.................................................................................. 5
2.2 Executive Branch ................................................................................... 6
2.3 Judiciary Branch .................................................................................... 6
2.4 Local Government.................................................................................. 7
3. The State and Civil Society .......................................................................... 8
3.1 Ombudsperson ...................................................................................... 8
3.2 NGOs ................................................................................................... 8
3.3 Civil Society .......................................................................................... 8
4. Civil Service .............................................................................................. 9
4.1 Legal basis............................................................................................ 9
4.2 Recruitment .......................................................................................... 9
4.3 Promotion............................................................................................10
4.4 Remuneration ......................................................................................10
4.5 Training...............................................................................................11
4.6 Gender................................................................................................11
5. Ethics and Civil Service ..............................................................................12
5.1 Corruption ...........................................................................................12
5.2 Ethics..................................................................................................13
6. e-Government ..........................................................................................14
6.1 e-Government Readiness .......................................................................14
6.2 e-Participation ......................................................................................15
7. Links .......................................................................................................16
7.1 National sites .......................................................................................16
7.2 Miscellaneous sites................................................................................16

1
 INDONESIA
Indonesia
Click here for detailed map

Source: The World Factbook - Indonesia

Government type
Republic In March 1967, General
Soeharto was named
Independence President. Soeharto proclaim-
ed a "New Order" in Indo-
17 August 1945 (proclaimed); 27
nesian politics, and was
December 1949 (recognized by the
formally selected to 5-year
Netherlands)
terms as President from 1968
to 1998.
Constitution
August 1945, abrogated by Federal Consti- Amidst widespread civil
tution of 1949 and Provisional Constitution unrest caused in part by the
of 1950, restored 5 July 1959 (in brief) Asian financial and economic
crisis, Soeharto resigned on
Legal system May 21, 1998.
Based on Roman-Dutch law, substantially
modified by indigenous concepts and by Indonesia’s first elections in
new criminal procedures and election codes the post-Soeharto period
were held for the national,
Administrative divisions provincial, and sub-provincial
30 provinces, 2 special regions (Aceh, parliaments on June 7, 1999,
Yogyakarta), and 1 special capital city and again in 2004.
district (Jakarta Raya) Source: U.S. Dep't of State (Background Notes) -
Indonesia
Source: The World Factbook - Indonesia

2
 1. General Information

1
1.1 People Indonesia Malaysia Philippines
Population a

Total estimated population (,000), 2003 219,884 24,425 79,999

Female estimated population (,000), 2003 109,975 12,026 39,719
Male estimated population (,000), 2003 109,909 12,399 40,280
Sex ratio (males per 100 females), 2003 100 103 101
Average annual rate of change of pop. (%), 2000-2005 1.26 1.93 1.79
Youth and Elderly Population b

Total population under age 15 (%), 2003 30 33 36

Female population aged 60+ (%), 2003 9 7 6
Male population aged 60+ (%), 2003 7 6 5
Human Settlements c

Urban population (%), 2001 42 58 59

Rural population (%), 2001 58 42 41
Urban average annual rate of change in pop. (%), ‘00-‘05 3.59 2.86 3.19
Rural average annual rate of change in pop/ (%), ‘00-‘05 -0.63 0.07 -0.19
Education d

i
Total school life expectancy, 2000/2001 10 12.1 11 1

i
Female school life expectancy, 2000/2001 10.4 12.4 .. 1

Male school life expectancy, 2000/2001 9.6i 11.8 .. 1

Female estimated adult (15+) illiteracy rate (%), 2000 18.1ii 16.6iii 5.2ii 2

Male estimated adult (15+) illiteracy rate (%), 2000 8.2ii 8.6iii 4.9ii 2

Employment e

Unemployment rate (15+) (%), 2001 5.5iv 3.9v 9.8vi 1

vii v viii
Female adult (+15) economic activity rate (%), 2000 52 47 53 2

Male adult (+15) economic activity rate (%), 2000 85vii 83v 82viii 2

Notes: i 1994; ii
1990; iii
1991; iv
Month of May; v
Age 15-64; vi
Month of October; vii
1999; viii
2001

2
1.2 Economy Indonesia Malaysia Philippines
GDP a

GDP total (millions US$), 2002 172,911 95,157 77,076

GDP per capita (US$), 2002 817 3,915 964
PPP GDP total (millions int. US$), 2002 664,409 216,836i 321,495
PPP GDP per capita(int. US$), 2002 3,138 8,921i 4,022
Sectors b

Value added in agriculture (% of GDP), 2003 16.6 9.5 14.5

Value added in industry (% of GDP), 2003 43.6 48.6 32.3
Value added in services (% of GDP), 2003 39.9 41.9 53.2
Miscellaneous c

GDP implicit price deflator (annual % growth), 2003 6.6 3.5 3.7
Private consumption (% of GDP), 2003 65.6 43.7 72.3
Government consumption (% of GDP), 2003 9.2 13.9 11.4
Notes: i Estimate is based on regression; other PPP figures are extrapolated from the latest International Comparison Programme benchmark
estimates

1
United Nations Statistics Division:
a
Statistics Division and Population Division of the UN Secretariat; b Statistics Division and Population Division of the UN
Secretariat; c Population Division of the UN Secretariat; d1 UNESCO ; d2 UNESCO; e1 ILO; e2 ILO/OECD
2
World Bank - Data and Statistics:
a
Quick Reference Tables; b Data Profile Tables ; c Country at a Glance

3
1.3 Public Spending Indonesia Malaysia Philippines
Public expenditures 3

Education (% of GNP), 1985-1987 0.9i 6.9 2.1 a

Education (% of GNP), 1995-1997 1.4ii 4.9 3.4 a

Health (% of GDP), 1990 0.6 1.5 1.5

Health (% of GDP), 1998 0.8iii 1.4 1.6iii
Military (% of GDP), 1990 1.3 2.6 1.4 b

Military (% of GDP), 2000 1.1 1.9 1.2 b

Total debt service (% of GDP), 1990 8.7 9.8 8.1

Total debt service (% of GDP), 2000 12.2 6.7 9
i ii iii
Notes: Data refer to period other than that specified, Data refer to the ministry of education only; Data refer to central government only; 1999

1.4 Public Sector Employment and Wages

East Asia & Low income
..
Indonesia Indonesia Pacific group
Data from the latest year available average4
1991-1995 1996-2000 average4 average4
1996-2000
1996-2000 1996-2000
Employment
(,000) 1,283 1,539
Civilian Central Government5
(% pop.) 0.70 0.74 0.63 .. 0.46
(,000) 496 473.7
Sub-national Government5
(% pop.) 0.27 0.23 0.63 .. 0.46
(,000) 1,905 1,772
Education employees
(% pop.) 1.03 0.86 0.76 .. 0.91
(,000) 266 193.5
Health employees
(% pop.) 0.14 0.09 0.16 .. 0.62
(,000) .. 177
Police
(% pop.) .. 0.09 0.26 .. 0.30
(,000) 275 291
Armed forces
(% pop.) 0.15 0.14 0.53 .. 0.33
(,000) .. 975.6
SOE Employees
(% pop.) .. 0.49 1.18 .. 13.1
(,000) .. 5,422
Total Public Employment
(% pop.) .. 2.64 .. .. ..
Wages
Total Central gov't wage bill (% of GDP) 3.0 2.9 9.4 .. 5.4
Total Central gov’t wage bill (% of exp) 13.3 8.6 24.4 .. 24.7
Average gov't wage (,000 LCU) 2,952 3,245
Real ave. gov’t wage ('97 price) (,000 LCU) 4,040 3,245
Average gov’t wage to per capita GDP ratio 1.7 1.0 2.9 .. 4.4
Source: World Bank - Public Sector Employment and Wages

Click here further information on the Shape and Size of Public Employment.

3
UNDP - Human Development Report 2002
a
Data refer to total public expenditure on education, including current and capital expenditures.
b
As a result of a number of limitations in the data, comparisons of military expenditure data over time and across
countries should be made with caution. For detailed notes on the data see SIPRI (2001).
4
Averages for regions and sub regions are only generated if data is available for at least 35% of the countries in that
region or sub region.
5
Excluding education, health and police – if available (view Country Sources for further explanations).

4
2. Legal Structure

The Constitution in force in Indonesia dates from 1945 and has been amended four
times since 1998. The First Amendment altered the status and powers of the
President. The Second Amendment includes Chapter XA on human rights. The Third
Amendment enacted on 9 November 2001, inter alia, expands the powers of the
Supreme Court and provides for the establishment of a Constitutional Court and
Judicial Commission. The Fourth Amendment, adopted in August 2002, provides,
inter alia, for direct election of the President and Vice-President.
Source: UN OHCHR - Report of the Special Rapporteur (13 January 2003)

2.1 Legislative Branch

Unicameral House of Representatives or Dewan Perwakilan Rakyat (DPR) (550 seats; members serve five-
year terms)..6
women in parliament: 65 out of 550 seats: (12%).7

The new People's Consultative Assembly (Majelis Fact box:

Permusyawaratan Rakyat or MPR) has 678 members, consisting elections: last held 5
of the 550 members of the House of Representatives (Dewan April 2004 (next to be
Perwakilan Rakyat or DPR) and the 128 representatives of the held in April 2009)
newly-formed Regional Representative Council (Dewan election results: percent
Perwakilan Daerah or DPD), which includes four members from of vote by party - Golkar
21.6%, PDI-P 18.5%,
each of Indonesia’s 32 provinces. The 38 appointed seats
PKB 10.6%, PPP 8.2%,
previously reserved in the House of Representatives (DPR) for PD 7.5%, PKS 7.3%,
the armed forces have been phased out. PAN 6.4%, others
The People's Consultative Assembly (MPR) meets every five 19.9%; seats by party -
Golkar 129, PDI-P 109,
years to approve broad outlines of national policy and has yearly
PPP 58, PD 57, PAN
meetings to consider constitutional and legislative changes. The
53, PKB 52, PKS 45,
People's Consultative Assembly (MPR) does not formulate others 47
national policy.
The House of Representatives (DPR) convenes at least once a year. It serves a
legislative, budgetary, and supervisory function.8
The Regional Representative Council (DPD) is established pursuant to Article 22C of
the Constitution and based on Law No. 22 of 2003 on structure and status of the
People’s Consultative Assembly (MPR), the House of Representatives (DPR), the
Regional Representatives Council (DPD) and the Regional House of Representatives
(DPRD). The DPD consists of regional representatives of the provinces who are
elected through general elections. Electoral region for DPD members are the
provinces, and the amount of DPD members for members shall not exceed 1/3 (one
third) of the number of DPR members.9
The constitutionally mandated role of the House of Regional Representatives (DPD)
includes providing legislative input to the House of Representatives (DPR) on issues
affecting regions.
Source: Embassy of Indonesia (Germany) - Indonesia

6
Source of fact boxes if nothing else stated: The World Factbook - Indonesia
7
Inter-Parliamentary Union - Women in National Parliaments
8
Embassy of Indonesia (Germany) - State Organs
9
Embassy of Indonesia (Germany) - State Organs

5
2.2 Executive Branch

cabinet: Cabinet appointed by the president

elections: President and vice president were elected by direct vote of the citizenry.

In 2001 and 2002, the People's Consultative Assembly (MPR)

enacted laws to provide for the direct election, by popular vote, Fact box:
of the president and vice president. chief of state & head of
government: President
Only parties that gain at least 3% of the House of Susilo Bambang
Representatives (DPR) seats or 5% of the vote in national YUDHOYONO (since 20
legislative elections are eligible to nominate a presidential and October 2004) and Vice
vice presidential ticket. This provision requires that legislative President Muhammad
elections be held prior to the direct presidential election. Yusuf KALLA (since 20
October 2004)
To be elected a candidate needs a simple majority of the election results:
popular vote. With no one candidate receiving at least 50% of YUDHOYONO 60.6%;
the vote, a runoff election between the top two candidates are MEGAWATI 39.4%
held.
An People's Consultative Assembly (MPR) decree adopted in November 1998 limits
the president to two terms in office.
The president and the vice president were elected by popular vote for the first time
on September 20, 2004. Previously, the People's Consultative Assembly (MPR)
selected Indonesia’s president.
Source: U.S. Department of State (Background Notes) - Indonesia

The President executes his or her duties in compliance with the Guideline of the
State Policy as approved by the MPR.
Besides having executive power, the president also shares legislative power with the
House of Representative (DPR). In cooperation with the DPR, the President enacts
laws and prepares annual budget.
The President also has overall control of the armed forces. He or she makes all key
political appointments. All ministers, governors, ambassadors, and members of
judiciary owe their positions to the president.
Source: Commonwealth Advanced Seminar - Decentralization in the Post New Order Era of Indonesia (2003)

2.3 Judiciary Branch

Supreme Court or Mahkamah Agung (justices appointed by the president from a list of candidates approved
by the legislature); a separate Constitutional Court or Makhama Konstitusi was invested by the president on
16 August 2003; in March 2004 the Supreme Court assumed administrative and financial responsibility for
the lower court system from the Ministry of Justice and Human Rights.

There are three main pieces of legislation dealing generally with the judiciary:
Law 14/1970 concerning the Basic Principles of Judicial Power, Law 2/1986
concerning the General Judicial System, and Law 35/1999 on Amendment of Law
14/1970, which included a number of significant changes intended to bring about
greater independence of the courts.
Article 1 of Law 14/1970 provides that the judiciary is the independent power of the
State in administering justice to maintain law and justice based upon “Pancasila”, the
five principles governing the Indonesian State and society.

6
Article 10 of Law 14/1970 provides that the Supreme Court (Mahkamah Agung)
stands at the apex of the court system. Beneath the Supreme Court, there are four
branches of the judiciary – General Courts of Justice (Peradilan Umum), which
include the High Courts and the District Courts (app. 349 in total); Religious Courts
of Justice (Peradilan Agama), which include the Religious Court of Appeal and
Religious District Courts (app. 383 in total); Military Courts of Justice (Peradilan
Militer), which include the Military Court of Appeal (app. 31 in total); and
Administrative Courts of Justice (Peradilan Tata Usaha Negara), which include the
Administrative Court of Appeal (app. 27 in total). In addition, five new commercial
chambers within the General Courts of Justice have been established, as has a
taxation court.
Law 14/1970 provides that each branch of the judiciary is subject in organization,
administration and finance to the ministry in which its jurisdiction is primarily
concerned.
Article 31 of Law 14/1970 provides that judges are to be appointed and dismissed by
the President. This provision is further amplified by the subsequent law 2/1980,
which provides in article 31 that a judge is appointed and dismissed by the President
on the proposal of the Ministry of Justice in consultation with the Chief Justice of the
Supreme Court.
Act No. 24/2003 provides for the Constitutional Court, which was formally set up in
August 2003. The Court rules on the constitutionality of laws. The Constitutional
Court has 9 Justices appointed by Presidential Decree.10
As of February 2005, the Judicial Commission, provided for in Article 24B of the
Constitution, had not been set up.
Source: UN OHCHR - Report of the Special Rapporteur (13 January 2003) 11

2.4 Local Government

Regional government is stratified into two levels of autonomous regions: the
province and the district (the municipality or kotamadya for urban areas and the
regency or kabupaten for elsewhere).
District level is administratively stratified into two levels: kecamatan (sub-district)
and kelurahan for urban areas and desa or village for rural areas.
Each level is headed by a regional head: the governor for the province, the bupati for
the regency and the walikota for the municipality, the camat for the kecamatan, and
the lurah for the kelurahan and the kepala desa for the village. Previously, all
governor, bupati and walikota were also made representatives of the central
government in the regions. They were appointed and accountable to the central
government.
Under the new decentralization law, Law No. 22 of 1999, bupati and walikota only
serve as regional head. They are now elected by and accountable to local councils.
During the period of the New Order Administration, most development activities
taking place in the regions were carried out by the central government, and
therefore, all central departments had their field offices at the provincial and district
levels. In 2001, those regional offices were abolished and the functions were
transferred to the regions and performed by the provincial and district service units.
Source: Commonwealth Advanced Seminar - Decentralization in the Post New Order Era of Indonesia (2003)

10
Constitutional Court - Profile of the Constitutional Court
11
For further information on lower-level justice: World Bank (Indonesia) - Village Justice in Indonesia (February 2004)

7
3. The State and Civil Society

3.1 Ombudsperson
The National Ombudsmen Commission (click here) was established by presidential
decree in 2000. Its main focus is on maladministration of the Government and the
judiciary. In 2000, 35 per cent of the 1,723 complaints received related to the
functioning of the courts. In 2001, 45 per cent of its 511 cases related to the courts.
A draft law on the establishment of the Ombudsmen is currently (2002) before the
DPR and provides the Ombudsmen with the power to investigate and make
recommendations.
Source: UN OHCHR - Report of the Special Rapporteur (13 January 2003)

3.2 NGOs

Source: Institution - Title

3.3 Civil Society

Source: Institution - Title

8
4. Civil Service

All civil servants in Indonesia belong to the national civil service, although part are
recruited and administered by regional government (pegawai daerah). The new
decentralization law introduced in 1999 empowers regional governments to manage
civil servants working in the regions, including recruiting new staff and paying their
salaries, based on policies, standards and procedures set by the center.
Source: Commonwealth Advanced Seminar - Decentralization in the Post New Order Era of Indonesia (2003)

4.1 Legal basis

The civil service system is captured in Law No. 8 of 1974 and its revision of Law No.
43 of 1999. The civil service is managed by a national Civil Service Agency (Badan
Kepegawai Negri - BKN), which keeps all records, and has to give approval to all
appointments above a certain rank. All changes in the civil servant’s position have to
be confirmed by BKN.12
With the new Civil Service Law a heightened emphasis was placed on the duty of the
civil servant to “serve the public” as well as the state; the necessity to combat
corruption, collusion and nepotism was highlighted; recognition of the need for new
approaches to employment practices was given, requiring appointments and
promotions to be based on objective evaluation of performance and competitive
processes; and the need for salary reform was emphasized. An important aspect of
the new law was the prohibition on political party membership.
Source: University of Sydney - Public Sector Challenges and Government Reforms in South East Asia (2001)

The Ministry of Administrative Reform (MENPAN) is responsible for regulations

governing the administration of the country. It carries out this function largely
through policy pronouncements and ministerial decrees. BKN (Badan Kepegawaian
Nasional –National Civil Service Agency) is formally responsible for implementing
Law 8/1974 as amended by Law 43/1999 by issuing guidelines on hiring and firing
and promotions, and regulating the size of the civil service. The budget allocations of
the Ministry of Finance in effect determine the size of the civil service.13
Source: World Bank (Indonesia) - Combating Corruption in Indonesia (October 20, 2003)

A number of regulations administer the civil service. Click here for brief overview.

4.2 Recruitment
Civil servants are divided into four ranks from I (lowest) to IV, each with a basic
salary scale. Each rank is divided into four or five grades (a, b, c, etc), making a
total of 17 grades from Ia to IVe. Educational qualifications and seniority determine a
particular officer’s rank. A university degree is required to be in ranks III and IV.
Departmental positions are of two types: structural (general managerial jobs) and
functional (professional, technical jobs). All structural positions are grouped into
echelons, with echelon I the most senior. Training programs and examinations act as
barriers to promotion between each echelon. Functional positions are grouped into
48 families, based on professions (doctors, paramedics, lecturers and so on).

12
World Bank (Indonesia) - Shape and Size of Public Employment
13
It is believed that there are close to one million people who have informal contractual arrangements with the
Government, but who are not subject to civil service rules and do not appear on any government payrolls. It is also
believed that there are number of ghost workers on the payroll, some 10% of the total civil service.

9
BKN has overall responsibility for recruitment and promotion policy, and keeps
personnel records, issuing certificates of appointment and recording promotions. In
practice, departments and agencies have a high level of control over individual
personnel decisions within these constraints.
Source: University of Sydney - Public Sector Challenges and Government Reforms in South East Asia (2001)

4.3 Promotion
The system is a typical case of a closed career system, with seniority and periodic,
internally managed formal training playing a major role in advancement. The design
and conduct of the training courses and examinations required for advancement is
undertaken by the National Administration Institute (LAN).
The system of appointments and promotions in practice sees most staff advance
through a single agency. Performance appraisals are made and recorded for most
employers by their supervisors, recording judgments under headings such as
“loyalty”, “obedience” and “honesty”. Vacancies are not advertised across the
service. The supervisor puts forwards the names of suitable candidates along with
their CVs and an appraisal. An internal promotion board makes a selection, normally
without interview. Promotions at echelon II and below are effectively made within
each department or agency. Superiors exercise significant influence in this process,
enabling them to act as mentors and patrons, including bringing in selected outsiders
from other agencies. Individuals mostly learn of opportunities for promotion outside
their immediate division by being part of such personal networks.
Appointments to echelon 1 are made with the personal approval of the President (or,
in some cases, the Vice-President by delegation). These positions include the
Secretary General of each department, Directors General (maybe five or six in each
department) and heads of non-ministerial agencies. A high level selection board
(Baperjanas) is appointed, and reviews potential candidates, including probity
reports from the audit agency (BPKP). The names of at least three candidates are
forwarded to the President for final selection. Senior appointments are thus subject
to close political supervision, even if they are in the vast majority of cases from
inside the service.
Source: University of Sydney - Public Sector Challenges and Government Reforms in South East Asia (2001)

4.4 Remuneration
Civil servants are paid according to rank, seniority, and position. The pay scales
according to rank include several elements: a base wage, a family allowance, a
children’s allowance, a food allowance, and some other incidental allowances. Since
the crisis, pay increases have also been given in the form of an allowance, not in the
form of an increased base wage. In addition to the base wage and allowances, many
positions either have a functional allowance, or a structural allowance. These
allowances can for some positions be significantly larger than the other pay
elements. For instance, a Rank IV, Echelon Ia received Rp. 1,150,000 in base wage
and allowances in 2000, but Rp. 4,5 million in structural allowances per month.
There has long been a general perception that Indonesia’s civil service was
underpaid. After heavy pay increases over a couple of years, the average civil
servant no longer seems to be underpaid compared to Indonesia’s private sector.
All civil servants are paid from the central budget--either through the central
allocation for personnel (DIK), or through the Subsidi Daerah Otonom or SDO grant
to the regions. Both DIK funds and SDO funds are first transferred to the regional

10
treasury offices (KPKNs). For central and deconcentrated units, representatives of
these units deliver a full list of civil servants working in their unit to the KPKN each
month, together with proof of any material change that affects the wage bill
(promotion, marriage, etc.). The KPKNs check their correctness—although they have
no independent source of information, and upon approval, transfer the appropriate
amount of money to the (commercial) bank account of the work unit. The Finance
section in the work unit takes care of payment. For higher-level staff this is
increasingly done by direct deposit of the payroll in an individual civil servant’s
account, but for most staff it is still done in cash.
World Bank (Indonesia) - Shape and Size of Public Sector Employment (2000)
See also: World Bank (Indonesia) - "Does Indonesia have a 'low-pay' Civil Service (June 2001)

4.5 Training
The training and leadership preparation normally provided by the internally
conducted training programs in LAN, and in the training arms of departments and
agencies, are focused on assessing and developing personal qualities, knowledge of
the rules and procedures, practical office administration, use and application of new
office technology and the understanding of legal and ideological frameworks relevant
to current civil service employment and functions. The programs tend to reinforce
formalism and conformity more
than develop leadership and management skills. Typical of a career service system,
departments and agencies expend considerable resources on providing staff with the
opportunity to prepare themselves for crossing each of the hurdles required to rise
through the ranks. Large departmental and provincial training establishments and
programs jealously guard their independence and resist efforts at coordination or
rationalization. There is considerable unevenness in quality and effectiveness, as is
to be expected in such an environment.
Source: University of Sydney - Public Sector Challenges and Government Reforms in South East Asia (2001)

4.6 Gender

Source: Institution - Title

11
 5. Ethics and Civil Service

5.1 Corruption
2003 CPI Score relates to perceptions of the degree of corruption as seen by
business people and country analysts and ranges between 10 (highly clean) and 0
(highly corrupt).

Corruption Perceptions Index

90 percent
2003 CPI Surveys Standard High-Low Number
confidence
Score Used Deviation Range Inst.
range
Rank Country
1 Highly clean 9.7 8 0.3 9.2 - 10.0 4 9.5 - 9.9
122 Indonesia 1.9 13 0.5 0.7 – 2.9 9 1.7 – 2.2
133 Highly corrupt 1.3 8 0.7 0.3 - 2.2 6 0.9 - 1.7
Source: Transparency International - Corruption Perceptions Index 2003

Surveys Used: Refers to the number of surveys that were used to assess a country's performance. 17 surveys were
used and at least 3 surveys were required for a country to be included in the CPI.
Standard Deviation: Indicates differences in the values of the sources. Values below 0.5 indicate agreement, values
between 0.5 and c. 0.9 indicate some agreement, while values equal or larger than 1 indicate disagreement.
High-Low Range: Provides the highest and lowest values of the sources.
Number Institutions: Refers to the number of independent institutions that assessed a country's performance. Since
some institutions provided more than one survey.
90 percent confidence range: Provides a range of possible values of the CPI score. With 5 percent probability the score
is above this range and with another 5 percent it is below.

Two recent surveys confirm that corruption in the civil service is viewed as a serious
problem. In 1999/2000 the Institute for Policy and Community Development Studies
(IPCOS), conducted a survey of 692 public officials (52 heads of agencies/ or
departments, and 640 officials) from 15 Indonesian agencies. The second survey of
households, business enterprises and public officials, conducted in 2001 by the
Partnership for Governance Reform, had as its principal goal understanding
perceptions and attitudes to corruption. In both surveys, a large majority of public
officials viewed corruption as a serious problem--94% of those surveyed in
1999/2000 and 71% of those surveyed in 2001. Further, when asked to rate
accountability in their organizations, officials in the 2000 survey were willing to rate
it at only one on a scale of 10.
In a recent report on intensification and acceleration of the fight against corruption,
the Ministry of Administrative Reform (MENPAN) has come up with a long list of
causes of corruption. Factors internal to the civil service include weak sanctions,
inconsistent law enforcement, inadequate discipline, lack of internal controls, the
failure of superiors to set a good example and o f those in positions o f authority to
subject themselves to clear tests of their performance, and low income in relation to
what it costs to maintain a decent living standard.
External factors include inadequate external controls by the public and by
parliament, lack of clarity in regulations, the culture of gift giving, the social norms
and permissive behavior of society.
Indonesia’s four million civil servants are subject to Law 8/1974, subsequently
amended in the post-Soeharto period under Law 43/1999. The law is quite brief and
relies on the issuance of regulations that define principles and procedures. The

12
practices of KKN (corruption, collusion and nepotism) are forbidden, and all
appointments and promotions are to be based on an objective evaluation of
performance and competence and undertaken through competition.
Indonesia has one unified national career civil service despite its current
decentralized structure. Law 22/1999 on decentralization allows regional
governments to manage their own establishments and staffing provided that they
follow centrally defined policies and guidelines. Under President Wahid, Regulations
96- 101/2000 were promulgated, covering personnel policy, structural and functional
positions.
Civil servants are also now prohibited from being members of political parties. This
constitutes a radical change from the Soeharto period when the civil service,
represented by the Association of Civil Servants (Korps Pegawai Republik Indonesia-
KORPRI), was one of the three pillars of the Golkar party of government, along with
a civilian wing and the armed forces.
Source: World Bank (Indonesia) - Combating Corruption in Indonesia (November 12, 2003)

5.2 Ethics

Source: Institution - Title

13
 6. e-Government

e-Government 6.1 e-Government Readiness

Readiness Index:
The index refers to the e-Government Readiness Index
generic capacity or
aptitude of the public
sector to use ICT for
0.6
encapsulating in public
services and deploying 0.5
to the public, high
quality information 0.4
(explicit knowledge) and
effective communication 0.3
tools that support
human development.
0.2
The index is comprised
of three sub-indexes: 0.1
Web Measure Index,
Telecommunications
0
Infrastructure Index and

a
Human Capital Index.

ar

am
R

nd
a
sia

s
si

ne
di

PD

nm

ila
ay

N
e

bo

pi
on

a
ya
al

et
o

ilip
am

Th
La

M
d

Vi
M
In

Ph
C

Web Measure Index:

Source: United Nations – World Public Sector Report 2003
A scale based on
progressively
sophisticated web
services present.
Coverage and
sophistication of state- Web Measure Index Telecom. Infrastructure Index Human Capital Index
provided e-service and
e-product availability
correspond to a 1
numerical classification.
0.9
0.8
Telecommunications 0.7
Infrastructure Index: 0.6
A composite, weighted
average index of six 0.5
primary indices, based 0.4
on basic infrastructural
0.3
indicators that define a
country's ICT infra- 0.2
structure capacity. 0.1
Primary indicators are:
PC’s, Internet users,
0
online population and
a

ar

am
R

nd
a
sia

s
si

ne
di

PD

nm

ila
ay

N
e

Mobile phones.
bo

pi
on

a
ya
al

et
o

ilip
am

Th
La

Secondary indicators
M
d

Vi
M
In

Ph
C

are TVs and telephone

lines.
Source: United Nations – World Public Sector Report 2003

Human Capital Index:

A composite of the adult literacy rate and the combined primary, secondary and tertiary gross enrolment ratio, with two thirds of the weight
given to adult literacy and one third to the gross enrolment ratio.

14
e-Participation
Index:
6.2 e-Participation e-Participation Index
Refers to the willing-
ness, on the part of
the government, to 0.7
use ICT to provide
high quality informa- 0.6
tion (explicit know-
ledge) and effective 0.5
communication tools
0.4
for the specific
purpose of empower-
0.3
ring people for able
participation in 0.2
consultations and
decision-making both 0.1
in their capacity as
consumers of public 0
services and as

es

nd

am
a

ar
a
si

PD
di

si

in
nm

la
ne

ay
citizens.

N
bo

pp

ai
o

et
do

ya
al
am

Th
La

i li

Vi
M

M
In

Ph
C

e-information: Source: United Nations – World Public Sector Report 2003 d

The government
websites offer
information on
policies and
programs, budgets,
e-information e-decision making e-consultation
laws and regulations,
and other briefs of 20
key public interest.
18
Tools for dissemi-
nating of information 16
exist for timely access
and use of public 14
information, including 12
web forums, e-mail
lists, newsgroups and 10
chat rooms.
8

6
e-decision making:
4
The government
indicates that it will 2
take citizens input 0
into account in
a

ar

nd

am
es
a

decision making and

si
di
si

PD

in

la
ay
ne

N
bo

pp

ai

provides actual
o

ya

et
al
do

am

Th
La

ili
M

Vi
M
In

feedback on the
Ph
C

outcome of specific
issues. Source: United Nations – World Public Sector Report 2003 d

e-consultation:
The government website explains e-consultation mechanisms and tools. It offers a choice of public policy topics online for discussion with
real time and archived access to audios and videos of public meetings. The government encourages citizens to participate in discussions.

15
 7. Links

7.1 National sites

Authority Topic
Government links [Link]

People's Consultative Assembly (MPR) [Link]

House of Representatives (DPR) [Link]

Constitutional Court [Link]

Ombudsman [Link]

Central Bureau of Statistics [Link]

7.2 Miscellaneous sites

Institution Topic
Asian Development Bank (ADB) [Link]
Development Gateway [Link]
European Union (EU) [Link]
United Nations in Indonesia [Link]
United Nations Development Programme (UNDP) [Link]
UNPAN [Link]
World Bank (WB) [Link]

16