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  • BEM FEB UGM Holds Workshop on “Corruption-Free Economy"

BEM FEB UGM Holds Workshop on “Corruption-Free Economy"

  • 21 October 2010, 09:18 WIB
  • By: Marwati
  • 16094
  • PDF Version


With the theme Fight against Poverty and Corruption, Student Executive Board of Faculty of Economics and Business (BEM FEB) UGM held a variety of activities to participate in the prevention of corruption practices in Indonesia. One of the activities is the Workshop Corruption-Free Economy by discussing the major theme Corruption-Free Economy, Prosperous Indonesia: Revisiting Institutional Corruption in Perspective of Economics and Business towards Prosperous Indonesia.


Discussing Modeling the Three Pillars of Combating Money Laundering and Corruption in Indonesia, Rimawan Pradiptyo saw that Indonesia’s Anti-Corruption Law has several weaknesses that must be scrutinized. The current law currently covers only criminal acts of corruption in the public sector and do not cover acts of corruption in the private sector. In addition, the Anti-Corruption Law does not regulate the post-corruption activity (money laundering) that is actually difficult to be separated from the corruption itself. "This law does not reach a wider scope, for instance money politics, elections of members of the House of Representatives, presidential election, legislative elections, Bribery Law and the Banking Law," he said.

Another weaknesses, he said, that the law pays little attention to the rationality of perpetrators/possible perpetrators of corruption. The inclusion of the maximum penalty would instead stimulate players/possible players to calculate the level of corruption that can generate profits. The inclusion of maximum penalties in the law makes the deterrent effects weaken over time as inflation in Indonesia is very high. "The higher the inflation, the lower the deterrent effect of fines. This makes the need for amendments to this Act more urgent," he explained.

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