Indonesia

Background and Rationale

In 2015, the Maritime Anti-Corruption Network launched a collective action project in Indonesia with support from the UK Foreign and Commonwealth Office and in partnership with the NGO Kemitraan. Indonesia had been identified as a corruption hotspot among MACN member companies, and a key challenge faced was ambiguous laws and regulations. Illicit facilitation payments were common in Indonesian ports, including in-kind demands such as cigarettes, beverages, hospitality, and entertainment. Maritime companies refusing to pay or accommodate in-kind requests were often penalized through delays or by being fined for alleged noncompliance. Challenges like these motivated MACN to collectively take action to promote integrity and legal transparency in the Indonesian maritime sector.

MACN’s Strategy

MACN is supporting members to reject illicit demands in Indonesia, by developing practical guidance for members calling Indonesian ports that can be integrated into the company’s standard operating procedures. Our strategy is based on the following pillars:  

• Improve Transparency: Increase the transparency of public fees and tariffs, and port entry procedures in Indonesian ports by providing clear guidance on tariffs, fees, and procedures that apply during ship clearance. 
• Strengthen Accountability: Encouraging companies to use accountability mechanisms, by providing guidance on reporting mechanisms companies can use if charged an inaccurate tariff or requested to pay a bribe.  
• Data Sharing: Supporting companies to better prepare for port calls, by sharing data on common challenges and practices specific to the main ports in Indonesia. 

Outcomes and Impact

Through the initiative supported by the UK Foreign and Commonwealth Office from 2015 to 2017, MACN achieved the following:  

• Improved the transparency and private sector awareness of standard operating procedures for importing and exporting goods through Port Tanjung Priok.
• Upgraded the container tracking system to improve the transparency of container tracking and to limit human interaction when tracking goods in Port Tanjung Priok.
• Implemented ‘integrity champions’ training in partnership with Customs & Excise.
• Improved the dialogue between the private and public sectors on integrity issues, through multi-stakeholder dialogue and awareness-raising.