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DGIP circular on anti-corruption efforts

A circular on anti-corruption efforts was sent to registered IP Consultants yesterday, by the
Directorate-General of Intellectual Property (“DGIP”).

Galang Aprilian, from the DGIP’s Directorate of Cooperation, distributed the notice by email to 736 registered IP Consultants.  The notice served to:

  • remind IP Consultant’s of the DGIP’s goal of building a culture of no tolerance for corrupt practices;
  • socialise newly issued Ministerial Regulation No. 15 of 2014 on addressing gratification in the Ministry of Law, which came into force on 10 June 2014; and
  • socialise newly issued Ministerial Decision No. MHH.0-1.HM.01.05 (16 June 2014) on the establishment of the Ministry of Law’s anti-gratficiation team.

The regulation makes for interesting reading.  While in the preamble describing a vision of freedom from all forms of corruption, collusion and nepotism it also includes a fairly broad scope of exceptions.  Gifts, vouchers and point rewards that are intended for common use (i.e. not for one specific officer only), and food and beverages are allowed - particularly relevant as we approach Lebaran where it is customary to exchange gifts with colleagues.  Payments to compensate for transport, accommodation and honorariums associated with attendance at seminars/workshops are also allowed, as are gifts at festive occasions (weddings, circumcisions, etc.) with a value of up to IDR1,000,000 (around USD85).

Also noteworthy are provisions requiring officers to report any gratification attempts, and applicable procedures.  If the the Ministry of Law’s anti-gratficiation team is given an appropriate operational budget, it may well turn out to be a force of change.  The KPK (Corruption Eradication Commission) has been praised for its anti-corruption efforts, but at the same time it is understood that the KPK will not address low level corruption, the likes of which has been identified as a problem at the DGIP.

Whatever the terms of this regulation and decision, Indonesia's anti-corruption law, the FCPA and the UK Bribery Act all demand a higher standard. Best to adopt a conservative approach.