Clashes have occurred between the police and the military as a result of military personnel providing security for illegal private enterprises.Īccording to our assessment, an inter-ministerial oversight team tasked with reviewing military cooperatives and foundations has been assessed by Human Right's Watch as having 'no clear authority over the Indonesia armed forces or its businesses, lacking independence, no requirements to report publicly on its progress, and no deadline to complete its work. There is also evidence of military involvement in illicit economic activity, such as drug trafficking. Legal military-owned businesses continue due to legislative loopholes whereby companies are still owned by military-controlled foundations and co-operatives. The military is estimated to control a significant portion of the country’s licit and illicit economy. Government reforms aimed at dismantling the military’s business empire began in 2004 and were resumed again in 2010, though these efforts have not yet been fully effective and there is evidence of private enterprise at all levels of the military.
To reduce corruption risk and continue to build integrity, security sector reforms are urgently needed across the following areas: Scrutiny and active enforcement of military owned businesses Indonesia GI ranking in Band D places it in the high risk of corruption category but this is an increase on the 2013 result.