Indonesian businesses take a stand against corruption in the land-based sector

Indonesia is known for its vast natural resources and diverse climate, placing it among the world's leading agricultural producers. The agribusiness industry is vital to the nation's economy, providing livelihoods for a large portion of the population and contributing significantly to its gross domestic product (GDP).


Beyond food security, the sector supports rural development, poverty reduction and export revenues. However, corruption has hindered the sector’s potential. The challenges posed by corruption vary across regions, with some areas facing more entrenched issues due to weaker enforcement mechanisms and limited resources. 


In response, the Global Compact Network Indonesia launched the Anti-Corruption Collective Action (ACCA) initiative in 2022, supported by the Siemens Integrity Initiative. This three-year program addresses corruption within the land-based sector, focusing on agribusinesses like palm oil.


Network Indonesia also played an active role at the B20 Indonesia Summit 2022, joining  the High-Level Public-Private Policy Dialogue on Promoting Transparency and Accountability. This dialogue reinforced Indonesia’s anti-corruption agenda, strengthened public-private partnerships and advanced key policies like B20’s Policy Action 2.3 and Indonesia’s National Strategy for Corruption Prevention. This engagement helped drive concrete action, including launching regional ACCA workshops targeting corruption risks in the agribusiness sector.

Josephine Satyono, Executive Director of Network Indonesia

"Collective Action is essential in tackling corruption. Too often, companies competing for tenders see fair competition as futile due to internal favouritism—an inherent conflict of interest. The same applies in agriculture, where middlemen demand excessive payments for what should be freely accessible. But when companies and business associations unite to reject these corrupt practices, enablers will think twice before engaging in misconduct."— Josephine Satyono, Executive Director of Network Indonesia, emphasized the importance of ACCA.


As part of ACCA’s effort, Network Indonesia organized focus group discussions with agribusiness stakeholders to assess corruption risks. 

These workshops uncovered regional differences in corruption risks: Jakarta-based businesses generally have clearer regulations and better governance structures, while remote provinces face challenges such as inconsistent enforcement and entrenched informal practices. These include weak local oversight, selective enforcement by authorities, limited access to information on regulatory procedures and reliance on informal payments or personal networks to expedite permits and resolve disputes.


To address regional disparities, Network Indonesia partnered with UNODC Indonesia and the Indonesian Corruption Eradication Commission (KPK) to organize targeted regional workshops. These aimed to support businesses in high-risk areas by fostering dialogue, strengthening compliance frameworks and promoting business integrity.

Following the workshops, Network Indonesia published a report highlighting key insights and regional challenges.

One participant, Michael Marcelino Resubun, Assistant Manager for Government Relations at PT Austindo Nusantara Jaya Tbk, a palm oil producer, shared how the workshop shifted his perspective on corruption risks. "I never considered certain minor actions corrupt," he noted. "This workshop helped me realize that even small, indirect actions can escalate into systemic corruption if left unchecked."

Beyond his professional role, Michael took the lessons further by engaging with youth in his local community. “Through my participation in last year's workshop, I was able to share important insights with these future leaders about the various forms of corruption and the necessity of addressing them collectively. I hope this helps them build a strong foundation of integrity as they pursue their future careers and roles,” he shared.

As Giman Santoso, Vice Chairman of the East Kalimantan chapters of both APINDO (Indonesian Employers Association) and KADIN (Indonesian Chamber of Commerce and Industry), noted, ‘’Anti-corruption discussions provide us with the tools and knowledge we need—no bribery, no money changing hands. If we work together, the country will be better.'”


The 2024 workshop results show significant progress: Most participating companies have now implemented anti-corruption programs, a clear improvement from the 2023 survey, where the average maturity score was just 1.9 out of 4. Notably, all companies in 2024 expressed willingness to engage in Collective Action—up from 52.2% in 2023.

At the conclusion of the workshop, 18 companies and five organizations signed the Anti-Corruption Collective Action Declaration, marking a significant step toward strengthening ethical business practices.


As these efforts grow, expanding anti-corruption initiatives across Indonesia will be crucial. The mining industry has expressed interest in similar workshops, underscoring the broader need for sector-wide integrity. 


Network Indonesia also leads non-sectoral initiatives such as the Business Ethics and Governance Working Group and the annual International Anti-Corruption Day events such as the Responsible Business Forum and CEO Breakfast. These platforms promote Collective Action and unite stakeholders to advance integrity and systemic change in business practices.