Detailed Information :

Indonesia

Year: 1999

Project Phase: Long-term Initiative

Participants:

• IBL was founded by business leaders of Rio Tinto Indonesia, Accenture and Ernst &Young.
• IBL Corporate Partners, which are the main corporate sponsors, now include global companies such as:
• BP,
• B&M Consultant (HHP),
• Coca Cola,
• DHL,
• ERM Indonesia,
• PricewaterhouseCoopers,
• Shell,
• Standard Chartered,
• McKinsey,
• Unilever,
• Nestlé,
• DuPont,
• Exxon Mobil Indonesia,
• Holcim.
• Corporate Partners also include Indonesian companies including Bogasari Flour Mills, PPM Institute of Management, Toba Pulp Lestari and Rajawali Group.

Scope:

• IBL is a not-for-profit foundation. A major aim of the foundation is to contribute towards the creation of sound and ethical business practices in the country.

Key Facts:

Description

• The Indonesian Business Links (IBL) was created as an offshoot of a multi-stakeholder discussion held during the World Bank Annual Conference in October 1998 in Washington DC.
• The International Business Leader Forum facilitated its creation in 1999. IBL encourages and assists corporations in Indonesia to implement CSR strategies and programs and to support SMEs.
• IBL partnered with the Indonesian Corruption Eradication Commission to conduct a national program to promote ethical business practices.

Objectives

• Encourage and assist corporations in Indonesia in implementing CSR strategies and programs;
• Promote ethical business practices among corporations in Indonesia;
• To be a catalyst for knowledge and skills transfer to SMEs;
• Support SMEs in developing income-producing activities;
• Achieve organizational sustainability.

Key Learning:

• IBL has become a champion in establishing public private partnerships aimed at promoting good governance and corporate social responsibility. To strengthen its good governance efforts, IBL partnered in 2005 with the Indonesian Corruption Eradication Commission (or Komisi Pemberantasan Korupsi - KPK). Together they conduct a national program to promote ethical business practices. IBL’s collaboration with KPK has strengthened its position as a leading advocate for good business practices in Indonesia.
• The mutual collaboration of IBL and KPK enhanced the credibility of the initiative and helped to establish trust among key stakeholders. As trust levels increased, IBL and KPK receive more support (financial and technical) from companies and civil society organizations.
• Significant support to scale up the Business Ethics program of IBL came from the Center for International Private Enterprise (CIPE), a donor agency from USA that provided financial resources.
• Several companies, such as Newmont Mining, BP, RAPP; KPC; Rio Tinto; Toba Pulp Lestari; PT PLN (electricity state owned company) and Indonesia Power (a subsidiary of PT PLN) joined the initiative.
• Indonesia Marketing Association (IMA), the largest marketing organization in Indonesia, supported a series of workshops in 2008.
• BL has delivered workshops on business ethics in eleven cities across the country since 1999. Over 1,200 people from various sectors have attended the workshops. IBL also implemented several media campaigns against corruption.
• Advocacy mechanisms also include mailing lists, radio air shows (broadcasted live to ten different cities across the country), talk shows and a comprehensive website at www.iblbusinessethics.info.
• IBL acts as a catalyst to encourage Small Medium Enterprises (SMEs) to develop business ethics code of conducts (CoC). Multinational Companies (MNC) share their corporate CoC with the SMEs and assist them with drafting CoCs for their SME. These draft CoCs are reviewed to comply with Indonesian Law.

Mechanisms:

• Cost: The Public Private Partnership model applied in IBL-Business Ethics program provides mechanism of cost sharing by the parties involved. KPK, as a state body, covers all expenses incurred for its representative in the program. CIPE, a donor covers operational cost while companies and IMA provide funds to cover other expenses such as cost for venues, meals and communication activities.

• Monitoring systems are established to monitor the initiative:

• KPK takes part in monitoring IBL’s Business Ethics mail group.
• CIPE receives financial and progress report from IBL on a weekly, quarterly and annually basis.
• Private Sector and IMA receive post-event financial and proceeding report.
• Participants or the public receives proceedings of workshop which are publicly shared on the IBL website at www.ibl.or.id and www.iblbusinessethics.info.
• Independent monitors were engaged to hold a third party observation over the business ethics impact. Their analysis showed that:
• Motivation has improved as well as the attitude of participants towards anti corruption
• The participants’ awareness on the Law on Anti-corruption has increased

Benefits:

• IBL’s Business Ethics program contributes to the dissemination of ethical business practices across Indonesia.
• From KPK point of view:

1. By partnering with IBK, KPK strengthened its advocacy campaigns on the Indonesian Law No. 31 year 1999 and Law No. 30 year 2002 on corruption crime eradication.
2. By partnering with IBL, KPK was able to access a powerful channel to voice its anti-bribery messages to the Indonesian business community

• From IBL point of view:

1. IBL partnership with KPK strengthens its position as the leading advocate of good corporate citizenship
2. IBL Corporate Partners have the opportunity to share their corporate code of conducts (CoC) to inspire the public hence raising companies profile

Click on the links below for more information :

• IBL
• IBL Business Ethics program
• KPK

Source:

• Indonesia Business Links secretariat