INSTITUTIONAL WORK FOR CORRUPTION IN INDONESIAN PUBLIC BUDGETING AND PROCUREMENT
Abstract
This paper examines how institutionalized corruption in public institutions is planned and executed within Indonesia's formal budgeting process. It explores how key corrupt actors secure procurement projects well before the actual budgeting process takes place. Additionally, this paper seeks to highlight how a network of corruption, involving significant actors from parliament, government, and corporations, is organized. Drawing on data from court examination records, court judgments, and newspapers, we synthesize the experiences of corrupt actors and witnesses within the corrupt network. Conceptually informed by the institutional work perspective, this article analyzes a major scandal in Indonesia's budgeting and procurement, the e-ID procurement scandal, and supported by several smaller cases. We illustrate how corrupt practices are embedded in budgeting procedures and find that bribery and gift-giving play a crucial role in the creation and planning of corrupt activities. The implications of our findings for anti-corruption initiatives are also discussed.
References
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Benavides, A. D. (2006). Transparency and Public Administration in Mexico: How the Enactment of a Law Is Changing Culture. Journal of Public Affairs Education, 12(4), 461–477. Retrieved from http://www.jstor.org/stable/40215755
Berger, P. L., & Luckmann, T. (1991). The Social Construction of Reality: A Treatise in the Sociology of Knowledge. Penguin Books Limited. Retrieved from https://books.google.co.uk/books?id=rGg9mT_JNIEC
Castro, A., & Ansari, S. (2017). Contextual “Readiness” for Institutional Work. A Study of the Fight Against Corruption in Brazil. Journal of Management Inquiry, 105649261769688. https://doi.org/10.1177/1056492617696887
Cooper, D. J., Dacin, T., & Palmer, D. (2013). Fraud in accounting, organizations and society: Extending the boundaries of research. Accounting, Organizations and Society, 38(6–7), 440–457. https://doi.org/10.1016/J.AOS.2013.11.001
Courtois, C., & Gendron, Y. (2017). The “Normalization” of Deviance: A Case Study on the Process Underlying the Adoption of Deviant Behavior. AUDITING: A Journal of Practice & Theory, 36(3), 15–43. https://doi.org/10.2308/ajpt-51665
Covaleski, M. A., & Dirsmith, M. W. (1988). The use of budgetary symbols in the political arena: An historically informed field study. Accounting, Organizations and Society, 13(1), 1–24. https://doi.org/10.1016/0361-3682(88)90023-2
Cyert, R. M., & March, J. G. (2013). A Behavioral Theory of the Firm. Martino Publishing. Retrieved from https://books.google.co.uk/books?id=9PydngEACAAJ
Dearden, J. A., & Husted, T. A. (1990). Executive budget proposal, executive veto, legislative override, and uncertainty: A comparative analysis of the budgetary process. Public Choice, 65(1), 1–19. https://doi.org/10.1007/BF00139288
De Renzio, P., & Krafchik, W. (2007). Lessons from the Field The Impact of Civil Society Budget Analysis and Advocacy in Six Countries Practitioners Guide. Washington, DC. Retrieved from https://www.internationalbudget.org/wp-content/uploads/Lessons-from-the-Field-The-Impact-of-Civil-Society-Budget-Analysis-and-Advocacy-in-Six-Countries.pdf
DiMaggio, P. J., & Powell, W. W. (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. American Sociological Review, 48(2), 147. https://doi.org/10.2307/2095101
Funnell, W. (2011). Keeping secrets? Or what government performance auditors might not need to know. Critical Perspectives on Accounting, 22(7), 714–721. https://doi.org/10.1016/J.CPA.2010.02.007
Goodman, D. (2007). Determinants of perceived gubernatorial budgetary influence among state executive budget analysts and legislative fiscal analysts. Political Research Quarterly, 60(1), 43–54. https://doi.org/10.1177/1065912906298816
Grossi, G., & Pianezzi, D. (2016). The new public corruption: Old questions for new challenges. Accounting Forum. https://doi.org/10.1016/j.accfor.2016.05.002
Hoffman, A. J. (1999). Institutional evolution and change: Environmentalism and the U.S. chemical industry. Academy of Management Journal, 42(4), 351–371. https://doi.org/10.2307/257008
Lauth, T. P. (1987). Budgeting and productivity in state government: Not integrated but friendly. Public Productivity Review, 10(3), 21–32.
Lawrence, T., & Suddaby, R. (2006). Institutions and Institutional Work. In S. Clegg, C. Hardy, T. Lawrence, & W. Nord (Eds.), The SAGE Handbook of Organization Studies (2nd ed., pp. 215–254). London: SAGE Publications. https://doi.org/10.2307/591759
Lawrence, T., Suddaby, R., & Leca, B. (2009). Institutional Work: Actors and Agency in Institutional Studies of Organizations. Cambridge University Press. Retrieved from https://books.google.co.uk/books?id=bhzKZWpMSREC
Lawrence, T., Winn, M. I., & Jennings, P. D. (2001). THE TEMPORAL DYNAMICS OF INSTITUTIONALIZATION. Academy of Management Review, 26(4), 624–644. https://doi.org/10.5465/AMR.2001.5393901
Ledeneva, A. V. (1998). Russia’s Economy of Favours: Blat, Networking and Informal Exchange. Cambridge University Press. Retrieved from https://books.google.co.uk/books?id=lnIJngEACAAJ
Lehman, G., & Morton, E. (2017). Accountability, corruption and social and environment accounting: Micro-political processes of change. Accounting Forum, 41(4), 281–288. https://doi.org/10.1016/j.accfor.2017.10.004
Mauss, M., & Guyer, J. I. (2016). The Gift. HAU Books. Retrieved from https://books.google.co.uk/books?id=SxQ3rgEACAAJ
Meyer, J. W., & Rowan, B. (1977). Institutional organizations: Formal structures as myth and ceremony. American Journal of Sociology, 83, 340–363. https://doi.org/10.2307/2778293
Morales, J., Gendron, Y., & Guénin-Paracini, H. (2014). The construction of the risky individual and vigilant organization: A genealogy of the fraud triangle. Accounting, Organizations and Society, 39(3), 170–194. https://doi.org/10.1016/j.aos.2014.01.006
Nelson, J. S. (2017). The Corruption Norm. Journal of Management Inquiry. https://doi.org/10.1177/1056492616675415
Neu, D., Everett, J., Rahaman, A. S., & Martinez, D. (2013). Accounting and networks of corruption. Accounting, Organizations and Society, 38(6–7), 505–524. https://doi.org/10.1016/j.aos.2012.01.003
Numerato, D. (2016). Corruption and public secrecy: An ethnography of football match-fixing. Current Sociology, 64(5), 699–717. https://doi.org/10.1177/0011392115599815
Porta, D. (2017). Corrupt Exchanges: Actors, Resources, and Mechanisms of Political Corruption. Taylor & Francis. Retrieved from https://books.google.co.uk/books?id=kCIxDwAAQBAJ
Powell, W. W., & DiMaggio, P. J. (1991). The New Institutionalism in Organizational Analysis. University of Chicago Press. Retrieved from https://books.google.co.uk/books?id=jbTbAgAAQBAJ
Premchand, A. (1993). Public Expenditure Management. INTERNATIONAL MONETARY FUND. Retrieved from https://books.google.co.uk/books?id=Gqkz7cGG9JsC
Ríos, A. M., Bastida, F., & Benito, B. (2016). Budget Transparency and Legislative Budgetary Oversight: An International Approach. American Review of Public Administration, 46(5), 546–568. https://doi.org/10.1177/0275074014565020
Sargiacomo, M., Ianni, L., D’Andreamatteo, A., & Servalli, S. (2015). Accounting and the fight against corruption in Italian government procurement: A longitudinal critical analysis (1992-2014). Critical Perspectives on Accounting, 28, 89–96. https://doi.org/10.1016/j.cpa.2015.01.006
Schuchter, A., & Levi, M. (2015). Beyond the fraud triangle: Swiss and Austrian elite fraudsters. Accounting Forum, 39(3), 176–187. https://doi.org/10.1016/j.accfor.2014.12.001
Scott, J. C. (1972). Patron-Client Politics and Political Change in Southeast Asia. The American Political Science Review, 66(1), 91–113. https://doi.org/10.2307/1959280
Scott, W. R. (2013). Institutions and Organizations: Ideas, Interests, and Identities (4th ed.). London: Sage Publications. Retrieved from https://books.google.co.uk/books?id=qSxHAAAAMAAJ
Sikka, P., & Lehman, G. (2015). The supply-side of corruption and limits to preventing corruption within government procurement and constructing ethical subjects. Critical Perspectives on Accounting, 28, 62–70. https://doi.org/10.1016/j.cpa.2015.01.008
Suhardiman, D., & Mollinga, P. P. (2017). Institutionalized corruption in Indonesian irrigation: An analysis of the upeti system. Development Policy Review, 35(S2), O140–O159. https://doi.org/10.1111/dpr.12276
Taussig, M. T. (1999). Defacement: Public Secrecy and the Labor of the Negative. Stanford University Press. Retrieved from https://books.google.co.uk/books?id=An0rotfFr9kC
To, P. X., Mahanty, S., & Dressler, W. (2014). Anthropological Forum Social Networks of Corruption in the Vietnamese and Lao Cross-Border Timber Trade Social Networks of Corruption in the Vietnamese and Lao Cross-Border Timber Trade. Anthropological Forum, 0. https://doi.org/10.1080/00664677.2014.893505
Torsello, D., & Venard, B. (2016). The Anthropology of Corruption. Journal of Management Inquiry, 25(1), 34–54. https://doi.org/10.1177/1056492615579081
Wehner, J. (2004). Back from the sidelines? Redefining the contribution of legislatures to the budget cycle. World Bank Institute Discussion Paper, 1–27. Retrieved from http://siteresources.worldbank.org/EXTPARLIAMENTARIANS/Resources/Back_from_the_Sidelines_Joachim_Wehner.pdf
Benavides, A. D. (2006). Transparency and Public Administration in Mexico: How the Enactment of a Law Is Changing Culture. Journal of Public Affairs Education, 12(4), 461–477. Retrieved from http://www.jstor.org/stable/40215755
Berger, P. L., & Luckmann, T. (1991). The Social Construction of Reality: A Treatise in the Sociology of Knowledge. Penguin Books Limited. Retrieved from https://books.google.co.uk/books?id=rGg9mT_JNIEC
Castro, A., & Ansari, S. (2017). Contextual “Readiness” for Institutional Work. A Study of the Fight Against Corruption in Brazil. Journal of Management Inquiry, 105649261769688. https://doi.org/10.1177/1056492617696887
Cooper, D. J., Dacin, T., & Palmer, D. (2013). Fraud in accounting, organizations and society: Extending the boundaries of research. Accounting, Organizations and Society, 38(6–7), 440–457. https://doi.org/10.1016/J.AOS.2013.11.001
Courtois, C., & Gendron, Y. (2017). The “Normalization” of Deviance: A Case Study on the Process Underlying the Adoption of Deviant Behavior. AUDITING: A Journal of Practice & Theory, 36(3), 15–43. https://doi.org/10.2308/ajpt-51665
Covaleski, M. A., & Dirsmith, M. W. (1988). The use of budgetary symbols in the political arena: An historically informed field study. Accounting, Organizations and Society, 13(1), 1–24. https://doi.org/10.1016/0361-3682(88)90023-2
Cyert, R. M., & March, J. G. (2013). A Behavioral Theory of the Firm. Martino Publishing. Retrieved from https://books.google.co.uk/books?id=9PydngEACAAJ
Dearden, J. A., & Husted, T. A. (1990). Executive budget proposal, executive veto, legislative override, and uncertainty: A comparative analysis of the budgetary process. Public Choice, 65(1), 1–19. https://doi.org/10.1007/BF00139288
De Renzio, P., & Krafchik, W. (2007). Lessons from the Field The Impact of Civil Society Budget Analysis and Advocacy in Six Countries Practitioners Guide. Washington, DC. Retrieved from https://www.internationalbudget.org/wp-content/uploads/Lessons-from-the-Field-The-Impact-of-Civil-Society-Budget-Analysis-and-Advocacy-in-Six-Countries.pdf
DiMaggio, P. J., & Powell, W. W. (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. American Sociological Review, 48(2), 147. https://doi.org/10.2307/2095101
Funnell, W. (2011). Keeping secrets? Or what government performance auditors might not need to know. Critical Perspectives on Accounting, 22(7), 714–721. https://doi.org/10.1016/J.CPA.2010.02.007
Goodman, D. (2007). Determinants of perceived gubernatorial budgetary influence among state executive budget analysts and legislative fiscal analysts. Political Research Quarterly, 60(1), 43–54. https://doi.org/10.1177/1065912906298816
Grossi, G., & Pianezzi, D. (2016). The new public corruption: Old questions for new challenges. Accounting Forum. https://doi.org/10.1016/j.accfor.2016.05.002
Hoffman, A. J. (1999). Institutional evolution and change: Environmentalism and the U.S. chemical industry. Academy of Management Journal, 42(4), 351–371. https://doi.org/10.2307/257008
Lauth, T. P. (1987). Budgeting and productivity in state government: Not integrated but friendly. Public Productivity Review, 10(3), 21–32.
Lawrence, T., & Suddaby, R. (2006). Institutions and Institutional Work. In S. Clegg, C. Hardy, T. Lawrence, & W. Nord (Eds.), The SAGE Handbook of Organization Studies (2nd ed., pp. 215–254). London: SAGE Publications. https://doi.org/10.2307/591759
Lawrence, T., Suddaby, R., & Leca, B. (2009). Institutional Work: Actors and Agency in Institutional Studies of Organizations. Cambridge University Press. Retrieved from https://books.google.co.uk/books?id=bhzKZWpMSREC
Lawrence, T., Winn, M. I., & Jennings, P. D. (2001). THE TEMPORAL DYNAMICS OF INSTITUTIONALIZATION. Academy of Management Review, 26(4), 624–644. https://doi.org/10.5465/AMR.2001.5393901
Ledeneva, A. V. (1998). Russia’s Economy of Favours: Blat, Networking and Informal Exchange. Cambridge University Press. Retrieved from https://books.google.co.uk/books?id=lnIJngEACAAJ
Lehman, G., & Morton, E. (2017). Accountability, corruption and social and environment accounting: Micro-political processes of change. Accounting Forum, 41(4), 281–288. https://doi.org/10.1016/j.accfor.2017.10.004
Mauss, M., & Guyer, J. I. (2016). The Gift. HAU Books. Retrieved from https://books.google.co.uk/books?id=SxQ3rgEACAAJ
Meyer, J. W., & Rowan, B. (1977). Institutional organizations: Formal structures as myth and ceremony. American Journal of Sociology, 83, 340–363. https://doi.org/10.2307/2778293
Morales, J., Gendron, Y., & Guénin-Paracini, H. (2014). The construction of the risky individual and vigilant organization: A genealogy of the fraud triangle. Accounting, Organizations and Society, 39(3), 170–194. https://doi.org/10.1016/j.aos.2014.01.006
Nelson, J. S. (2017). The Corruption Norm. Journal of Management Inquiry. https://doi.org/10.1177/1056492616675415
Neu, D., Everett, J., Rahaman, A. S., & Martinez, D. (2013). Accounting and networks of corruption. Accounting, Organizations and Society, 38(6–7), 505–524. https://doi.org/10.1016/j.aos.2012.01.003
Numerato, D. (2016). Corruption and public secrecy: An ethnography of football match-fixing. Current Sociology, 64(5), 699–717. https://doi.org/10.1177/0011392115599815
Porta, D. (2017). Corrupt Exchanges: Actors, Resources, and Mechanisms of Political Corruption. Taylor & Francis. Retrieved from https://books.google.co.uk/books?id=kCIxDwAAQBAJ
Powell, W. W., & DiMaggio, P. J. (1991). The New Institutionalism in Organizational Analysis. University of Chicago Press. Retrieved from https://books.google.co.uk/books?id=jbTbAgAAQBAJ
Premchand, A. (1993). Public Expenditure Management. INTERNATIONAL MONETARY FUND. Retrieved from https://books.google.co.uk/books?id=Gqkz7cGG9JsC
Ríos, A. M., Bastida, F., & Benito, B. (2016). Budget Transparency and Legislative Budgetary Oversight: An International Approach. American Review of Public Administration, 46(5), 546–568. https://doi.org/10.1177/0275074014565020
Sargiacomo, M., Ianni, L., D’Andreamatteo, A., & Servalli, S. (2015). Accounting and the fight against corruption in Italian government procurement: A longitudinal critical analysis (1992-2014). Critical Perspectives on Accounting, 28, 89–96. https://doi.org/10.1016/j.cpa.2015.01.006
Schuchter, A., & Levi, M. (2015). Beyond the fraud triangle: Swiss and Austrian elite fraudsters. Accounting Forum, 39(3), 176–187. https://doi.org/10.1016/j.accfor.2014.12.001
Scott, J. C. (1972). Patron-Client Politics and Political Change in Southeast Asia. The American Political Science Review, 66(1), 91–113. https://doi.org/10.2307/1959280
Scott, W. R. (2013). Institutions and Organizations: Ideas, Interests, and Identities (4th ed.). London: Sage Publications. Retrieved from https://books.google.co.uk/books?id=qSxHAAAAMAAJ
Sikka, P., & Lehman, G. (2015). The supply-side of corruption and limits to preventing corruption within government procurement and constructing ethical subjects. Critical Perspectives on Accounting, 28, 62–70. https://doi.org/10.1016/j.cpa.2015.01.008
Suhardiman, D., & Mollinga, P. P. (2017). Institutionalized corruption in Indonesian irrigation: An analysis of the upeti system. Development Policy Review, 35(S2), O140–O159. https://doi.org/10.1111/dpr.12276
Taussig, M. T. (1999). Defacement: Public Secrecy and the Labor of the Negative. Stanford University Press. Retrieved from https://books.google.co.uk/books?id=An0rotfFr9kC
To, P. X., Mahanty, S., & Dressler, W. (2014). Anthropological Forum Social Networks of Corruption in the Vietnamese and Lao Cross-Border Timber Trade Social Networks of Corruption in the Vietnamese and Lao Cross-Border Timber Trade. Anthropological Forum, 0. https://doi.org/10.1080/00664677.2014.893505
Torsello, D., & Venard, B. (2016). The Anthropology of Corruption. Journal of Management Inquiry, 25(1), 34–54. https://doi.org/10.1177/1056492615579081
Wehner, J. (2004). Back from the sidelines? Redefining the contribution of legislatures to the budget cycle. World Bank Institute Discussion Paper, 1–27. Retrieved from http://siteresources.worldbank.org/EXTPARLIAMENTARIANS/Resources/Back_from_the_Sidelines_Joachim_Wehner.pdf
Published
2024-12-05
How to Cite
WINARDI, Rijadh Djatu.
INSTITUTIONAL WORK FOR CORRUPTION IN INDONESIAN PUBLIC BUDGETING AND PROCUREMENT.
SAR (Soedirman Accounting Review) : Journal of Accounting and Business, [S.l.], v. 9, n. 02, p. 160 - 179, dec. 2024.
ISSN 2598-0718.
Available at: <https://jos.unsoed.ac.id/index.php/sar/article/view/13189>. Date accessed: 21 feb. 2025.
doi: https://doi.org/10.32424/1.sar.2024.9.02.13189.
Section
Articles
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