A Week of Capacity Building and Discussion to Improve the Ease of Doing Business in West and Southwest Papua

The tropical forests of Papua represent the last significant tract of such forests in Indonesia, following extensive exploitation in Kalimantan, Sulawesi, and Sumatra. However, these forests face immense pressure due to policies prioritizing economic growth, making them vulnerable to corruption. The forestry sector's complex production chain, remote locations, tenurial conflicts, and insufficient monitoring exacerbate the risk of corruption, facilitating illegal logging and threatening sustainable land use, which can accelerate deforestation and climate change.

To address these challenges, GIZ Indonesia and ASEAN, through the Resilient Nature Cooperation Area implemented by Corruption Prevention in the Forestry Sector (CPFS) project, partnered with the Anti-Corruption Directorate of Business Entities (AKBU) at the Corruption Eradication Commission (KPK) to conduct a week-long Business Integrity Program in West Papua and Southwest Papua. This initiative aims to implement international environmental and anti-corruption standards among key stakeholders, particularly companies. This aligns with GIZ’s ambition to facilitate capacity and institutional development in the forestry sector through conservation, restoration, good governance, and sustainable forest management.

The program began with a visit to the Southwest Papua Forestry Services and a discussion with the Gas and Mineral Business Association to identify corruption vulnerabilities. Midweek, the CPFS project held a Business Integrity Training session in Manokwari on May 16, 2024, attended by 15 representatives from forestry and palm oil companies. This training aimed to enhance understanding of a Code of Ethics and the importance of whistleblowing systems in anti-corruption efforts, building on a previous session held in 2022.

Trainers Yanto Sidik Pratikno, an entrepreneur and anti-corruption expert, and Royani Lim, an ethics expert, led the course. They explained the broad definition of corruption, including non-bribery forms like facilitation gifts. "The definition of corruption is not only related to bribery; it has a broader definition and can vary slightly depending on place, culture, and customs," Pratikno said at the workshop. Lim highlighted how a well-implemented Code of Ethics can improve both external reputation and internal performance. Participants were guided in developing Codes of Ethics and whistleblowing systems, sharing their implementation experiences, and planning follow-ups. "The implementation of a code of ethics not only has an impact on external parties but can also improve reputation and performance within the company," Lim said.

The series concluded with meetings between the GIZ – CPFS project, AKBU, and various business associations. These sessions aimed to identify business challenges in the construction, forestry, and palm oil sectors, with KPK and CPFS committing to address these issues. Participants voiced concerns about extortion and permit obstructions leading to bribery, hoping for effective follow-up and support from KPK.

By focusing on integrity and anti-corruption measures, these efforts aim to protect Papua’s forests and promote sustainable development.

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