Tuesday, June 7, 2011
Under the FCPA Microscope in Indonesia
A number of large multinational companies are allegedly under investigation for FCPA violations in Indonesia. That should not be a surprise. The United States and Indonesia have established cooperative arrangements to investigate bribery.
Indonesia's Corruption Eradication Commission ("KPK") has been a victim of its own success -- rival law enforcement agencies and a small number of businesses have launched challenges to KPK's authority and aggressive prosecution of corruption.
An FBI agent was quoted as stating that there are ongoing FCPA investigations in Indonesia. Another FBI agent stated that the FBI and the KPK are working closely, and share similar objectives and goals. The FBI and the KPK have an established cooperation agreement which allows information sharing and cooperative investigations.
The FBI agents would not disclose the names of the US companies being investigated but confirmed they were publicly traded in the United States.
The Justice Department has focused on bribery allegations in Indonesia involving tobacco, chemicals and communications firms. Indonesia ranks 110 on the corruption perception index.