What is Conflict of Interest?

Definition of Conflict of Interest

Conflict of interest is a situation where there is a conflict of interest for someone who uses his / her position and authority (either intentionally or unintentionally) for personal, family or group interests so that the mandated task cannot be carried out objectively and has the potential to cause harm.

Forms of Conflict of Interest

Several forms of conflicts of interest can be recognized as follows:

1. Receiving gratuities or giving / receiving gifts for a decision / position;
2. Using State property and / or position for personal / group interests;
3. Using confidential information about position for personal / group interests;
4. Provide special access to certain parties without following the proper procedures;
5. In the process of supervision and guidance, they do not follow procedures because of the influence and / or expectations of the supervised party;
6. Working outside the main job against the law;
7. Providing more than specified information, privileges or opportunities in a way against the law for prospective providers of goods / services;
8. Policies from employees who take sides due to influence, close relationships, dependence and / or gratification;
9. Granting permission and / or approval from discriminatory employees;
10. Employee appointment based on close relationship / remuneration / recommendation / influence from other employees;
11. Selection of partnerships by employees based on unprofessional decisions;
12. Commercialization of public services;
13. Conducting supervision that is not in accordance with established norms, standards and procedures because of the influence and / or expectations of the supervised party;
14. Become part of the parties who have an interest in something being assessed
15. Being subordinate to the party being assessed;

Sources of Conflict of Interest

Various things can be a source of conflict of interest, including:

1. Abuse of authority, namely by making decisions or actions that are not in accordance with the objectives or exceeding the limits on the granting of authority granted by laws and regulations;
2. Dual positions, namely employees holding two or more public positions so that they cannot carry out their positions in a professional, independent and accountable manner other than those stipulated in the prevailing laws and regulations;
3. Affiliate relationship, namely the relationship that an employee has with certain parties, whether due to blood relations, marital relations or friendship relations that can influence his decision;
4. Gratification, which is giving in a broad sense covering the provision of money, goods, rebates, commissions, interest-free loans, travel tickets, lodging facilities, tour trips, free medical treatment and other facilities;
5. Weaknesses of the organizational system, namely conditions that become obstacles to the achievement of the objectives of exercising employee authority due to the existing organizational structure and culture;
6. Personal interests, namely the desires / needs of employees regarding something that is personal in nature.

Prevention

Regarding the handling of conflicts of interest, there are several basic principles:

1. In carrying out their duties and functions, each employee within the Ministry of Industry is required to:
   1. Based on applicable laws and regulations, policies and standard operating procedures (SOP);
   2. Based on professionalism, integrity, objectivity, independence, transparency and responsibility;
   3. Do not include elements of personal or group interests;
   4. Not affected by affiliation;
   5. Creating and fostering an organizational culture that is intolerant of conflicts of interest.
2. Every employee within the Ministry of Industry must refrain from attitudes, behaviors and actions that may result in a conflict of interest.
3. Every time there is a conflict of interest, employees within the Ministry of Industry are obliged to:
   1. Disclose events or situations of conflict of interest experienced and / or known to the assignor and / or direct supervisor and / or the Head of the Work Unit;
   2. Do not participate in related decision making;
   3. Resign from the related assignment.
4. Heads of Work Units and their direct superiors must adequately control and handle conflicts of interest.

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