The troubling impact of political interference in Indonesian public sector institutions on ethical leadership credibility

• Published in: International journal of public leadership 2022-09, Vol.18 (4), p.319-336
• Main Authors: Eryanto, Dedy, van Eeden Jones, Iris, Lasthuizen, Karin
• Format: Article
• Language: English
• Subjects: Bribery; Business ethics; Conflicts of interest; Corporate culture; Corruption; Credibility; Cultural values; Developing countries; Employees; Ethics; Executives (Business); Industrialized nations; Institutions; LDCs; Leadership; Mass media; Nepotism; Police corruption; Political leadership; Politicians; Public buildings; Public sector; Violations
• ISSN: 2056-4929; 2056-4929
• DOI: 10.1108/IJPL-10-2021-0056

PurposeThis study investigates the impact of political interference on the capacity to combat corruption within Indonesian public sector institutions. It analyses the troubling impact of politicians in strategic leadership positions in public institutions and the impact this has on its ethical leadership credibility.Design/methodology/approachA qualitative multi-method approach was followed. Firstly, media publications were analysed to describe typical cases of corruption by political and public leaders and to evaluate the current state of the country. Secondly, the authors studied the selection and appointment processes for strategic leadership in two types of leading Indonesian public sector institutions based on laws and regulations and critical (media) publications to assess the problem of political interference. Lastly, the authors used insights from 42 face-to-face interviews within one leading public institution to understand the problem of political interference and its impact on ethical leadership credibility in Indonesia.FindingsWhen politicians are appointed in strategic leadership positions of public institutions, including CEOs, the board of directors and commissioners, the downside is that such political support causes a conflict of interest that seriously threatens the independent functioning of public institutions and the ethical reputation of the public sector as a whole. The influence of specific Indonesian cultural values and norms only reinforces these ethical challenges in building public sector integrity.Originality/valueMost empirical studies on ethical leadership focus on middle managers and the impact of ethical leadership on organisational outcomes. In addition, little is yet known about the effectiveness of ethical leadership in developing countries. This study attempts to address this gap and analyses the troubling role of politicians in strategic leadership positions in Indonesia's public institutions and the impact this has on its ethical leadership credibility.