Introduction

The 2007 Global Economic Crime Survey conducted by PricewaterhouseCoopers (PwC) aimed to understand the types and frequency of economic crimes in leading organizations globally, including those in Indonesia. This report summarizes the key findings from the survey.

Detection Methods

Common Detection Methods in Indonesia

Internal audit: 27% of cases
Whistleblowing systems: 14.6%
Change of personnel/duties: 14.6%
External audit: 4.9%

Effective Global Detection Methods Not Reported as Effective in Indonesia

Corporate security
Audit committees
Rotation of staff
Electronic automated suspicious transaction report systems

The Fraud Control Paradox

Stronger controls may initially lead to a higher rate of detected economic crimes, but over time, the effectiveness of these controls depends on communication and understanding among employees. Companies should maintain a balance between control measures and employee trust to prevent unintended consequences.

Initial Detection in Indonesia

Common Initial Detection Methods in Indonesia

Whistleblowing systems: 14.6%
Internal audit: 19.5%
Change of personnel/duties: 2.4%
External tip-off: 2.4%

Economic Crime: People, Culture & Controls

The survey highlights the importance of people, culture, and controls in preventing economic crime. Companies should focus on creating a positive corporate culture that promotes transparency and trust among employees.

Conclusion

Overall, the report suggests that economic crimes are common in Indonesia, but detection methods can be improved by enhancing communication, understanding, and trust among employees.