While hard data oncorruption are difficult to collect,corruption inIndonesia is seen throughpublic opinion, collated throughsurveys as well as observation of how each system runs.[1]
Transparency International's 2024Corruption Perceptions Index, which scored 180 countries on a scale from 0 ("highly corrupt") to 100 ("very clean"), gave Indonesia a score of 37. When ranked by score, Indonesia ranked 99th among the 180 countries in the Index, where the country ranked first is perceived to have the most honest public sector.[2] For comparison with regional scores, the best score among the countries of the Asia Pacific region[Note 1] was 84, the average score was 44 and the worst score was 16.[3] For comparison with worldwide scores, the best score was 90 (ranked 1), the average score was 43, and the worst score was 8 (ranked 180).[4]
There are two key areas in the public sector in whichcorruption inIndonesia can be found. These are thejustice andcivil service sectors. Corruption within the justice sector is seen by its ineffectiveness to enforce laws, failure to uphold justice, hence undermining the rule of law. The areas of corruption within this sector include thepolice and thecourts. In the 2008 Public Sector Integrity Survey, the Supreme Court ranked the lowest in integrity in comparison to the other public services in Indonesia.[5] The courts were viewed to make decisions unfairly and have high unofficial costs.
Evidence of corruption within the civil service comes from surveys conducted within the sector. Some surveys found that almost half were found to have receivedbribes. Civil servants themselves admit to corruption.[6]
In January 2012, it was reported that Indonesia had lost as much as Rp 2.13 trillion (US$238.6 million) to corruption in 2011. A study conducted byIndonesia Corruption Watch, a non-profit organization coordinated by Danang Widoyoko, said thatembezzlement accounted for most of the money lost and that “government investment was the sector most prone tograft.”[7]
Companies are concerned aboutred tape and widespreadextortion in the process of obtaininglicences and permits, and they often face a demand for irregular fees orconcessions based on personal relationships when obtaininggovernment contracts. Companies have also reported regular demand for cash payments and expectations for gifts and special treatment by Indonesian officials.[8]
Corruption is an important development challenge that poseseconomic andsocial costs in Indonesia. Interference in public laws and policies for the sake of personal or private gain has weakened the competitiveness of Indonesia.[9]
About one-quarter ofministries suffer frombudgetary diversions in Indonesia. Households spent approximately 1% while enterprises spent at least 5% of monthly company revenue on unofficial payments. Social costs due to corruption in Indonesia include the weakening of government institutions and the rule of law.[6] Increases in crime due to smuggling and extortion involve the institutions that are supposed to be protecting citizens. The people who suffer most are the poor[10] as they are pressured to finance payments through their already tight budgets and the effectiveness of social services is less accessible indirectly. These concerns were voiced by the poor urban communities of Indonesia themselves in a joint World Bank-Partnership for Governance Reform research project, entitled “Corruption and the Poor”.[11]
Anti-corruption efforts began in Indonesia in the 1950s. There have been some efforts to battle corruption with the creation of the ombudsman and the Assets Auditing Commission (KPKPN).[12] It has been an important agenda and part ofIndonesia's official reform program since May 1998. However, the efforts made are questionable as there has been limited success in reducing corruption. Some obstacles that impeded the improvement of corruption included political and economic constraints, and the complex nature of the corruption itself.[13] Following strong criticism of corruption at the beginning of theNew Order regime in the late 1960s aCommission of Four was appointed by PresidentSuharto in 1970.[14] The report of the commission noted that corruption was "rampant" but none of the cases it said were in need of urgent action were followed up. Laws were passed in 1999 giving thepolice andprosecution service the authority to investigate corruption cases.
These efforts have taken the shape of ordering corrupt convicts to pay back all the money they have stolen.[15] On 6 March 2012, the Jakarta Corruption Court sentenced Ridwan Sanjaya, an official from theMinistry of Energy and Mineral Resources, to six years in prison for rigging a tender bid for ahome solar energy system project in 2009 worth IDR526 billion (US$57.86 million).
He was found guilty of accepting IDR 14.6 billion in kickbacks, resulting in IDR131 billion in state losses. TheCorruption Eradication Commission (KPK) stated that it will use Ridwan's verdict as material to develop the investigation on the graft scandal involving the Solar Home System project.[16]
High-profile corruption scandals involving major banks and financial corporations include theBank Bali scandal,BLBI case, theCentury Bank case, and theJiwasraya scandal.
Investigations into allegations of corruption against Indonesianformer president/dictatorSuharto began immediately after his 32-year rule. In theGlobal Transparency Report, made byTransparency International in 2004, he was ranked as the world's most corrupt leader. The report accused Suharto of causing losses ofUS$15–35 billion for the Indonesian government.[17]
Suharto headed several organizations during his rule, with various functions, including providingeducation,health, and support forveterans ofTrikora. All of these organizations were suspected of receiving illicit funds, which were embezzled from the state.[18]
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