Corruption in Indonesia

There are two key areas in the public sector in which corruption in Indonesia can be found. These are the justice and civil service sectors. While hard data on corruption is difficult to collect, corruption in Indonesia is clearly seen through public opinion, collated through surveys as well as observation of how each system runs.^[1] 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 the police and the courts. In the 2008 Public Sector Integrity Survey, the Supreme Court ranked the lowest in integrity in comparison to the other public services in Indonesia.^[2] The courts were viewed to make decisions unfairly and have high unofficial costs.

Businessmen believe that the Indonesian police handle the most bribes in the country.^[3] Being harassed by the police is a common occurrence. Corruption in the police system is rampant and even institutionalized in certain aspects. For example, brokers not functioning within Jakarta’s motor vehicle and driving license offices charge almost one and half times the official price, while reducing the time needed to receive the license.

Evidence of corruption within the civil service comes from surveys conducted within the sector. Some surveys found out that almost half were found to have received bribes. Civil servants themselves admit to corruption.^[1]

Economic and social costs

Corruption is an important development challenge which should be tackled as it poses economic and social costs in Indonesia. Interference in public laws and policies for the sake of personal or private gain has weakened the competitiveness of Indonesia^[4] Other effects include misallocated talent and might lead to lower quality of infrastructure and public services. There have been about one-quarter of ministries which suffer from budgetary diversions in Indonesia. Household 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.^[1] Increase in crime due to smuggling and extortion involve the institutions that are supposed to be protecting citizens. There would be a loss of trust of the government. The people who suffer most are the poor ^[5] as they are pressured to finance payments through their already tight budgets and the effectiveness of social services are less accessible indirectly. These concerns were the voices of the poor urban communities of Indonesia themselves in a joint World Bank-Partnership for Governance Reform research project, entitled “Corruption and the Poor”.^[6]

Efforts to curb corruption

There have been some efforts to battle corruption with the creation of the ombudsman and the Assets Auditing Commission (KPKPN).^[7] It has been an important agenda and part of Indonesia's official reform program since May 1998. However, the efforts made are questionable as there has been limited success to reduce corruption. Some obstacles that impeded the improvement of corruption included political and economic constraints, and the complex nature of the corruption itself.^[8]

See also

Corruption Eradication Commission

References

1. ^ ^{a b c} Lateef, S. et al; Combating Corruption in Indonesia, World Bank East Asia Poverty Reduction and Economic Management Unit 2003 Full text
2. ^ (Komisi Pemberantasan Korupsi, Integritas Sektor Publik Indonesia Tahun 2008: Fakta Korupsi dalam Layanan Publik, (Jakarta: Direktorat Penelitian dan Pengembangan Komisi Pemberatasan Korupsi, 2009), pg 10.)
3. ^ http://www.thejakartapost.com/news/2009/01/22/survey-police-most-corrupt-institution-tii.html
4. ^ Vinay Kumar Bhargava, E. P. (2004). Challenging corruption in Asia: case studies and a framework for action. World Bank Publications.
5. ^ Mauro, P. (1997). Why Worry About Corruption?
6. ^ Hardjono, R. a. (2002). The Poor Speak Up; 17 Stories of Corruption, Partnership for Governance .
7. ^ Stephen Sherlock, Combating Corruption in Indonesia? The Ombudsman and the Assets Auditing Commission, Volume 38, Issue 3, December 2002, pages 367-383
8. ^ Natasha Hamilton-Hart. ANTI-CORRUPTION STRATEGIES IN INDONESIA Bulletin of Indonesian Economic Studies, Vol.37, No 1,2001: 65-82.