1. Indonesia in Perspective’s Study Case Corruption in IndonesiaCauses of CorruptionLesson Learned

2. Indonesia in Perspective’s Study Case Corruption in IndonesiaCauses of CorruptionLesson Learned Overview Extent of Corruption Forms of Corruption The Most Affected Sector

3. Overview. After the fall of General Suharto, Indonesia has underground a successful transition from authoritarian rule to become one of the largest democracies in Asia and in the world. Even the local government has been empowered and the judiciary has been granted greater independence and a national campaign again corruption has been initiated, corruption is still a major problem in Indonesia. OverviewExtent of CorruptionForms of Corruption The Most Affected Sector

4. Extent of Corruption. All available data and country reports indicate that corruption remains widespread, permeating all levels of society. Recent anti – corruption efforts such as the establishment of strong anti corruption agency have led to conviction of several high – ranking public officials, but lack of institutional capacity and weak rule of law combine with poor regulatory quality still create fertile grounds for corruption. The situation reflected in the major worldwide government indicators, Indonesia ranked 100 out of 183 countries assessed by Transparency International's Corruption Perceptions Index (CPI) on scale 3 out of 10 (10 is highly clean). OverviewExtent of CorruptionForms of Corruption The Most Affected Sector

5. Forms of Corruption. Both bureaucratic and grand corruption are present in Indonesia. Bureaucratic is exacerbated by Indonesia’s weak administrative capacity, low salaries and the lack of oversight. In this context bureaucratic and administrative forms of corruption are widespread across all public services and agencies. OverviewExtent of CorruptionForms of Corruption The Most Affected Sector

6. The Most Affected Sector. The police sector, according to the Indonesia Corruption Perception and Bribery Index, 48 % of the respondents confess that they have bribes the police. The judiciary, similarly to the police 52 % of Indonesians surveyed in the global Corruption Barometer perceive that the judiciary is corrupt. Parliament and Political Parties are also perceived as highly corrupt according to the Indonesians statement in the latest Global Corruption Barometer survey for 52 %. OverviewExtent of CorruptionForms of Corruption The Most Affected Sector

7. Indonesia in Perspective’s Study Case Corruption in IndonesiaCauses of CorruptionLesson Learned Theoretically Main Causes

8. Theoretically Studies have shown a correlation between corruption and low GDP, inequality of income, inflation and lack of competition. A few scholars have developed theoretical models, Nye (1967) and Rose – Ackerman (1999) highlighting that corruption is the result of the equilibrium between resources and cost, balancing potentials benefits against costs and consequences. In 1998 Klitgaard defines corruption with a formula : “Corruption = Rent + Direction – Accountability”. TheoreticallyMain Causes

9. Main Causes : Structural Factors. Often let the lower level employee to handle important task such as income levels, income inequality, openness to trade and long exposure to democracy.. Historical Factors. Indonesia passed through many years of authoritarian regime when Suharto ruled the country surrounded by networks of patrons and clients. In exchange for support Suharto ensured that his relatives, friends, partner or family were granted benefits. inadequate. TheoreticallyMain Causes

10. Main Causes : Decentralization. Scholars have also found that the form of decentralization may also affect levels of corruption. Empowering the local governments are also to ensure that the local government has enough money to do their services, which is tend to corruption. Quality of Business Regulations. There is also a strong correlation between regulatory and corruption. Higher regulatory leads to lower level of corruption. TheoreticallyMain Causes

11. Main Causes : Public Sector Wages. People tend to try corruption to get more money when they not satisfied with their wages. Judiciary. Bribes are often paid to influence prosecutions convictions, sentencing in civil and criminal case National Resources. Studies have also found that abundance of natural resources may be a cause of corruption it creates rent – seeking where law enforcement mechanism are inadequate. TheoreticallyMain Causes

12. Indonesia in Perspective’s Study Case Corruption in IndonesiaCauses of CorruptionLesson Learned Conclusion Question and Answer Credits

13. Conclusion. The existing institutions seems incapable due to lack of political will, qualified personnel will enforce the rules in place at all levels. In Order to prevent and combat corruption accountability and transparency should be enhanced. Similarly important, it is to reform the political system as to strengthen the country’s democracy, ensuring, for instance, that the role money has been playing in politics does not distort the political process. In addition a well functioning judiciary is a pre – requisite for ending the culture of impunity reigns in the country. Finally, a culture shift – from clientelism to universalism is instrumental in allowing such reforms to be implemented fully and rapidly. Conclusion Question and Answer Credits

14. Q & A Conclusion Question and Answer Credits

15. This presentation is belong to group # 13 : Natasya Sakinah Irma Yunita Rudy Rachmadi Conclusion Question and Answer Credits