Indonesia Improves in Corruption Perceptions Index Ranking, But Graft Cases Remain Widespread

The index assesses "the degree to which corruption is perceived to exist among public officials and politicians" in 180 countries and territories across the globe. Although the CPI is a leading global indicator of public sector corruption, it needs to be emphasized that there is not a 100 percent accurate method to measure the degree of corruption in a country, simply because of the nature of corruption (namely that it is often hidden to the public eye). Nevertheless, the CPI is based on polls involving local experts and businesspeople, and because these locals tend to have a good sense of what is going on in the country in terms of corruption, the CPI ranking (as well as the development in the scores of a specific country over a period of time) do provide some meaningful and interesting insights into the matter.

Both Indonesia’s ranking (89^th) and score (38 points) in the 2018 Corruption Perception Index indicates that the country is perceived to have a high degree of corruption in the public sector. Although the index focuses on the public sector it is a fact that this sector often joins hands with the private sector in corruption cases (for example when a government official is bribed by a private company to obtain specific licenses or to win a tender).

This article discusses the following:

• The risks that are involved when having a high degree of corruption in society
• How corruption was decentralized too in the process of (political) decentralization in the post-Suharto era
• Big corruption cases in the past decade as well as several very recent ones

Read the full article in the March 2019 edition of our monthly research report. You can purchase the report by sending an email to info@indonesia-investments.com or a WhatsApp message to the following number: +62(0)8788.410.6944

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