Transparency International has released its Corruption Perceptions Index of 2013. This index assesses "the degree to which corruption is perceived to exist among public officials and politicians" in 177 countries around the world. Berlin-based and non-partisan Transparency International uses polls to determine perceived corruption in the selected countries. Indonesia rose four spots from 118 in last year's index to 114 in the 2013 edition but held the same score as last year (3.2 points).

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Relations between Indonesia and Australia have cooled considerably after it became known that Australia's Intelligence Service agency tried to follow telephone conversations of various high positioned Indonesian politicians as well as their inner circle, including President Susilo Bambang Yudhoyono, his wife Kristiani Herawati and vice-president Boediono, for 15 days in August 2009. This information became known a few days ago due to leaked documents by whistleblower Edward Snowden.

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On Friday (25/10), the World Bank released its 'Doing Business 2014' report in which it "ranks countries on their overall 'ease of doing business', and analyzes reforms to business regulation - identifying which economies are strengthening their business environment the most." In total 189 countries were analyzed. Indonesia, traditionally characterized by a complex and difficult investment environment, managed to climb 8 places in the ranking. Southeast Asia’s largest economy rose from number 128 to 120 in the 2014 edition.

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Indonesia's credentials in terms of corruption eradication received another blow when Akil Mochtar, the chief justice of Indonesia's Constitutional Court (Mahkamah Konstitusi), was detained by the country's Corruption Eradication Commission (KPK) on Wednesday evening (02/10). Allegedly, Mochtar accepted a bribe to influence the court's ruling on the Gunung Mas election dispute in Central Kalimantan. In this regional election, Hambit Bintih (together with Arton S. Dohong) was re-elected as district head of Gunung Mas.

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According to a new survey, the Democratic Party (Partai Demokrat), the political vehicle of president Susilo Bambang Yudhoyono, is increasingly losing popular support. The survey indicates that currently only 7.1 percent of respondents will vote for the Democratic Party in next year's legislative elections. The survey was conducted by the Center for Strategic and International Studies (CSIS) and involved 1,635 respondents from 31 provinces. In combination with results of earlier surveys in the last 12 months, it shows declining support for the party.

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Although it has been in the air for a while, the Corruption Eradication Commission (KPK) finally named Anas Urbaningrum, chairman of president Susilo Bambang Yudhoyono's Democratic Party (PD), a suspect in the Hambalang corruption case. This case, in which Anas is charged with accepting a bribe to ensure a contract, is the last in a series of blows to the Democratic Party, which has seen its popularity erode drastically in recent months.

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Today, the governor of the Riau province (on Sumatra), Rusli Zainal, was officially declared a suspect by the Corruption Eradication Board (KPK). Zainal is accused of taking bribes from the management of state-controlled Adhi Karya, a construction company, in exchange for a contract to build facilities for last year's National Games in Pekanbaru, the capital city of Riau. The KPK stated that they found convincing evidence to underpin its allegation.

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The corruption scandal which led to the resignation last week of Luthfi Hasan Ishak, chairman of the Prosperous Justice Party (PKS) - Indonesia's fourth-largest political party - is likely to make more victims in the party, and will put the Muslim-party in a negative light. The Corruption Eradication Commission (KPK) stated that the corruption scandal might involve more people within the PKS, including the party’s new chairman, Anis Matta and Agriculture minister Suswono.

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Today, most Indonesian newspapers opened with negative headlines concerning the country's political arena. In Indonesian politics, scandals - whether connected to corruption or other issues - are frequently reported and seriously undermine people's (both domestic and foreign) confidence in the nation's governance. In today's newspapers, three cases were center of attention and illustrate the problems within Indonesia's political elite.

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President Joko Widodo’s unexpected visit to the Indonesia Investment Coordinating Board (BKPM) on Tuesday (28/10) signals that the new president of Indonesia is serious about wiping out severe bureaucracy that causes time-consuming and difficult procedures to obtain permits, licenses and certificates in a bid to ease doing business in Indonesia for both foreign and domestic investors. Joko Widodo, popularly known as Jokowi, is eager to tackle the country’s ‘red-tape’ problem as it curtails the pace of economic growth in Indonesia.

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It took almost six hours for the Constitutional Court of Indonesia (Mahkamah Konstitusi) on Thursday (21/08) to read out 300 pages of a lengthy 4,392-page verdict in the case filed by defeated presidential candidate Prabowo Subianto, who claimed that the result of Indonesia’s July 2014 presidential election was invalid due to widespread violations and fraud that allegedly occurred during the voting and counting processes. During the read out it became increasingly clear that the court would reject Subianto’s claims due to a lack of evidence.

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At 14:00 pm local Jakarta time zone, Indonesia’s Constitutional Court (Mahkamah Konstitusi) is expected to announce its decision on Prabowo Subianto’s election result challenge. The defeated presidential candidate filed a court case claiming that massive fraud and violations took place amid the voting and counting processes in the context of Indonesia’s July 2014 presidential election, won by Joko Widodo (securing 53.15 percent of the votes). Although the court’s decision is final and legally binding, Subianto not expected to surrender yet.

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Former Deputy Governor of Indonesia's central bank (Bank Indonesia) Budi Mulya was sentenced to ten years imprisonment and a fine of IDR 500 million on Wednesday (16/07) after being found guilty of self-enrichment and corruption in connection to the government's USD $573 million bailout package for Bank Century in 2008 when, amid the global financial crisis, this bank was on the brink of collapse. However, many disagree that Bank Century was about to collapse as no deep analysis had been conducted on the financial condition of the bank.

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On Tuesday (29/04), Jakarta's Anti-Corruption Court sentenced Rudi Rubiandini, former Head of Indonesia's oil & gas regulator SKK Migas, to seven years in prison for money laundering and accepting bribes from Singapore-based Kernel Oil Pte Ltd and Indonesia-based Kaltim Parna Industri. These bribes were given in exchange for securing a win in an oil tender. In addition, Rubiandini was imposed a fine of IDR 200 million (or another three months in prison). Rubiandini was reported to not file an appeal to the court's verdict.

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The tax crime case which involves Bank Central Asia (BCA), Indonesia's largest lender by market value and the second-largest bank by assets, is not expected to have a significant impact on the performance of the shares of BCA. Earlier this week, Hadi Poernomo (Director General of taxation from 2002 to 2004) was questioned by Indonesia's Corruption Eradication Commission (KPK) on allegations of accepting bribes in exchange for tax exemptions - worth of IDR 375 billion (USD $32.8 million) - granted to BCA.

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Fitch Ratings, one of the three major global credit rating agencies, said that its latest annual survey on economic prospects and the business climate in Indonesia indicates an optimistic view. Respondents in the survey, mostly CEOs and Division Heads at financial institutions, companies, government and media, were asked 11 questions about the Indonesian economy, reformation and prospects for the next five years. Andrew Steel, Managing Director Head of Asia Pacific Corporate Ratings Group, presented results of the survey.

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With Indonesia's presidential election approaching (9 July 2014), investors - both domestic and foreign - have become more hesitant to commit to large investments, instead preferring to wait for the election results first. Obviously, investors want to see a 'market friendly' president to lead Southeast Asia's largest economy for (at least) the next five years; a ruler who can safeguard a conducive investment climate. For the Indonesian people, a just ruler is needed; one who can improve Indonesia's political and social issues.

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Mitsui & Co, one of the largest trading companies in Japan, believes that Indonesia is one of the most prospective investment destinations for the middle and longer term. After Brasil and Chile, Indonesia is currently the third-largest investment market for Mitsui & Co, which is part of the Mitsui Group. The latter has stakes in various sectors including energy, food, logistics and finance. The CEO of Mitsui & Co, Masami Iijima, stated that Indonesia is lucrative due to its large and young population as well as its rapidly expanding middle class.

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A survey released by The British Chamber of Commerce Indonesia (BritCham) showed that United Kingdom (UK) investors’ confidence on doing business in Indonesia in 2013 and 2014 dropped but is still positive overall. One hundred corporate and other members of BritCham, 95% of whom hold Senior Management posts, participated in this survey. The survey showed that 60% of the total respondents remained confident about their business in Indonesia, down from 83% in 2012, while the Ease of Doing Business score fell by 15% from 65% to 50%.

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