Indonesia and Corruption: A Parasitical Dynasty

Περίληψη

This paper critically analyzes the deep-rooted and systematic corruption plaguing Indonesia, likening its spread to an unstoppable disease originating from the top. Through an empirical and historical lens, the research demonstrates how this pervasive issue has continuously grown in scale, frequency, and intricacy, severely damaging the nation's reputation and deterring investment. Specific cases are examined, including the Century Bank bailout, Jiwasraya fraud, BLBI misuse, PT Timah's illegal mining, the ongoing Pertamina scandal, and the eFishery startup forgery. These incidents underscore how corruption, embedded within state-owned enterprises and beyond, leads to colossal state losses and erodes public confidence. Furthermore, the paper highlights significant impediments to investment, particularly the rampant "premanisme ormas" (thuggery by community organizations). Driven by unemployment and political ties, these groups engage in intimidation and extortion, causing investment cancellations and escalating operational costs. The scarcity of law enforcement exacerbates this issue, fostering impunity. Coupled with Indonesia's protracted and ambiguous legal processes, these factors paint a picture of a business environment where corruption is not merely isolated but a systematic challenge. This environment, characterized by a lack of predictability and reliability, profoundly undermines Indonesia's appeal as a secure investment hub, effectively stifling its immense economic potential.