Business Corruption in Indonesia

Indonesia's business environment suffers from widespread political corr uption and weak enforcement of anti-corruption legislation. The efficiency of business operations is restricted by a corrupt judiciary, complicating the process of dispute settlement and weakening property rights protections. Extensive bribery in Indonesia's public service is a reason for concern for foreign investors: Corruption at the borders is cited by companies as a problem, and public officials often exploit ambiguous legislation to extort informal payments and bribes from companies in the process of registering a business, filing tax reports or obtaining permits and licences. Illegal logging is threatening Indonesia's rainforests due to thousands of illegal logging permits being issued by public bodies. The Law No 31/1999 on Eradication of Criminal Acts of Corruption criminalises major acts of corruption - including active and passive bribery, abuse of office and extortion - and Indonesia's Criminal Code forbids embezzlement and gifts to public officials. The anti-corruption legal framework is deficient and does not address facilitation payments.

July 2015
GAN Integrity Solutions