Indonesia has witnessed solid economic growth in recent years. In 2010, GDP growth reached 6.1%, and is expected to be higher in 2011, provided the global economic recovery continues. According to the Bertelsmann Foundation 2010, foreign investment is on the rise in Indonesia, and there are significant improvements to be seen with regard to the general investment climate. Despite the deregulation process being successfully implemented, investors still point at corruption and red tape as the main challenges to doing business in the country, as reported by the US Commercial Service 2010. Companies continue to be concerned about concessions based on personal relationships and demands for irregular fees to obtain government contracts, permits or licences. According to Transparency International's Indonesia Corruption Perception Index 2008 and Bribery Index, companies identify the judiciary and police as the two top institutions that should be prioritised to be cleaned from corruption.

According to a national survey on corruption cited by Credit-to-Cash Advisor 2008, 35% of the interviewed companies reported that they avoided investing in Indonesia because of widespread corruption. According to the World Bank & IFC Enterprise Surveys 2009, nearly 15% of the surveyed companies expect to pay bribes to public officials to 'get things done' and 14% state that corruption is a major problem for doing business in Indonesia. In the World Economic Forum Global Competitiveness Report 2010-2011, the surveyed business executives point to corruption as the second most problematic factor for doing business and state that it is common for companies to make irregular payments or bribes in connection with imports and exports, public utilities, annual tax payments and awarding of public contracts and licences. In contrast, business executives report that the extent to which government officials favour well-connected companies and individuals when deciding upon policies and contracts constitutes a competitive business advantage for Indonesia. According to Transparency International's Global Corruption Barometer 2010, 12% of the respondents also consider the private sector to be 'extremely corrupt'. According to the World Bank's Indonesian Rural Investment Assessment 2006, decentralisation has led to smaller markets and restrictions on inter-regional competition, and this has encouraged collusion and anti-competitive behaviour by companies and local governments in several regions. 

Bribery typically occurs during licensing procedures, as reported by the US Commercial Service 2010. According to the same source, foreign companies report that unwarranted fees or facilitation payments are required in order to obtain permits and licences, to speed up processes or to win government contracts and concessions. According to the World Bank’s Indonesian Rural Investment Climate Assessment 2006, service sector companies in resource rich and urban areas pay higher amounts in bribes. More established and larger companies pay lower bribes. The financial sector regulation is reported to be effective, but most listed companies are either family-owned or government-controlled and systems of corporate governance and auditing are well below international standards. Many political parties rely on support from private companies and corporate donations are often associated with influence-peddling in the form of kickbacks from companies or state agencies seeking to get legislation approved. Companies are generally advised to consult with experienced attorneys, to develop, implement and strengthen integrity systems, and to carry out extensive due diligence before committing funds or when already doing business in the Indonesia.

Indonesia has a relatively open foreign investment regime. Recent reforms have put greater emphasis on improving the business climate, enhancing regional competitiveness, and creating a more vibrant private sector. Moreover, public finance management has improved, and tariff barriers have been lowered, as outlined by the Heritage Foundation 2011. In 2007, the government introduced a new Investment Law which provides a set of rules to protect investors such as non-discriminatory treatment and recourse to international arbitration in disputes against the government. However, according to the US Commercial Service 2010 and the Bertelsmann Foundation 2010, the new Investment Law also significantly increased the number of sectors that are prohibited to foreign investment. Nevertheless, business executives in the World Economic Forum Global Competitiveness Report 2010-2011 indicate that the level of government regulation over private business has eased and now represents a competitive business advantage for Indonesia.

Generally, the lack of local compliance with national law and inconsistencies between local and national law is a major problem in Indonesia. According to the US Commercial Service 2010, laws and regulations are often vague and vary in implementation across different Indonesian regions, leading to increased business uncertainty and rent-seeking opportunities. Some regions have enacted policies and laws that accord preferential treatment to their own citizens and companies. This includes the attempt to exclude or to tax workers and companies that come from outside the region and the imposition of taxes, a practice which violates national law, as reported by the World Bank Rural Investment Assessment 2006. Local business licences are burdensome to comply with and allow widespread possibilities for corruption, meaning that the cost of compliance is highly uncertain. Each business sector has its own licensing rules, and the costs and time spent in company registration are relatively high. According to the World Bank & IFC Doing Business 2011, it takes 47 days and 9 procedures to start a company at a cost of 22% of GNI per capita. Obtaining necessary construction permits takes 160 days, 14 procedures and costs 173% of income per capita on average. Companies seem to receive a relatively uniform regulatory treatment by the government, although the picture varies considerably from region to region.

According to the US Commercial Service 2010, reforms of the judicial system are given high priority by President Yudhoyono, but the Indonesian court system still cannot provide effective recourse to settle commercial disputes. The US Department of State 2008 also notes that Indonesia has a complex regulatory and legal environment that leads many foreign and domestic companies to avoid the justice system. The judicial rulings are often irregular due to corrupt and collusive practices. Local courts have in several cases accepted jurisdiction over commercial disputes despite contractual arbitration clauses calling for adjudication in foreign venues. Companies are often advised by legal experts to resolve disputes through arbitration outside Indonesia, because the judicial system operates irregularly and opaquely. Indonesia is a signatory to the Convention On The Settlement Of Investment Disputes Between States And Nationals Of Other States (ICSID). For more information on dispute settlement, see the section on the judicial system under Corruption Levels. Access the Lexadin World Law Guide for a collection of legislation in Indonesia.

Individual Corruption

Business CorruptioN

According to Transparency International’s Indonesia Corruption Perception Index 2008 and Bribery Index, nearly one-fourth of all business respondents think that the eradication of corruption in the judiciary should be the highest priority. On the other hand, a substantial amount of companies surveyed by the World Bank & IFC Enterprise Surveys 2009 believe that the Indonesian court system is fair, impartial and uncorrupted.

According to the US Department of State 2008, Indonesia has a complex regulatory and legal environment that leads many foreign and domestic companies to avoid the justice system. Laws and regulations are often vague and require substantial interpretation by implementing offices, leading to business uncertainty and rent-seeking opportunities. Moreover, the same source reports that foreign investors continue to perceive the court system in Indonesia as weak, lacking transparency and being corrupt.

Political CorruptioN

According to the Bertelsmann Foundation 2010, military, business and political interests still play a role within the Indonesian judiciary. Bribery within the judicial service often influences prosecution, conviction, and sentencing in many civil cases.

According to the US Department of State 2010, the National Ombudsman Commission (in Indonesian) received 160 complaints filed against judges, clerks and lawyers on corruption throughout 2009. It is also reported that key individuals in the judicial system were accused of accepting bribes and of turning a blind eye to some of the suspected corrupt government offices. Prosecution, conviction and sentencing in both civil and criminal cases are said to be influenced by bribes and extortion.

Frequency

The World Bank & IFC: Doing Business 2011:
- To enforce a commercial contract, a company is required to go through 40 procedures, taking 570 days at a cost of 123% of the claim on average.

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give the independence of the judiciary from influences of members of government, citizens, or companies a score of 3.8 on a 7-point scale (1 being 'heavily influenced' and 7 'entirely independent').

- Business executives give the efficiency of the legal framework for private companies to settle disputes and challenge the legality of government actions and/or regulations a score of 3.8 and 3.9 respectively on a 7-point scale (1 being 'extremely inefficient' and 7 'highly efficient').

Transparency International: Global Corruption Barometer 2010:
- 22% of households surveyed consider the judiciary to be 'extremely corrupt'.

- 14% of households who had contact with the judiciary in 2009 report to have paid a bribe.

- Citizens give the judiciary a score of 3.3 on a 5-point scale (1 being 'not at all corrupt' and 5 'extremely corrupt').

The World Bank & IFC: Enterprise Surveys 2009:
- 70% of companies believe the court system is fair, impartial and uncorrupted.

- 5% of companies identify the functioning of the courts as a major business constraint.

Transparency International: Bribe Payers Index 2008:
- Business executives give the judiciary a score of 3.8 on a 5-point scale (1 'not at all corrupt' and 5 'extremely corrupt').

Individual Corruption

In general, the Indonesian public lacks confidence in the police. According to Transparency International’s Global Corruption Barometer 2010, the police are perceived by the surveyed households to be the second most corrupt institution in the country. Furthermore, the US Department of State 2010 also reports that corruption remains widespread in the police in some provinces. Petty corruption, such as processing traffic violations, or extorting larger bribes in criminal investigations is common.

Business Corruption

Corruption within the police has increasingly become a serious concern for businesses in Indonesia. According to a November 2010 news article by The Jakarta Post, most foreign and several local companies allege that it is better to keep silent about extortion attempts by the police, in order to avoid unnecessary risks of retaliation.

Reportedly, the Indonesian police often demand additional payments from companies for security arrangements. According to Transparency International's Indonesia Corruption Perception Index 2008 and Bribery Index, more than one-fifth of all business respondents think that fighting corruption in the police force should be highly prioritised.

Political Corruption

According to a 2010 news article by The New York Times, the arrest of Islamist militants in Aceh province in April 2010 has exposed how corrupt police officers are helping Islamist militancy to grow. The New York Times cites a 2010 report released by the Brussels-based International Crisis Group, which shows that corrupt police officers helped Jihadist to acquire weapons. One police officer, Mohamed Sofyan Tsauri, who is closely linked to the Aceh group, was arrested for arranging shooting practice for militants inside the paramilitary police’s headquarter. The same report also states that corrupt prison guards made life more comfortable for jailed militants by smuggling goods into their cells in return for bribes.

Indonesia’s most prominent anti-corruption NGO, Indonesia Corruption Watch (ICW), filed a complaint in June 2010 at the Corruption Eradication Commission regarding a suspicious bank account holding USD 10.3 million allegedly belonging to a senior police general. According to the chairman of the ICW, as cited in a June 2010 news article by Jakarta Globe, there were signs of bribery and illegal gratuities involved in the aforementioned account. However, according to the same source, the National Police have refused to investigate the case further.

Frequency

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give the reliability of the Indonesian police to enforce law and order a score of 4 on a 7-point scale (1 being 'cannot be relied upon at all' and 7 'can always be relied upon').

Transparency International: Global Corruption Barometer 2010:
- 30% of households surveyed consider the police to be 'extremely corrupt'.

- 11% of households who had contact with the police in 2009 report to have paid a bribe.

- Citizens give the police a score of 3.5 on a 5-point scale (1 being 'not at all corrupt' and 5 'extremely corrupt').

The World Bank & IFC: Enterprise Surveys 2009:
- 12.6% of companies surveyed identify crime, theft and disorder as a major constraint on doing business.

Transparency International: Bribe Payers Index 2008:
- Business executives give police a score of 3.9 on a 5-point scale (1 'not at all corrupt' and 5 'extremely corrupt').

Individual Corruption

According to the Transparency International’s Global Corruption Barometer 2010, citizens in Indonesia report that they may encounter corruption in connection with obtaining registrations and permits. The US Department of State 2010 also reports that some ethnic groups have encountered bribery when obtaining citizenship certificates. Furthermore, corruption is also deeply entrenched in the education sector, where for example, bribes are needed in order to obtain a kindergarten permit. According to Freedom House 2010, the government has taken steps to tackle such problems by increasing teachers’ salaries in 2009, however, the problem still remains.

Business Corruption

Companies should be aware that gifts are sometimes expected in order to obtain access to public utilities, such as telephone, water and electricity connections. A considerable number of the surveyed companies in the World Bank & IFC Enterprise Surveys 2009 cite that they are expected to give gifts in return for construction permits and operating licences. Moreover, companies report that the amount paid in irregular fees to obtain required licences and permits is often based on personal relationships, according to the Heritage Foundation 2011.

Political Corruption

According to Transparency International’s Global Corruption Report 2009, the rapid expansion of the Indonesian airline industry in the late 1990s created many safety issues, as well as opportunities for corrupt practices. The same source also reports that all matters related to certificates such as obtaining operating permits and pilot licence extensions, can reportedly be resolved by bribes, despite that standard requirements have not been met.

Frequency

The World Bank & IFC: Doing Business 2011:
- Starting a company requires the entrepreneur to go through 9 administrative procedures, taking 47 days at a cost of 22% of GNI per capita.

- Dealing with construction permits in Indonesia requires a company to go through 14 administrative steps, which take an average of 160 days at a cost of 173% of income per capita.

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give the government administrative requirements (permits, regulations, reporting) in Indonesia a score of 3.7 on a 7-point scale (1 being 'extremely burdensome' and 7 'not burdensome at all').

Transparency International: Global Corruption Barometer 2010:
- 10% of households who had contact with registry and permit services in 2009 report to have paid a bribe.

- 7% of households who had contact with the utilities services in 2009 report to having paid a bribe.

- 16% of households who had contact with medical services in 2009 report to have paid a bribe.

The World Bank & IFC: Enterprise Surveys 2009:
- 15% of companies surveyed expect to give gifts to public officials in order to 'get things done'.

- 26% of companies surveyed expect to give gifts in order to get an operating licence.

- 37% of companies surveyed expect to give gifts in order to get a construction permit.

- 22%, 16% and 23% of the companies surveyed expect to give gifts in order to obtain a water, telephone and electrical connection respectively.

Transparency International: Bribe Payers Index 2008:
- Business executives give the registry and permit services a score of 3.7 on a 5-point scale (1 'not at all corrupt' and 5 'extremely corrupt').

Business Corruption

The Foreign Capital Investment Law 1967 states that the Government of Indonesia cannot initiate nationalisation of foreign investments except by law and when such action is necessary in the interest of the state. According to the US Commercial Service 2010, a company's right to compensation if its property is expropriated is respected and the government has not expropriated any foreign investment since the passage of the law in 1967. Nevertheless, business executives in the World Economic Forum Global Competitiveness Report 2010-2011 indicate that property rights are neither well-defined nor well-protected by law in Indonesia. Land valuations are often subject to negotiation and property values are systematically undervalued in order to avoid paying taxes.

Political Corruption

Corruption is rampant within the land management sector in Indonesia. According to a 2011 news article by The Jakarta Post, the matter has not been given proper attention until recently. The same source also states that the Judicial Mafia Taskforce, overseen by the National Land Agency, is making it possible to expose corruption in the land management system. The taskforce is said to be reviewing reports from the public in order to identify corruption patterns in the land management sector.

According to a 2007 news article by Deutche Presse-Agentur, in August 2007, the Attorney General's office filed a civil lawsuit against Tommy Suharto, son of the former Indonesian dictator, seeking the return of about USD 53 million that went missing in a major land exchange scam which took place in 1995. The suit targets a supermarket chain in which Suharto was a commissioner and the former chairman of Indonesia's national logistic agency, Bulog. The supermarket chain acquired prime real estate owned by Bulog in return for useless swamp land while his father, Suharto, was still in office. The Suharto family is accused of secretly siphoning off as much as USD 35 billion during Suharto's regime.

Frequency

The World Bank & IFC: Doing Business 2011:
- Registering property requires 6 procedures, takes 22 days and costs 10.9% of the property value on average.

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give the protection of property rights in Indonesia, including financial assets, a score of 4 on a 7-point scale (1 being 'very weak' and 7 'very strong').

Transparency International: Global Corruption Barometer 2010:
- 9% of the households surveyed reported to have paid a bribe to land services in 2009.

Individual Corruption

Corruption in the tax administration on the individual level does not appear to be a major problem in Indonesia. For instance, only a small percentage of the surveyed households from Transparency International’s Global Corruption Barometer 2010 had experienced demands for bribes in relation to tax revenue services in 2009.

Business Corruption

Large variations exist in taxes and taxation practices in Indonesia's different regions due to what the US Department of State 2008 describes as the vagueness of laws and the substantial interpretations of implementing offices. Global Integrity 2009 also reports that tax laws are not always enforced uniformly or without discrimination in Indonesia. Furthermore, more than one-tenth of the surveyed companies in the World Bank & IFC Enterprise Surveys 2009 expect to give gifts in meetings with tax officials.

Political Corruption

According to a November 2010 news release by Transparency International Indonesia, the tax office is viewed to be the second most corrupt institution by the general public in Indonesia.

In January 2011, a former tax official, Gayus Tambunan, was sentenced to seven years in prison for four counts of corruption, including bribing his way out of bribery charges. According to a 2011 news article by BBC, Tambunan was charged with accepting bribes from companies so that they could avoid paying taxes. The case also implicates several others, including prosecutors and police officials, whom Tambunan had previously paid bribes to in exchange for letting him out of jail and avoiding charges.

In February 2011, a former tax director was sentenced to 10 years in prison for corruption and money laundering. According to a 2011 news article by Jakarta Globe, the court ordered the seizure of the tax director’s money after he failed to prove the money had come from lawful sources.

Frequency

The World Bank & IFC: Doing Business 2011:
- Companies spend an average of 266 hours a year dealing with taxes and make 51 payments (twice the regional average), at a total tax rate of 37%.

Transparency International: Global Corruption Barometer 2010:
- Nearly 8% of households who had contact with tax revenue services throughout 2009 report to have paid a bribe.

The World Bank & IFC: Enterprise Surveys 2009:
- 5% of companies consider the Indonesian tax administration as a major constraint.

- 14% of the companies surveyed expect to give gifts in meetings with tax officials.

Transparency International: Bribe Payers Index 2008:
- Business executives give tax revenue authorities a score of 3.5 on a 5-point scale (1 being 'not at all corrupt' and 5 'extremely corrupt').

Individual Corruption

According to Transparency International's Global Corruption Barometer 2010, more than one-tenth of the surveyed households who had contact with the customs administration in 2009, report to have paid a bribe.

Business Corruption

Business executives from Transparency International’s Bribe Payers Index 2008 perceived the customs administration to be very corrupt. This is also illustrated in the World Economic Forum Global Enabling Trade Report 2010, in which business executives rate the transparency of the border administration, in relation to irregular payments in export and imports, as relatively low. This constitutes a competitive disadvantage for the country.

According to the Heritage Foundation 2011, import and export licensing requirements and restrictions, non-transparent and inconsistent regulations as well as customs valuation that can be inconsistent and prone to corruption, all add to the cost of trading across borders. Nearly one out of five of the surveyed business executives from the World Bank & IFC Enterprise Surveys 2009 report that they expect to give gifts in order to get an import licence.

Political Corruption

According to a 2009 news article by The Jakarta Post, an official at the Tanjung Priok Seaport and Customs Office in North Jakarta, Agus Syafiin Pane, in March 2009, was tried for receiving bribes and extorting money from businesspeople to speed up imports between 2007 and 2008.

Frequency

The World Bank & IFC: Doing Business 2011:
- A standard export shipment of goods takes an average of 20 days and 5 documents at a cost of USD 704 per container.

- A standard import shipment of goods takes an average of 27 days and 6 documents at a cost of USD 660 per container.

Transparency International: Global Corruption Barometer 2010:
- 15% of households who had contact with the customs administration throughout 2009 report to have paid a bribe.

World Economic Forum: The Global Enabling Trade Report 2010:
- Business executives give the transparency of border administration (pervasiveness of undocumented extra payments or bribes connected with imports and exports) in Indonesia a score of 3.1 on a 7-point scale (1 'non-transparent' and 7 'transparent').

- Business executives give the efficiency of customs administration (burden of customs procedures) in Indonesia a score of 3.7 on a 7-point scale (1 'extremely inefficient' and 7 'extremely efficient').

The World Bank & IFC: Enterprise Surveys 2009:
- 19.5% of the companies surveyed expect to give gifts in order to get an import licence.

Transparency International: Bribe Payers Index 2008:
- Business executives give the customs a score of 3.9 on a 5-point scale (1 'not at all corrupt' and 5 'extremely corrupt').

Business Corruption

According to Presidential Decree No.80/2003, companies that are found guilty of violating procurement regulations are prohibited from future bidding. However, in practice, it is alleged that companies have circumvented this by changing their names, as reported by Global Integrity 2009. Moreover, in many tenders, especially at the regional level, fair competition is often limited due to wining companies having paid bribes to competing companies in order to make them withdraw their bids. The same source also reports that public officials often turn a blind eye to this despite their knowledge of such practices. Furthermore, according to the Heritage Foundation 2011, companies cite that the awarding of government contracts and concessions in Indonesia are often based on personal relationships with procurement officials and politicians. Companies should also be aware that gifts are often expected in order to secure a government contract, as stated by a large number of the surveyed companies in the World Bank & IFC Enterprise Surveys 2009.

In a June 2009 news article by Jakarta Globe, a business woman received a 30-month prison sentence for her role in a 2004 graft scandal. She was convicted for having inflated a training and development project by almost USD 2 million in collaboration with two formal officials from the Manpower and Transmigration Ministry and executives from four other companies. The two former government officials were each sentenced to four years in prison.

Companies are recommended to use a specialised public procurement due diligence tool in order to help mitigate the corruption risks associated with public procurement in Indonesia. For further information on public procurement, see 'Public Anti-corruption Initiatives' in the Initiatives section.

Political Corruption

In order to increase the transparency of the public procurement processes at the national level, the Indonesian government has implemented some measures, such as eliminating licensing requirements on bidders. However, according to Freedom House 2010, the country is lacking an effective mechanism to oversee procurement officials’ assets and to investigate alleged bribery cases. Therefore the public procurement sector still remains one of the most corrupt sectors in Indonesia. 

According to a January 2010 news article in The Jakarta Post, the former high-ranking government official, Oentarto Sindung Mawardi, was sentenced to three years in prison for bribery and abuse of power. He was charged with causing a loss of USD 8.7 million, by sending a memo telling regional administrators to buy fire engines provided by a specific company, without going through any tender process.

For further information on public procurement, see 'Public Anti-corruption Initiatives' in the Initiatives section.

Frequency

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give the diversion of public funds to companies, individuals, or groups due to corruption a score of 3.5 on a 7-point scale (1 being 'very common' and 7 'never occurs').

- Business executives give the favouritism of government officials towards well-connected companies and individuals when deciding upon policies and contracts a score of 3.9 on a 7-point scale (1 being 'always show favouritism' and 7 'never show favouritism'), constituting a competitive business advantage for the country.

The World Bank & IFC: Enterprise Surveys 2009:
- 38% of the companies surveyed expected to give gifts to secure a government contract.

- The average value of a gift expected to secure a government contract is 1.8% of the contract value.

Business Corruption

Global Integrity 2008 reports that company inspections by government officials to ensure public environmental standards are not always carried out in a uniform and even-handed manner. According to a 2010 news article by The Jakarta Post, the Corruption Eradication Commission (KPK, in Indonesian) conducted a study in 2010, which found indications that many plantation companies offered bribes to local administration officials in order to carry out illegal practices.

Political Corruption

Corruption in the forestry sector in Indonesia is rampant. A typical example is government officials accepting bribes from businesses in exchange for issuing logging licences. According to a 2010 news article by The Jakarta Post, the former head of Riau Forestry Agency was sentenced to five years in prison for accepting USD 168,000 in bribes for issuing forest conversion permits to five companies. According to the same source, misuse of forest permits by officials is the most common form of corruption in the forestry sector.

According to Transparency International's Global Corruption Report 2009, Adelin Lis, a successful timber industrialist, was acquitted of corruption and illegal logging charges in November 2007 despite a strong government case against him, including nearly forty eyewitnesses. This affair shed light on the links between environmental destruction, judicial corruption and political interference. This case elucidates how environmental laws are openly flouted by the private sector, often in collusion with local and provincial government officials.

• Legislation: Indonesia's Law No. 20 of 2001 (in Indonesian) on the Eradication of Corruption criminalises both active and passive corruption in the public sector, as well as extortion and money laundering. The anti-corruption legislation, however, does not forbid the bribery of foreign officials and it only deals with public sector corruption. According to a March 2011 news article by Jakarta Globe, a new draft Anti-Corruption Bill has been submitted to the State Secretariat and would be submitted to the House of Representatives for deliberation. The new bill will cover the criminalisation of private sector corruption and bribery of foreign public officials. Indonesia ratified the United Nations Convention against Corruption (UNCAC) in September 2006. These measures signify a keen ambition on the side of the government to curb corrupt practices, but in reality the enforcement lags behind. The establishment of the Corruption Eradication Commission (KPK) has brought about some progress in the enforcement of anti-corruption regulations. For example, according to the Bertelsmann Foundation 2010, the KPK succeeded in arresting several high-ranking political figures, including high-ranking officials from the Foreign Ministry and the national Parliament. Jakarta Globe reports that in September 2009, an Anti-Corruption Court bill was passed into law according to which the Corruption Eradication Commission (KPK) will retain its ability to prosecute corruption cases and the power to conduct wiretaps of suspects, although the Anti-Corruption Court would determine their admissibility. Civil society organisations have been critical of the bill and a legal researcher has pointed out that many articles of the bill failed to give clear authority to the anti-graft court and left room for differing interpretations. Access the Lexadin World Law Guide for a collection of legislation in Indonesia.

• Government Strategies: Since President Yudhoyono took office in 2004, anti-corruption has featured very prominently on the political reform agenda. Corruption was recognised to be an obstacle to attracting foreign investment and to building good external relations - hence the issue had to take priority. With the ratification of the UNCAC in 2006 and a strengthened anti-corruption commission, the Indonesian government has internationally committed itself to combating corruption. Moreover, President Yudhoyono plans to issue a Presidential Decree in May 2011 on corruption prevention and eradication at all levels, and a clear set of rules that should be followed by all ministries and other government institutions, as reported in a March 2011 news article by Jakarta Globe. Despite the Yudhoyono administration making judicial reform and anti-corruption work its main priorities, the Indonesian judiciary, according to several sources such as the US Commerical Service 2010 and Freedom House 2010, is still plagued with corruption. An April 2010 news article by Jakarta Globe cites that most analysts believe that President Yudhoyono’s anti-corruption commitment has stalled since the re-election in 2009.

• Anti-Corruption Agency: The Corruption Eradication Commission (KPK, in Indonesian) is the main public anti-corruption institution, and according to Freedom House 2010, the KPK is viewed as the most effective investigative agency in the country. The KPK consists of a special Corruption Crimes Court, and has 105 employees, in positions ranging from policemen, independent prosecutors and investigators. Global Integrity 2009 reports that the KPK is independent and receives regular, though insufficient, funding. The KPK can initiate investigations, but it has limited capacity to act on the numerous complaints it receives. Among the tasks of the KPK is the annual collection of asset declarations from heads of state and government and oversight of the regulations on gifts and hospitality. The disclosure records are publicly available. According to the Bertelsmann Foundation 2010, the KPK has been criticised for lacking a structural approach to tackle problems, and has not managed to thoroughly eradicate the culture of corruption that permeates all levels of the society. Nonetheless, a number of high-profile cases and convictions in recent years have improved the commission's image. For instance, in 2009, the KPK prosecuted three Parliamentary Members and in 2008, it sentenced the former governor of the Bank of Indonesia to 5 years in prison for embezzling USD 10.3 million of central bank funds. Freedom House 2009 reports that this eventually led to the arrest of the bank's former deputy-governor, the father-in-law of President Yudhoyono's son.

• National Ombudsman Commission (ORI, in Indonesian): The ORI was established in 2000 by a presidential regulation. The ORI receives reports and can initiate investigations of irregularities in the public sector; however the ORI does not cover all parts of the public sector. According to Global Integrity 2009, the ORI is an independent state institution under Law No. 37 of 2008. It receives regular funding, mainly from the national budget (APBN), and has partnerships with international donor funds. The ORI publishes its yearly reports that are accessible on its website; however, not all of its investigation results are published. According to the same source, little attention is given to the ORI’s findings by the government. Nevertheless, Global Integrity 2009 evaluates the ORI as ‘very strong’.

• Auditor General (BPK, in Indonesian): The BPK is the supreme audit institution and has offices in every province. The BPK receives regular funding and is professionally staffed. It can initiate investigations proactively, and does so in practice, and publishes reports on its website. Global Integrity 2008 emphasises that the BPK has no obligation to make its reports publicly available. The government is known to act on findings in high profile cases, although it has failed to act on some low-profile findings by the BPK. There is a general lack of legislation and procedures for following up on reports. According to Global Integrity 2009, the BPK's appointments do not fully support its political independence, since there are still BPK members who come from political parties. Freedom House 2010 also states that the BPK has dealt with several cases of misconduct in recent years; however, some of its members themselves have been suspected of corruption. Nevertheless, Global Integrity 2009 evaluates the BPK as 'very strong'.

• Indonesian Financial Transaction Report and Analysis Centre (PPATK): The PPATK was established in 2003 with mandate to prevent and eradicate money laundering in Indonesia. The PPATK receives and analyses suspicious transaction reports, cash transaction reports and other information as well as distributing the analysed reports to law enforcement agencies.

• Extractive Industries Transparency Initiative (EITI): EITI is an international strategic alliance between governments, private companies, civil society groups and international organisations with the objective of publicising and accounting for revenues and expenses that come from extractive industries, such as oil, mining and other extractive resource industries. Being rich in hydrocarbon and minerals, Indonesia announced its intention to implement the EITI in 2009 and was designated by the EITI board as a candidate country in October 2010. As part of the process of achieving compliant status, Indonesia must now complete EITI Validation before 18 October 2012. Updates and reports on this process will be posted on the EITI/Indonesia website.

• E-Governance: Indonesia is only in its initial phase of setting up e-governance. Indonesia runs an official national website (connection to the website may be unstable) which contains information on the government and ministries, laws and regulations, as well as news on political issues. So far, the e-governance system at the national level is only a one-way system allowing the public to get access to information. According to the World Bank & IFC Doing Business 2011, the government launched the Indonesia National Single Window (INSW) in 2010 (connection to the website may be unstable), and it subsequently has become operational at several main seaports in Indonesia. The INSW serves as a one-stop service to streamline the country’s customs procedures. There are examples of e-governance being utilised at the local level (e.g. in Palembang City), contributing to an easier flow of communication and exchange of information and more efficient administration and services. Public procurement is also being targeted for the development of an electronic advertising and bidding system (see below).

• Public Procurement: There are a number of presidential decrees regulating public procurement. Generally, the legislation is adequate, while implementation is still lacking. According to the US Commercial Service 2010, the Presidential Decreee No. 80/2003 on procurement is currently being revised. Under the revised regulation, foreign companies will only be allowed to bid on construction projects with a value of more than IDR 100 billion; projects for goods worth more than IDR 20 billion and projects for consultant services of more than IDR10 billion. It is also reported that a Procurement Law will be set up based on this revised regulation. Competitive bidding is mandatory and review of the decisions by unsuccessful bidders is possible. Companies who violate the regulations are blacklisted. However, according to Global Integrity 2009, in practice, it is alleged that companies have circumvented this by changing their names. Further, Transparency International's Global Corruption Report 2009 states that, according to the KPK, around 30% of the national procurement budget is lost to corruption each year, while officials' lack of understanding of procurement regulations and tender procedures causes significant delays in budget implementation. In order to curb corruption and to increase transparency, an e-government procurement website (in Indonesian) was established. By allowing registered vendors to submit secure bids from any computer linked to the Internet, the system helps prevent bids from being tampered with. In addition, the system will include electronic advertising of upcoming tenders to ensure open access to bids. E-procurement has been successful in Surabaya, but many manual steps are still involved, which makes corruption and fraud possible. Integrity Pacts against corruption between stakeholders in public procurement (local executives, civil servants, private contractors and civil society) have been founded in different regions in Indonesia. Some of the experiences with these constellations can be found in the Transparency International Handbook for Curbing Corruption in Public Procurement 2006.

• Whistle-Blowing: Law No. 13 of 2006 on the Protection of Witnesses and Victims provides protection to citizens who report corruption and bribery cases. However, according to Global Integrity 2009, civil servants and private sector employees are not protected from retaliation or other negative consequences when they report corruption cases. According to a 2006 article by Indonesia Corruption Watch, the law was not being enforced and in 24 graft cases, those reporting had themselves ended up being prosecuted, while the cases they reported were dismissed. Many have been reluctant to testify in court against corruption suspects for fear of defamation charges. In February 2010, the Asian Human Rights Commission states that due to a lack of political will, the Witness and Victim Protection Agency (LPSK) was not established until 2008, despite that the law had been enacted in 2006. As such the LPSK did not receive funds until the end of 2008, making it difficult to carry out its mission.

• General Comments on the Public Anti-Corruption Initiatives: With the establishment of the Corruption Eradication Commission (KPK) and a comprehensive set of anti-corruption laws, the counter-corruption work has witnessed some progress. Moreover, a new anti-corruption bill has been submitted to the State Secretariat and will be submitted to the House of Representatives. If it passes, it will provide a broader anti-corruption term including criminalising private sector corruption and bribery of foreign public officials. All these illustrate a general commitment on the side of the Indonesian government towards increasing transparency and good governance. Even though several politicians, legislators and former ministers have been sentenced on corruption charges under his rule, Yudhoyono has been criticised for failing to net key figures from the tenure of former dictator Suharto. Moreover, a lack of effective whistleblower protection is making witnesses and victims reluctant to report corruption cases. Therefore, an effective witness protection is necessary in order to address the culture of impunity.

• Media: According to the US Department of State 2010, the government occasionally restricts freedom of speech and press, despite being guaranteed by the constitution. There have been cases where journalists faced threats of violence and where powerful individuals filed complaints against journalists for articles that were seen as offensive or insulting to them. Despite of this, the media are very active in reporting on cases of corruption, and the Bertelsmann Foundation 2010 reports that the Indonesian press environment is considered one of the freest in Southeast Asia. Accessing information from the government can be difficult and the necessary legislation, procedures and practices for accessing information are not in place. However, a Freedom of Information Act was passed in 2008 with full implementation expected in 2010. However, the US Department of State 2010 states that many government entities are not yet ready to implement the law. Among the numerous printed and electronic media in Indonesia, the bribing of journalists still occurs which is commonly known as 'Envelope Journalism', as reported by Jakarta Globe 2009. According to Freedom House 2010, in April 2008, the law on Electronic Information and Transactions was enacted, which deems criminal the distribution or accessibility of information or documents which are 'contrary to the moral norms of Indonesia'. Reporters Without Borders 2010 ranks Indonesia 117th out of 178 countries, while Freedom House 2010 ranks the country 107th out of 196 countries and describes its press environment as 'partly free'.

• Civil Society: According to the US Department of State 2010, the law provides for both freedom of association and assembly, and the government generally respects these rights in practice. Indonesian civil society is known to be active and enjoy a relative high degree of freedom in the post-Suharto regime. However, it is reported that some activists working on anti-corruption and human rights issues, particularly on the local level, are subjected to threatening messages and intimidation, or physical attacks, as reported by the US Department of State 2010 and Global Integrity 2009. According to the Bertelsmann Foundation 2010, at the national level, civil society organisations (CSOs) often have difficulty making the administration take their demands into consideration. This is due to the fact that the bureaucrats often consider the CSOs as being sponsored by foreign donors, and as such, not representative of ordinary Indonesians’ interests. A report published by the Partnership for Governance Reform in Indonesia (see below) in 2006 describes 10 case studies of anti-corruption activities by civil society organisations. Lastly, Global Integrity 2009 evaluates civil society organisations in Indonesia as 'weak'.

• Partnership for Governance Reform in Indonesia (Kemitraan): As a United Nations Development Programme (UNDP) project, in 2003, Kemitraan formally became an independent legal entity. Kemitraan is a partnership between the international community and several Indonesian public and private actors. This multi-stakeholder association works to implement governance reforms in the public sector, including anti-corruption initiatives. Kemitraan is the only national organisation working on governance reform throughout Indonesia. The organisation coordinates several governance reform projects and provides financial assistance to Indonesian agencies working with governance reforms. By mid-2009, Kemitraan had implemented 323 projects in 33 provinces worth USD 70 million. External evaluations have confirmed that Kemitraan is considered highly effective and has established itself as the leading local governance reform organisation in Indonesia.

• Transparency International Indonesia (TI Indonesia, in Indonesian): TI Indonesia works on advocacy, information-gathering and awareness-raising concerning corruption issues. TI Indonesia has worked extensively with tax issues. In November 2010, it published the Indonesia Corruption Perception Index Survey 2010 that provides an in-depth analysis of the perception of corruption in 50 cities in Indonesia.

• Indonesian Society for Transparency (MTI, in Indonesian): MTI, or Masyarakat Transparansi Indonesia, monitors public policy and conducts research on corruption-related issues. It was founded by stakeholders from the business world, academics, journalists, government officials and religious leaders. Some of its members have links to the New Order regime of Suharto (click here for more information on the New Order regime of Suharto), but it is disputed whether this affects the credibility of the organisation.

• Indonesia Corruption Watch (ICW): ICW is an NGO working with advocacy, awareness-raising, research and analysis on issues of corruption in Indonesia. ICW was founded in 1998 following the fall of Suharto. It is one of the most visible anti-corruption NGOs in the country and it frequently publishes articles and gives public statements.

• Indonesia Business Links' Business Ethics Initiative (IBL): IBL is a non-profit foundation which was set up just after the Indonesian economic crisis. The organisation works not only towards establishing ethical business practices in the country, but also for general awareness-raising with regard to business ethics and corporate social responsibility. One of their initiatives is the Business Ethics Programme which they have conducted in collaboration with the Corruption Eradication Commission in order to teach SMEs in Indonesia about ethical business practices. See also Business Fighting Corruption.

The websites listed below provide useful facts on Indonesia as well as contacts and tools for companies operating in Indonesia:

• International Finance Corporation: Indonesia SME Toolkit
  Guide to sustainable business management practices for SMEs.
• Business Fighting Corruption
  An online resource centre for business on collective action to avoid corruption which contains a guide and resources for partnerships with companies and other stakeholders to fight against corruption.
• CIA World Fact Book: Indonesia Country Profile
• World Bank: Indonesia Data Profile

Sources for further reading:

• The Bertelsmann Foundation: Transformation Index - Indonesia 2010.
• Freedom House: Freedom in the World - Indonesia 2010.
• US Department of State: Human Rights Report - Indonesia 2010.
• US Commercial Service: Doing Business in Indonesia: A Country Commercial Guide for US Companies 2010.
• The World Bank: Rural Investment Climate Assessment (RICA): Revitalizing the Rural Economy 2006.

UNCAC Status: Signed 18 December 2003. Ratified 19 September 2006.

Status on UNCAC Implementation
This field describes the country's status on the United Nations Convention against Corruption. Please note any declarations and reservations made upon ratification. The list of signatories can be found on the UNODC website. Read more about the UNCAC.

Other Relevant Conventions or Treaties:

• ADB & OECD Anti-Corruption Initiative for Asia-Pacific Anti-Corruption Action Plan for Asia and the Pacific: Endorsed 30 November 2001.
  Read Transparency International's summary and assessment of the action plan.
• United Nations Convention against Transnational Organized Crime: Signed 12 December 2000. Ratified 20 April 2009.
  Read Transparency International's summary and assessment of the convention.

Transparency CPI: 2011: 100/182 (Score: 3)

Transparency CPI
This field consists of the score for the country in question on the Corruption Perceptions Index from Transparency International as well as its ranking.

World Bank CORR Index (-2.5 - +2.5): 2010: -0.73

World Bank Corruption Index
This field consists of the score for the country in question on the 'Control of Corruption' indicator in the World Bank Governance Research Indicator Country Snapshot (GRICS): 1996-2010.

OECD Country Risk Classification (0-7): 2011: 4

Country Risk Classification
The classification of countries by risk category has the aim of providing OECD countries with a basis for calculating the premium interest rate to be charged to cover the risk of non-repayment of export credits. Countries are placed in risk categories 0 - 7, with 0 being the lowest risk category and thus the least expensive. Conversely, premium group 7 is the highest risk category. Each classification is comprised of 2 components: 1) an assessment of the country's economic/financial situation, and 2) its overall political stability. Access the complete list of OECD Country Risk Classification figures.

Data Verification:

Publication date: June 2011

Data verified by: Global Advice Network

General Information Sources

• The World Bank & IFC: Doing Business 2011.
• The Heritage Foundation: Index of Economic Freedom - Indonesia 2011.
• Jakarta Globe: 'Indonesia Posts 6.1% GDP Growth in 2010: Official', 7 February 2011.
• World Economic Forum: The Global Competitiveness Report 2010-2011.
• The Bertelsmann Foundation: Transformation Index - Indonesia 2010.
• US Commercial Service: Doing Business in Indonesia: A Country Commercial Guide for US Companies 2010.
• Freedom House: Freedom in the World - Indonesia 2010.
• Transparency International: Global Corruption Barometer 2010.
• Transparency International Indonesia: 'The Police and Tax Office are Most Corrupt', 11 November 2010.
• The Sydney Morning Herald: 'Indonesia pays a high price for its corrupt heart', 8 May 2010.
• Transparency International: Global Corruption Barometer 2009.
• The World Bank & IFC: Enterprise Surveys 2009.
• Morningstar: 'Indonesia President Yudhoyono Wins Election - Election Committee', 25 July 2009.
• The Jakarta Post: 'Ex-regent faces 10 years for corruption', 17 July 2009.
• The Jakarta Post: 'Southeast Sulawesi top official arrested for alleged corruption', 16 July 2009.
• The Jakarta Post: 'Regulation in-lieu-of-law on corruption court the last resort: President', 13 July 2009.
• The Jakarta Post: 'ICW submits draft corruption court bill', 9 July 2009.
• Time: 'Indonesia Elections: A Win for Democracy', 8 July 2009.
• BBC News: 'Indonesia leader set for poll win', 8 July 2009.
• The World Bank: East Asia and Pacific Update 2008.
• Transparency International Indonesia: Measuring Corruption in Indonesia: Indonesia Corruption Perception Index and Bribery Index 2008.
• Global Integrity: Indonesia Country Report 2008.
• US Department of State: Investment Climate Statement - Indonesia 2008.
• Freedom House: Freedom in the World - Indonesia 2008.
• The Straits Times: 'Suharto's children to inherit civil lawsuit. Effort to recover state money will now be directed at late leader's family', 30 January 2008.
• Xinhua Financial Network News: 'Corruption fight would boost Indonesia's growth', 13 December 2007.
• Deutche Presse-Agentur: 'Indonesian president warns critics to keep quiet', 28 November 2007.
• The Australian: 'Court slammed on Suharto order', 12 September 2007.
• The World Bank: Rural Investment Climate Assessment (RICA) 2006.
• The Jakarta Post: 'Protecting whistle blowers in corruption cases', 28 August 2006.
• The World Bank World Development Report 2005.
• Transparency International: Global Corruption Barometer 2005.
• The Asian Development Bank: 'Business survey highlights investment climate challenge in Indonesia', 26 May 2005.
• The World Bank: Challenging Corruption in Asia - Case Studies and Framework for Action 2004.
• The World Bank, East Asia Poverty Reduction and Economic Management Unit: Combating Corruption in Indonesia. Enhancing Accountability for Development 2003.

Corruption Levels Sources

Judicial System

• The World Bank & IFC: Doing Business 2011.
• The Heritage Foundation: Index of Economic Freedom - Indonesia 2011.
• World Economic Forum: The Global Competitiveness Report 2010-2011.
• US Department of State: Human Rights Report - Indonesia 2010.
• The Bertelsmann Foundation: Transformation Index - Indonesia 2010.
• Transparency International: Global Corruption Barometer 2010.
• The World Bank & IFC: Enterprise Surveys 2009.
• Free1dom House: Freedom in the World - Indonesia 2009.
• Transparency International Indonesia: Measuring Corruption in Indonesia: Indonesia Corruption Perception Index and Bribery Index 2008.
• Transparency International: Bribe Payers Index 2008.
• Global Integrity: Indonesia Country Report 2008.
• US Department of State: Investment Climate Statement - Indonesia 2008.
• Transparency International: Curbing Corruption in Public Procurement - Experiences from Indonesia, Malaysia and Pakistan 2006.
• KPK: Identification of Gaps Between Laws/Regulations of the Republic of Indonesia and the United Nations Convention Against Corruption 2006.

Police

• World Economic Forum: The Global Competitiveness Report 2010-2011.
• Freedom House: Freedom in the World - Indonesia 2010.
• Transparency International: Global Corruption Barometer 2010.
• US Department of State: Human Rights Report - Indonesia 2010.
• Jakarta Globe: 'Indonesia Corruption Watch Alleges Senior Police Officer Has $10 Million Bank Account', 9 June 2010.
• The Sydney Morning Herald: 'Indonesia pays a high price for its corrupt heart', 8 May 2010.
• International Crisis Group: Indonesia: Jihadi Surprise in Aceh, 20 April 2010.
• The New York Times: 'Indonesian graft allows Islamist militancy to flourish', 20 April, 2010.
• The Jakarta Post: 'Corrupt police a torment for businesses', 7 January 2010.
• The World Bank & IFC: Enterprise Surveys 2009.
• Global Integrity: Indonesia Country Report 2009.
• Transparency International: Bribe Payers Index 2008.
• Transparency International Indonesia: Measuring Corruption in Indonesia: Indonesia Corruption Perception Index and Bribery Index 2008.

Licences, Infrastructure and Public Utilities

• The World Bank & IFC: Doing Business 2011.
• The Heritage Foundation: Index of Economic Freedom - Indonesia 2011.
• World Economic Forum: The Global Competitiveness Report 2010-2011.
• Transparency International: Global Corruption Barometer 2010.
• Freedom House: Countries at the Crossroads - Indonesia 2010.
• Freedom House: Freedom in the World - Indonesia 2010.
• Transparency International: Global Corruption Report 2009.
• The World Bank & IFC: Enterprise Surveys 2009.
• Global Integrity: Indonesia Country Report 2009.
• Transparency International: Bribe Payers Index 2008.
• The World Bank: Rural Investment Climate Assessment (RICA) - Revitalizing the Rural Economy 2006.

Land Administration

• The World Bank & IFC: Doing Business 2011.
• World Economic Forum: The Global Competitiveness Report 2010-2011.
• US Commercial Service: Doing Business in Indonesia: A Country Commercial Guide for US Companies 2010.
• Transparency International: Global Corruption Barometer 2010.
• Freedom House: Freedom in the World - Indonesia 2009.
• The US Department of State: Investment Climate Statement - Indonesia 2008.
• Deutche Presse-Agentur: 'Indonesia fails to reach settlement with Suharto son on graft case', 12 November 2007.

Tax Administration

• The World Bank & IFC: Doing Business 2011.
• The Heritage Foundation: Index of Economic Freedom - Indonesia 2011.
• Jakarta Globe: 'Reverse Burden of Proof a ‘Giant Step’ in Fight Against Graft, Analysts Say', 4 February 2011.
• BBC News: 'Indonesian taxman Gayus Tambunan jailed for corruption', 19 January 2011.
• Transparency International: Global Corruption Barometer 2010.
• Transparency International Indonesia: 'The Police and Tax Office are Most Corrupt', 11 November 2010.
• The Jakarta Post: 'Alleged new tax fraud case worth Rp 3.6 trillion uncovered', 18 May 2010.
• The World Bank & IFC: Enterprise Surveys 2009.
• Global Integrity: Indonesia Country Report 2009.
• Freedom House: Freedom in the World - Indonesia 2009.
• Transparency International: Bribe Payers Index 2008.
• Transparency International Indonesia: Measuring Corruption in Indonesia: Indonesia Corruption Perception Index and Bribery Index 2008.
• US Department of State: Investment Climate Statement - Indonesia 2008.
• The World Bank: Rural Investment Climate Assessment (RICA) - Revitalizing the Rural Economy 2006.
• Transparency International: Global Corruption Barometer 2005.

Customs Administration

• The World Bank & IFC: Doing Business 2011.
• World Economic Forum: The Global Competitiveness Report 2010-2011.
• The Heritage Foundation: Index of Economic Freedom - Indonesia 2011.
• Transparency International: Global Corruption Barometer 2010.
• Freedom House: Freedom in the World - Indonesia 2010.
• Global Integrity: Indonesia Country Report 2009.
• The World Bank & IFC: Enterprise Surveys 2009.
• The Jakarta Post: 'Customs officer on trial for corruption', 12 March 2009.
• Transparency International Indonesia: Measuring Corruption in Indonesia: Indonesia Corruption Perception Index and Bribery Index 2008.
• BBC News: 'Indonesia corruption drive breeds fear', 11 August 2008.
• The World Bank: Rural Investment Climate Assessment (RICA) - Revitalizing the Rural Economy 2006.

Public Procurement and Contracting

• The Heritage Foundation: Index of Economic Freedom - Indonesia 2011.
• World Economic Forum: The Global Competitiveness Report 2010-2011.
• Freedom House: Countries at the Crossroads - Indonesia 2010.
• Freedom House: Freedom in the World - Indonesia 2009.
• The Jakarta Post: 'Oentarto gets three years, Hari still free', 5 January 2010.
• The World Bank & IFC: Enterprise Surveys 2009.
• Global Integrity: Indonesia Country Report 2009.
• Jakarta Globe: 'Director Faints in Anti-Graft Court', 30 June 2009.
• US Department of State: Human Rights Report - Indonesia 2008.
• The Jakarta Post: 'Judicial watchdog member jailed for accepting bribe', 15 March 2008.
• Transparency International: Curbing Corruption in Public Procurement. Experiences from Indonesia, Malaysia and Pakistan 2006.
• ADB & OECD Anti-Corruption Initiative for Asia-Pacific: Curbing Corruption in Public Procurement in Asia and the Pacific 2006.

Environment, Natural Resources and Extractive Industry

• The Bertelsmann Foundation: Transformation Index - Indonesia 2010.
• The Jakarta Post: 'Graft undermines conservation efforts', 19 November 2010.
• Reuters: 'Graft could jeopardize Indonesia's climate deals', 17 September 2010.
• Transparency International: Global Corruption Report 2009.
• The Jakarta Post: 'Court lengthens sentences for two legislators', 4 April 2009.
• The Bertelsmann Foundation: Transformation Index - Indonesia 2006.
• AntiKorupsi.org: 'Don't write off forestry firm's debt', 3 October 2006.
• The World Bank, East Asia Poverty Reduction and Economic Management Unit: Combating Corruption in Indonesia. Enhancing Accountability for Development 2003.
• The Rainforest Foundation: FSC in Indonesia Obstacles and Possibilities.

Public Anti-Corruption Initiatives Sources

• The World Bank & IFC: Doing Business 2011.
• Jakarta Globe: 'Presidential Decree Will Tackle Graft', 7 April 2011.
• Jakarta Globe: 'New Corruption Bill Covers Private Sector, Foreigners', 16 March 2011.
• US Commercial Service: Doing Business in Indonesia: A Country Commercial Guide for US Companies 2010.
• The Bertelsmann Foundation: Transformation Index - Indonesia 2010.
• Freedom House: Freedom in the World - Indonesia 2010.
• Freedom House: Countries at the Crossroads - Indonesia 2010.
• Asian Human Rights Commission: 'INDONESIA: Lack of effective witness and victim protection', 18 February2010.
• Freedom House: Freedom in the World - Indonesia 2009.
• Global Integrity: Indonesia Country Report 2009.
• Transparency International: Global Corruption Report 2009.
• Jakarta Globe: 'Indonesia Passes 'Ambiguous' Anti-Corruption Court Bill', 30 September 2009.
• Transparency International: Global Corruption Report 2008.
• Global Integrity: Indonesia Country Report 2008
• The Sydney Morning Herald: 'Soeharto's dark shadow disrupts corruption meeting', 2 February 2008.
• The Strait Times: 'Jakarta's new graft busters swing into action', 4 January 2008.
• Indonesia Corruption Watch: 'KPK to prioritize cases in '08 with strong evidence', 4 January 2008.
• Transparency International Indonesia: 'RI needs UN assistance to recover stolen assets', 30 January 2008.
• Citynet and Asian Development Bank: E-Governance in Citynet Member Cities 2007.
• Komisi Pemberantasan Korupsi Republik Indonesia - Wujudkan Indonesia Bebas dari Korupsi: Fast-tracking Anticorruption Management 2007.
• ADB & OECD Anti-Corruption Initiative for Asia-Pacific: Curbing Corruption in Public Procurement in Asia and the Pacific 2006.
• World Bank: Rural Investment Climate Assessment (RICA) - Revitalizing the Rural Economy 2006.
• Transparency International: Curbing Corruption in Public Procurement - Experiences from Indonesia, Malaysia and Pakistan 2006.
• Indonesia Corruption Watch: 'Protecting whistle-blowers in corruption cases', 28 August 2006.
• The World Bank, Bhargava and Bolongaita: Challenging Corruption in Asia - Case Studies and Framework for Action 2004.

Private Anti-Corruption Initiatives Sources

• Reporters Without Borders: Indonesia Country Report 2010.
• Reporters Without Borders: Press Freedom Index 2010.
• US Department of State: Human Rights Report - Indonesia 2010.
• The Bertelsmann Foundation: Transformation Index - Indonesia 2010.
• Freedom House: Freedom of the Press - Indonesia 2010
• Freedom House: Freedom of the Press Index 2010.
• Freedom House: Freedom in the World - Indonesia 2010.
• Transparency International Indonesia: 'Denpasar the least corrupt city: TII', 10 November 2010.
• Global Integrity: Indonesia Country Report 2009.
• Freedom House: Freedom in the World - Indonesia 2009.
• Jakarta Globe: 'Raise Reporters’ Wages, Cut Out ‘Envelope Journalism,’ AJI Says', 28 May 2009.
• Freedom House: Freedom in the World - Indonesia 2008.
• Transparency International: Transparency Watch (October 2007).
• Freedom House: Countries at the Crossroads - Indonesia 2006.
• World Bank: Rural Investment Climate Assessment (RICA) 2006.
• Partnership for Governance Reform in Indonesia: Fighting Corruption - From Aceh to Papua 2006.
• Transparency International: Global Corruption Report 2005.
• The World Bank, Bhargava and Bolongaita: Challenging Corruption in Asia - Case Studies and Framework for Action 2004.