Corruption is the current issues happen in Indonesia since Suharto era. Besides that, corruption is undergoing in the political environment and economic environment. Corruption was one of seven per cent economic growth per annum on average over a period of 32 years, and despite its cronyism and corruption. (Aimbaruddin, 2011)
There are some reasons and analyses which forms of corruption are manifest in Indonesia. First of all, low income and poverty can cause corruption to be happened in Indonesia. In 2010, Indonesian had been found that around 31.02 million poor people suffered from poverty, with 15 million of them living in Java. On the other hand, largest percentage of underprivileged people could be found in Papua Province with 36%, West Papua with 34.88% and Maluku with 27.74%. (Denton, 2014) Due to the low income in Indonesia, corruption and extortion has been spreading over all levels of the government such as in the Immigration of Indonesia in the tourism industry. This case happens when Jakarta immigration officers at Indonesia passport control accusing travelers of irregularities on their tourist visa in hopes for $10.00 cash as a “donation”. The low income of the officers causes them to bribe tourist in the immigration. (ETN Global Travel Industry News, 2013) Prime Minister John Key from New Zealand said that Indonesia corruption was always a challenge for New Zealand businesses because it was not something they were used to dealing with because he plan to boost trade with Indonesia such as in non-agriculture areas of education, geothermal energy, tourism and aviation. (Levy, 2012)
Moreover, abuse of monopoly function of public sector also one of the factor lead to corruption happened in Indonesia. This happened on Ru...
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... as transfer pricing to exacerbated the losses. In addition, the bribes go to the police to manipulate evidence or even to sell seized illicit timber back to illegal loggers. Therefore, Forestry Ministry officials have taken steps to improve timber reporting and tracking systems, but they have to contend not only with shady dealings in the private sector but to protect the interest within their own ministry. Recently, UK amending its Lacey Act which enacts laws to prohibit trafficking in these illicit products sells between UK and Indonesia. Furthermore, the European Union immediately passes pending legislation that would require a certification of legality for wood products when Indonesia enters European markets. By doing this, Indonesia’s government and international trading partners can together halt the corruption in forestry industry. (Human Rights Watch, 2009)
Serpico (1973) is a movie that reveals the true story of Frank Serpico who was the only honest cop in the New York police sector at his time. The film shows the realistic view of the corruption that was evidenced in the New York police and highlights the character of Frank as being honest and courageous. Although he started as an inexperienced cop, he later worked as an undercover officer and was determined to bust all the criminal activities especially the drug dealers and pushers. Unlike the other cops, Serpico refused to take any bribes from the wrongdoers. More so, he felt that the other officers were doing wrong by accepting bribes and wanted to expose the situation. The other officers were so corrupt that they collected more money through bribes than the salary they earned, a situation that did not please Serpico. His strong stand concerning corruption made his friends turn against him, placing his life in danger. The anti-corruption efforts of Serpico jeopardized his life at the hands of his colleagues. He was later transferred to the Narcotics Squad where he was shot by a drug dealer after his partners betrayed him by failing to support him. The cop was then rushed to hospital. The shooting made Frank deaf since it affected the brain, rendering
When dealing with corruption, first question to ask or to clarify is what corruption is. NSW Research (2002) describes corruption anything from gaining materialistically by virtue of position (for eg. getting a special discount at stores) to engaging in ‘direct criminal activities’ (eg. selling drugs). Newburn (1999) believes that there is a thin line between the definition of ‘corrupt’ and ‘non-corrupt’ activities as at the end, it is an ethical problem. For common people, however, bribery generalises corruption.
Politicians many times have been found guilty of corruption. They use unethical techniques to get higher positions in an election, to gain more money, votes or to lay hands on ungotten wealth. Corruption exists in the police force, in law and order and even in the management of the Olympic Games.
Corruption is something that is motivated by greed and fraud. It’s a very threatening personality that controls and destroys people’s lives and makes them the kind of person other people don’t want to associate with.
Death and decay often convey corruption within a story. The use of this particular imagery allows one to make a connection between the natural world and the nature of people. Throughout Hamlet, a play, set in Denmark, which was written in the early seventeenth century by William Shakespeare, there are several instances where one sees decay depicting corruption. Though this play is filled with massive images of decaying nature, it is also filled with images of nature in its beautiful state. Because Hamlet portrays decaying and developing nature, it shows one that it is possible to maintain a sense of self in a world that strives on corruption.
Corruption consists in the illegitimate agreement between a corruptor and a corrupted, in which they abuse of their public power in order to obtain personal benefit. Bribery and corruption is something that has been going on for years. According to Allen, “officials perceive themselves as immune to any penalties for demanding and receiving bribes” which she states that it is one of the main reasons for bribery and corruption in underdeveloped countries. According to Transparency International, an organization committed exclusively to end corruption, three of the most corrupt countries in the world are Somalia, North Korea and Afghanistan. This does not mean that corruption is only seen in underdeveloped countries. In international business, corporate employees often find themselves dealing with corruptors in foreign countries and, in most cases, they will give in.
The runaway corruption in the country harms the business environment and causes collapse of various established institutions and industries.
There are countries that are not as lucky as America, where people have their rights taken away from them, like in Equatorial Guinea. Equatorial Guinea has a very corrupt government. It has been said that the voting has been rigged so that the president will win the election as many times as he wants. Most of the power is in the executive branch, so the president has most of the power of the country and no one can say anything about what he wants to happen. He president will harass the opposing parties so that he will win (Williams). In the article Equatorial Guinea HRW (Human Rights Watch) says, “Corruption, poverty, and repression continue to plague Equatorial Guinea under President Teodoro Obiang Nguema Mbasogo, who has been in power since 1979”. The “...per capita gross domestic product...” for Equatorial Guinea is $30,000, but yet most of the people live in poverty. The “...Democratic Party of Equatorial Guinea (PDGE)...” rule the political system, you could say that it is a monopoly. The president of Equatorial Guinea will have a say in court cases. The court cases that are sensitive get brought to him and he gets asked what he wants to do (Equatorial...). We should care about Equatorial Guinea because arrest without reason, torture captives and give little rights to women.
According to A Report issued by the Justice Policy Institute, it showed that in 2002 the number of African American males in prison have grown to five times the rate it was twenty years ago (“Prison”). Many have speculated that reasons the population of African Americans in prison are so high is that the Justice System is corrupted and shows that Racism is alive and well. In some cases they may have been guilty, but there should never be a case were a citizen was striped from their rights and accused of a crime they didn’t commit or was protecting themselves from being killed. The Justice System is corrupted towards the African American race because they are given poor legal representation, death penalty with insufficient evidence and longer sentences than any other races that statistics can show.
Level of corruption in Indonesia is getting higher each year and spreading throughout Indonesia. In 2013, Indonesia’s position on Corruption Perception Index is 114th among 177 counties (RI Improves Ranking On Global Corruption Perception Index). According to Transparency International, Indonesia score of corruption was 32 out of 100 which 0 means highly corrupt and 100 means clean from corruption. There are many people who work for government found corrupting government funds. Former president of Indonesia, Soeharto, took state funds around $15 billion to $35 billion for his family needs (“Corruption Continue to Plague in Indonesia”). In addition, one of the politicians in Indonesia accused former president of Indonesia, Susilo Bambang
Political instability and corruption is a major impact on growth. The rule of law and appropriate enforcement is needed to create an established system of honesty and loyalty in society. Corruption is people acting in an official capacity of trust and responsibility misusing their position for private gain. When there is this sense of corruption many things are affected. Corruption discourages investment due to lack of business ethics.
This essay will attempt to explore the relationship between the two from the definitions, causes, consequences and the solutions. Corruption can be defined as the abuse of public power for private gain. (World Bank, 2004) Corruption is attracting a lot of attention around the world, and is a growing international and regional concern. According to Corruption Around the world (Tanzi, 1998), in its end-of-year editorial on December 31, 1995, The Financial Times characterized 1995 as the year of corruption.
In simple terms Public Corruption can be defined as the misuse of public office for private gain.Corruption is an outcome and reflection of a country’s economic,legal,cultural and political institutions. Transparency International(2005,2008) found that more than 65% of Indians had a first hand experience of paying bribes and nearly 45% used contacts to get job done.Institutionalised Corruption has long been prevalent in India.Big Business and individuals dictate bureaucratic norms by breaking law,paying off public servants just to gain access to elements of governance.
The existence of bribery and unethical behavior is rampant in the world market and may not change overnight. The question of bribery has been distilled in business literature as a question of ethics. In this situation at the airport with the customs officer, it is important to distinguish between business ethics and personal ethics. In a business ethics situation, the Foreign Corruption Practices Act would prohibit offering any bribe to the custom office – for example to free a shipment of goods that was lost in red tape (Pitman & Sanford, 2006). Most companies also have policies against bribery as well. In this situation, however the main issue at hand is that of personal ethics. When in a situation where your company is unknown and there is no business being conducted, normal business ethics and laws (including FCPA) do not apply only personal ethical standards.
Montesh, M. (n.d.). Conceptualizing Corruption: Forms, Causes, Types and Consequences. Retrieved May 4, 2014, from