Indonesia Post-Suharto

Indonesia has gone through a major reform process in 1998 post of the fall of its authoritarian leader, Suharto. This reform has in some level progressed toward transformation its economic, political and social landscape of the country. However one of this reform biggest challenge today is still in its attempt to eradicating the endemic (systemic) corruption that has positioned Indonesia still as one of the most corrupt country in the region. (ref. T.I ranking) .

Demise of Suharto was seen as a promising milestone to get rid of the systemic corruption in the country but in the last fifteen years, the progress to an accountable and clean governance is still patchy.

According to The U4 (ref), endemic corruption is when a corruption has become an integrated and essential aspect of the economic, political and social system upon which major institution and processes of the states are routinely dominated and used by the corrupt groups of individuals.

This paper argues that Suharto’s legacy of Corruption, Collusion and Nepotism (KKN) has not only institutionalized structurally systemic corrupt governance but has also corroded the moral and ethics at the individual level of the nation. The elimination of corruption in Indonesia biggest challenge is both at the structural and individual level.

This paper will start with examining to what extent of corruption in Indonesia is systemic and the role of Suharto in institutionalizing it. McLeod model of Suharto’s “Franchise” of patronage system will be used to explain nature of KKN in Indonesia and how it still persist during the reform period.

Finally, we will visit the arguments of the importance of also taking account of the agency factors (not only structural approach) in formula...

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