was ranked equal to 118 as the least transparent out of 174 countries, with a score that
reached 32 (on a scale of 0-100). In particular, most of the corruption cases were
dominated by bribery cases (40,98 per cent) and goods and/or services procurement (37,
81 per cent) (Indonesian Corruption Eradication Commission, 2012). The phenomenon of
corruption plays a large role in Indonesian domestic politics, with political groups
attempting to use such issues to undermine their political opponents. Corruption is so
widespread and corruption is a pressing concern and signicant constraint for foreign
businesses in Indonesia. The Indonesian Government recognizes that corruption
causing an impediment to foreign investment and a huge cost to the national economy.
Corruption undermines democratic institutions, slows economic development and
contributes to governmental instability. The international aspects of bribery and
corruption are related to Indonesian businesses.
Several regulations concerning corruption eradication
Notwithstanding the aforementioned condition, it is of course important to review the
existing provisions of several Indonesian regulations concerning the eradication of
corruption and how to overcome such activities by fostering and enhancing the role of
the private sector in Indonesia. The Indonesian Government has enacted several laws
• Indonesian Law Number 31 of 1999 on The Eradication of Corruption.
• Indonesian Law Number 20 of 2001 on The Amendment to Law Number 31 of
1999 on the Eradication of Corruption.
• Indonesian Law Number 30 of 2002 on The Eradication Corruption Commission.
• Indonesian Law Number 46 of 2009 on Corruption Criminal Court.
Besides the aforementioned laws, there are also several regulations from the President to
fostering the eradication of corruption such as Presidential Regulation Number 55 of 2012.
Corruption is the act of doing something with an intent to give some advantage
inconsistent with ofcial duty and the rights of others; a duciary’s or ofcial’s use of a
station or ofce to procure some benet either personally or for someone else, contrary
to the rights of others (Garner, 2009). Transparency International had mentioned the
corruption is a major threat facing humanity. Corruption destroys lives and
communities, and it undermines countries and institutions. It generates popular anger
that threatens to further destabilize societies and exacerbate violent conicts.
Corruption is dened by the World Bank and Transparency International as the misuse
of public ofce for private gain (The World Bank, 1997). As such, it involves the
improper and unlawful behavior of public service ofcials, both politicians and civil
servants, whose positions create opportunities for the diversion of money and assets
from government to themselves and their accomplices. Bribery cases are the most
obvious evidence of corruption. However, the consequences of corruption are more
pervasive and profound than these bribes suggest. Corruption diverts leads funding,
resulting in services of poor quality or that which are simply unavailable.
The denition of corruption crime stated in Article 2 Indonesian Law Number 31 of
1999 as described as follows:
Anybody who illegally commits an act to enrich himself or another person or a corporation
which may cause loss to the state nance or state economy, shall be sentenced to life
role of private