Bribery In Indonesia

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Theoretical Backgrounds Bribery is perhaps the most traditional form of corruption that occurred on a routine basis throughout the business world. According to the World Bank (2004), bribes paid out by businesses, and other parties cost them above one trillion dollars a year, more than three percent of the total estimated world economy. Companies are not the only ones that involve in bribery, of course, but businesses have been singled out as one of the leading suppliers of the bribes that are paid today to corrupt government officials (Transparency International, 1997). Moreover, arranging, paying, and monitoring bribes are a time-intensive activity, so bribery also imposes massive non-monetary costs on businesses. Bribery is also increasingly…show more content…
This country has a larger Muslim population than any other country in the world with 88% of their population practicing the Muslim faith. Islam, the religion of most embraced by the Indonesian people, openly opposes to any condition of the violation of good ethics, such as bribery and do support the efforts to eradicate bribery. Surprisingly, in countries where the largest number of highly religious people, bribery is widespread. Still and all, this predominantly Muslim state should be very embarrassed by the fact that Indonesia is still measured one of the world's most corrupt countries among the ten most corrupt countries listed in the 2012 Corruption Perceptions. Even though Indonesia has some laws and regulations that could be used to annihilate bribery, the country has largely unsuccessful to overcome this issue. In 2016, based on annual Corruption Perceptions Index, Indonesia's ranking worse to 90th from 88th in 2015 (Transparency International, 2017). According to World Gallup Poll, in 2012, 88% of Indonesian citizens said corruption was widespread in the country's government (Crabtree,…show more content…
The large-scale bribery practices experienced by companies in many sectors and regions, however, led many companies to tolerate bribery as long as it secures their business and the profit margin still reveals a real gap. According to Corruption Eradication Commission (KPK) statistics, around 51% of corruption cases scrutinized by the commission engaged in bribery, which also exhibited a high supply and demand of bribery in Indonesia (Prabowo, 2016). As described by a survey, construction is mostly at risk of bribery, followed by mining and trade sectors (Thohary, Suyatmiko, & Yazid, 2015). In Indonesia, bribery is a common practice because it falls under a gray zone to some degrees. Many business people undertake bribery standard practice even though it is formally illegal. Gratification, giving hospitality, expensive dinners and entertainment are quite normal business practices in Indonesia. Individuals involved in bribery believe that their actions were something different from criminal conduct like murder, battery, rape, assault, terrorism, kidnapping, arson, gang violence, and domestic violence. On the top of that, many people pay bribes because they think that it is not a big deal and everyone else is still doing it (Lawler,
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