Indonesian Political, Business & Finance News

Indonesia Still Rated High for Corruption

| | Source: TEMPO
TEMPO Interactive, Jakarta: Indonesia is still ranked as one of the most corrupt countries in the world.

Despite a slight improvement in the Corruption Perception Index, based on 2006 data from Transparency International, Indonesia was still ranked 135th out of 136 countries.

Todung Mulya Lubis, Head of the Managing Board of Transparency International Indonesia, said that in general, Transparency International measured that international, regional and national waves of corruption eradication have significantly affected the business climate in Indonesia.

“However, foreign entrepreneurs still perceive Indonesia as being a heaven for corruption,' he said yesterday (02/27) in Jakarta.

The Corruption Perception Index shows the general public’s understanding of the level of corruption and the commitment of the central or regional government in eradicating corruption.

The higher the index rate - up to 10 - the lower the amount of corruption acts that occur, and vice versa.

Indonesia’s rating in 2006 was 2.4, higher than the 2005 rating of 2.0

Todung said that Transparency International also concluded that a fear of corruption culture could affect the growth of Indonesian economics.

The intensive level of corruption eradication in Indonesia has made state officials reluctant to become a project head.

As a result, the implementation of the government's projects has been hindered.

“There is a theory that corruption eradication in the initial years creates anxiety,” said Todung.

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Tags: business
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