World Loses Rp36,000 Trillion Annually Due to Corruption

Corruption inflicts enormous economic damage, costing the world tens of thousands of trillions of rupiah each year. The practice manifests in various forms, from illicit financial flows and placing assets in safe havens to the abuse of public procurement. Every year, the world loses US$2 trillion, or approximately Rp36,000 trillion (at an exchange rate of US$1 = Rp18,000), due to illegal financial flows. Significant losses also arise from assets placed in offshore financial centres, or safe havens, with estimates ranging from US$5.6 trillion to US$32 trillion. The risk of corruption also looms over the global government procurement market, which is valued at around US$13 trillion, equivalent to 30 per cent of total public spending. Meanwhile, tax avoidance and evasion practices cost countries an estimated US$500-600 billion annually from corporate sources. These figures were presented by Sarah Lister, Co-Director of the Governance, Rule of Law and Peacebuilding Hub at UNDP, during the International Anti-Corruption Forum (IACF) 2026 in Seoul, South Korea, on Friday (3/7/2026). “Corruption erodes development financing resources. Funds that should be used for infrastructure, education, health, and public services instead flow out illegally, hindering development,” Lister stated. She added that despite rampant corruption, measuring its level remains a major challenge because corrupt practices are typically conducted covertly, are closed, and are difficult to detect directly. Therefore, strengthening governance, transparency, and integrity systems is needed to ensure development financing is not continuously eroded by corruption. At the same event, Jung Il-yeon, Chairperson of South Korea’s Anti-Corruption and Civil Rights Commission (ACRC), reminded attendees that corruption is not merely a matter of financial loss but robs society of its fundamental rights. According to him, every act of corruption means the loss of opportunities for children to receive an education, patients to get healthcare, and communities to enjoy a more decent life. He added that corruption not only causes economic waste but also destroys trust, which is the most important asset in a society. The loss of public trust can create vulnerability for state institutions, the business world, and social life as a whole. The impact is extremely costly. World Bank Group data shows that businesses and individuals pay more than US$1 trillion in bribes annually. Meanwhile, Transparency International estimates that corruption costs developing countries around US$1.26 trillion per year, an amount sufficient to lift approximately 1.4 billion people living on US$1.25 per day out of poverty for six years. Corruption remains rampant in Indonesia, causing significant state losses. Indonesia Corruption Watch (ICW) recorded 364 corruption cases with 888 suspects throughout 2024, with disclosed state losses reaching Rp279.9 trillion. ICW reports from 2014 to 2023 noted total state losses from corruption nationally exceeded Rp291.5 trillion. The persistently high level of corruption has worsened Indonesia’s corruption perception. Transparency International Indonesia (TII) recorded that Indonesia’s Corruption Perceptions Index (CPI) score fell to 34 in 2025 from 37 the previous year, causing its ranking to drop from 99th to 109th out of 180 surveyed countries. Within ASEAN, Indonesia even trails Timor Leste and Vietnam. The worsening index could diminish Indonesia’s attractiveness to investors, making it difficult for the country to compete for foreign capital.