While hard data on corruption is difficult to collect, corruption in Indonesia is clearly seen through public opinion, collated through surveys as well as observation of how each system runs.[1]
Transparency International's 2023 Corruption Perceptions Index, which scored 180 countries on a scale from 0 ("highly corrupt") to 100 ("very clean"), gave Indonesia a score of 34. When ranked by score, Indonesia ranked 115th among the 180 countries in the Index, where the country ranked first is perceived to have the most honest public sector.[2] For comparison with worldwide scores, the best score was 90 (ranked 1), the average score was 43, and the worst score was 11 (ranked 180).[3] For comparison with regional scores, the highest score among the countries of the Asia Pacific region[Note 1] was 85, the average score was 45 and the lowest score was 17.[4]
There are two key areas in the public sector in which corruption in Indonesia can be found. These are the justice and civil service sectors. Corruption within the justice sector is seen by its ineffectiveness to enforce laws, failure to uphold justice, hence undermining the rule of law. The areas of corruption within this sector include the police and the courts. In the 2008 Public Sector Integrity Survey, the Supreme Court ranked the lowest in integrity in comparison to the other public services in Indonesia.[5] The courts were viewed to make decisions unfairly and have high unofficial costs.
Evidence of corruption within the civil service comes from surveys conducted within the sector. Some surveys found out that almost half were found to have received bribes. Civil servants themselves admit to corruption.[1]
In January 2012, it was reported that Indonesia has lost as much as Rp 2.13 trillion (US$238.6 million) to corruption in 2011. A study conducted by Indonesia Corruption Watch, a non-profit organization co-ordinated by Danang Widoyoko, said that embezzlement accounted for most of the money lost and that “government investment was the sector most prone to graft.”[6]
Companies are concerned about red tape and widespread extortion in the process of obtaining licences and permits, and they often faced demand for irregular fees or concessions based on personal relationships when obtaining government contracts. Companies have also reported regular demand for cash payments and expectations for gifts and special treatments by Indonesian officials.[7]
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