Looking at the state of corruption in Indonesia, while looking at the local cases in combating it.

1. Jakarta, 6 July 2011Curbing Corruption While Promoting Business & Economic Growth By: Wijayanto wijayanto@paramadina.ac.id

2. Among the Most Corrupt Country? What is Indonesia’s Main Challenge as a Nation? (Kompas, 2010) Source: Corruption Perception Index, Transparency International, 2010

3. Encouraging Development..... CPI Change (2003 – 2010) Over the last eight years, Indonesia’s CPI has shown the most encouraging development, while Malaysia has decreased continuously; Indonesia Malaysia 3 Source: Corruption Perception Index, Transparency International, 2010 Source: Corruption Perception Index, Transparency International

4. Press Freedom Bias? Corruption Perception Index , Indonesia (1995 – 2009) Press Freedom Bias?? Establishment of KPK Source: TI, Freedom House, and “KorupsiMengorupsi Indonesia”, Wijayanto & RidwanZachrie

6. This phenomenon is not unique. Globally, Police, Legislative and Political Party are among the most corrupt institution;

7. However, in many countries, the judiciary system is relatively less corrupt;Source: Transparency International

8. From Whom We Should Learn? Source: Transparency International Indonesia, 2010

10. Publish cost and time line;

11. Established task force to managed this process;Firing or removing public officials who are not inline with government’s agenda to improve public service quality; Simple initiatives with huge impact Source: Transparency International Indonesia Website (Jokowi and HerryZudianto) and Various Sources

13. Improving business climate & governance is inline with reducing corruption;

14. Klitgaard Theorem:

15. Clear rule of the game in business will reduce discretion, monopoly and improve accountability Best C D M A CPI Score Accountability Monopoly Discretion Corruption Best Worst Ease of Doing Business Source: Transparency International 2009; World Bank 2010

16. Ease of Doing Business: The Ranking Source: World Bank, Ease of Doing Business 2010 Ease of Doing Business (Total Ranking) Cross Border Trading Building Permit Protecting Investor

17. Ease of Doing Business: The Ranking Source: World Bank, Ease of Doing Business 2010 Starting Business Getting Credit Registering Property In Indonesia, Starting Business, Getting Credit and Registering Property are rather difficult and complicated. In the 6 main ASEAN economies, we are only better than the Philippines

18. Ease of Doing Business: The Ranking Source: World Bank, Ease of Doing Business 2010 Closing Business Paying Taxes Enforcing Contract Indonesia is behinds ASEAN’s peers in term ease of paying taxes and enforcing contract. Serious improvement should be done if we would like to keep our economy competitive;

20. ....tax revenue only account for 11% of GDP (the lowest in the six main ASEAN economies);

21. In part, it is because the lack of inefficient and complicated tax collection procedure, a possible source of corruption;Tax Misery Index (2009) Tax Revenue / GDP (2009) Source: Heritage Foundation & Forbes: Tax Misery Index

22. Thank You