The document discusses the causes and factors of corruption in Indonesia, including individual greed, lack of leadership, and cultural values that are tolerant of corruption. It analyzes how corruption occurs in different sectors such as permitting, taxation, budgeting, and procurement. Finally, it examines the massive negative impacts of corruption and some strategies that could help solve the problem, including improving accountability, transparency, and legal enforcement.

1. Company
LOGO
The causes of corruption
Phenomenon In Indonesia
Prepared by :
Junriana, Raja Abumanshur Matridi, Muhammad Farid,
Shahril Budiman, Sri Ambarinah

2. Issues
Public Policy | Group Case Study
Why Corruption?
Factors of Corruption ?
Effects of corruption ?
How to Solve Corruption ?
Conclusion

3. Hot Tip Why Corruption?
Public Policy | Group Case Study
 What is Corruption?
 Corruption (Latin language: theverb corruptio of
corrumpere = Rotten,Damaged,Destabilizing,Di
stort and Bribing)
 Corruption is the abuse of entrusted power for
private gain (transparency international)
 Corruption appears to take place when it satisfies a
certain formula. According to Robert Klitgaard (1998),
 Monopoly of power, when combined with discretion and
absence of accountability, will result to corruption.
 Thus, the formula: C=M+D-A, where C is corruption, M
is monopoly, D is discretion and A is accountability
Company Logo

4. Fast Fact
Public Policy | Group Case Study
•CPI 2007 score (2.3),
• 2008 (2.6), 2009
INDONESIA (2.8), 2010 (2.8). 2011 (3.0)
• Perceptions of Bribery Index 2011:
Corruption In business -
picture of public service 7.1
Score: 0-10,
Public Sector the higher score,
Integrity Survey more bribe
2007 (5.53)
2008 (6.84) 2009 (6.50), 2010
(5.42) and 2011
(6.31)
Human Development Index
(HDI) by UN, in
2008 (.588), 2009(0.593),
2010 (0.600), 2011 (1.0)
Doing Business (measurement
ease of doing business in Indonesia)
Political and 2012 ranks 129 among 183 countries
Economic Risk Consultancy
(PERC)
The most corruption
country among
16 countries Invest in
Asia Pacific Company Logo

5. Factors of Corruption ?
Public Policy | Group Case Study
1 2 3
THE INDIVIDUAL ASPECTS
ASPECTS OF THE PLACE INDIVIDUAL
OF ACTORS
ORGANIZATION AND ORGANIZATIONAL
ASPECTS OF BEING
•Human greed
•Lack of exemplary
•Moral of less powerful
leadership stance •The values ​in the society is
•Insufficient income
•The absence of a true culture conducive to corruption
•The urgent necessities of
of the organization •Corruption can be caused by
life
•Proper system of the culture of society.
•Consumptive lifestyle
accountability in government •The public is less aware
•Lazy or unwilling to work
agencies lack adequate of the main victims of
•Religion is not applicable
•Weaknesses of management corruption
control systems •The public is less aware
•Management tends to cover of when he was involved in
up corruption in the corruption
organization •The public is
less aware that corruption will
be
prevented and eradicated if pe
According to the Financial and Development Supervisory Agency ople take active
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in the bookentitled "Anti-Corruption Strategy,“ •Aspects of legislation
The causes of corruption include:

6. Map of Corruption in Indonesia
Public Policy | Group Case Study Source : Indonesia’s Corruption Eradication Commission
1. Deviation
1. Abuse of permitting
procurement procedures
1. Deviation from the → Improved system of authority Encouraging e-
target → Audit Planni 2. There is no single data base prorecruitment, →
ng → Integrated database establishment of the
2. Extortion to 3. Abuse of the tax payment ProcurementServices Unit,
taxpayers → Transpar → Improved system Self-
ency and accountabili of admission setting price estimates,
whistleblower
ty of the tax system
system,
3. Improved data transparency and
manipulation system Tax Non Tax
receipts
accountability system
receipts procurement.
Special and
Public Expenditures
1. Income on Goods and
Allocation Services
Regional Revenue Fund 1. Deviations desig
and
Social
nation
The
Expenditure Budget: Regional Assistant 2. embezzlement
abuse authority, charges / Aid 3. fictitious
embezzlement
→ Improvements
2. reporting not
standard system budgeting,
1. Local regulations do not refer to
3. allocation the regulations Legislation → strengthening
not transparent Deregulating the regional rules Legislative control
→ Repair the system 2. Income enforcement officers → Company Logo

7. Effects of corruption ?
Public Policy | Group Case Study Source : Anti Corruption Study | Paramadina University
Demoralization
Massive Impact
of Corruption
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8. How to Solve Corruption ?
Public Policy | Group Case Study
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9. Public Policy | Group Case Study Source : Indonesia’s Corruption Eradication Commission
STAKEHOLDERS
PERSPECTIVE
REDUCE
Prevention CORRUPTION Repression
Build culture Catalyze Triggering
Gain public Catch
of less public sector law
trust
PERSPECTIVE
Big Fish enforcement
corruption reform
INTERNAL
Socialization, c Legislation Study, Audits, R Supervise &
Proactive & Operations
eviews, examin coordinate law
ommunication, & ations, recomen
strong with other enforcement
education Regulation dations investigation agencies agencies
Complaints, intellige
nts, & investigation
LEARNING & GROWTH
Infrastruc- FINANCIAL
Multi- ture & PERSPECTIVE
Transpa- Right Internal
PERSPECTIVE
rency disciplinary Strong
resources audits
team work Investiga-
tion Obtain &
Utilize
budget
Create unique productivit Collective effectively
KPK culture Recruitment Training leadershi
y
p

10. Corruption Eradication Strategies
Public Policy | Group Case Study
 Total solution, systematic, comprehensive and integrated.
 Includes preventive and repressive efforts as well as public
participation + international cooperation.
 Executed simultaneously and continuously in the
short, medium, and long term.
 Short term strategy  strategies that are hoped to
produce swift results/effects in corruption eradication.
 Medium term strategy strategies that systematically
prevent corrupt acts  Improvements to administration
systems and state governance management
 Long term strategy  targeted at changing the public’s
perception toward corruption and abolish cultural
permissiveness towards corruption

11. Conclusion
Public Policy | Group Case Study
CORRUPTION ROBS OUR RIGHTS TO LIVE IN PROSPERITY

12. Company
LOGO
THANK YOU