Thursday, 11 September 2025

TOWARD SUSTAINABLE ANTI-CORRUPTION IN INDONESIA

By KUSNANDAR & CO., Attorneys at Law – Jakarta, INDONESIA

 

Corruption remains a persistent and systemic obstacle to Indonesia’s development, deeply entrenched in both public institutions and the private sector. A recent report by legal advisory firm Kusnandar & Co, titled "Corruption at a Crossroads: Between Enforcement and Prevention," highlights a critical issue: Indonesia’s anti-corruption efforts rely heavily on enforcement and punishment, while preventive strategies are underdeveloped and underfunded.

 

Over the past two decades, law enforcement agencies such as the Corruption Eradication Commission (KPK), the Attorney General’s Office, and the National Police have pursued thousands of cases, exposing high-profile corrupt figures. However, the report points out serious limitations in enforcement efforts. Convicted individuals often return to influential positions or maintain significant wealth, suggesting a weak deterrent effect. Sentencing lacks consistency, asset recovery remains inadequate, and some prosecutions appear politically motivated. These challenges undermine public trust in legal institutions and highlight that law enforcement alone cannot eradicate corruption.

 

Kusnandar & Co stresses that corruption in Indonesia is more than just embezzlement; it is a complex, systemic problem involving bribery, extortion, abuse of authority, political patronage, and conflicts of interest, often facilitated by regulatory loopholes and informal networks. Therefore, a fundamental shift from a reactive enforcement model to a proactive prevention model is necessary for sustainable progress.

 

Preventive measures are crucial and should form the backbone of the anti-corruption strategy. These include digitalizing public services to reduce face-to-face bribery opportunities, strengthening internal controls in government and businesses, protecting whistleblowers with secure reporting channels, embedding anti-corruption education at all levels of society, and reforming regulations that grant excessive discretionary power. Currently, these systems are underfunded or insufficiently developed, leaving enforcement to repeatedly tackle symptoms rather than root causes.

 

The private sector also plays a vital role. Businesses often face pressure to engage in bribery to expedite processes or risk losing to unethical competitors. While some companies fall into corrupt practices, others suffer as victims, facing higher risks, reduced transparency, and decreased investor confidence. To counter this, Kusnandar & Co recommends implementing robust corporate compliance programs, including clear ethics codes, regular integrity training, anti-bribery policies, and secure whistleblower mechanisms. The government should incentivize or mandate such frameworks, particularly for firms involved in public procurement or operating in vulnerable sectors.

 

Institutional reform is another urgent priority. Restoring the independence of the KPK, enhancing coordination among anti-corruption agencies, instituting merit-based civil service recruitment, and conducting regular wealth audits of public officials are essential steps. These reforms demand strong political will, as they challenge entrenched interests.

 

The report concludes that Indonesia’s anti-corruption approach remains largely reactionary, responding only after violations occur instead of systematically preventing corruption. Enforcement should act as a last line of defense, not the frontline strategy.

 

Ultimately, combating corruption requires a cultural transformation toward integrity, transparency, and accountability, starting from education and extending to professional and public life. This effort must involve collaboration among government, businesses, civil society, academia, and the media. Kusnandar & Co affirms that a clean and accountable Indonesia is not utopian but a necessary legal and moral imperative. The choices made today will shape the country’s future integrity and prosperity.


K&Co - September 12, 2025

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