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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