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Kai Hauerstein (LL.M.)

🚀The Legal Business Environment in Indonesia

1y ago

Lawyer & Management Consultant with 20+ years in Development Cooperation. I write about Indonesia's Legal Business Environment to help professionals and businesses make informed decisions.

The Legal Business Environment in Indonesia: Assessing the Degree of Corruption- Results from the 2023 Corruption Perception Index

Yesterday's essay discussed the effect of corruption on the Rule of Law. The RoL-Index uses the findings of the Corruption Perception Index as one of its indicators.

This essay discusses the perceived degree of corruption as measured by the Corruption Perceptions Index.

Transparency International published the Corruption Perceptions Index (CPI) for 2023 on January 31, 2023. The index reflects data and expert assessments collected during 2023. Based on expert assessments and business surveys, it ranks 180 countries by their perceived levels of public sector corruption.

Indonesia's 2023 Score and Ranking

Indonesia's Corruption Perception Index (CPI) score for 2023 is 34 out of 100, maintaining the same score as the previous year. However, the country's global ranking dropped to 115th place out of 180 countries. Source: CPI Index: Indonesia 2023
Graph: Indonesia's CPI score and rank over the last ten years

Source: CPI

Interpretation and Key Takeaways: Corruption is Getting Worse

With a score of 34, Indonesia falls at the low end of the Corruption Perception Index (CPI) scale (with 0 representing the worst and 100 the best). Note that the downward-facing blue slope (CPI score) represents increased perceived corruption, not a decline. This score indicates widespread corruption, negatively impacting government operations, business activities, and public services, creating an unstable environment for businesses and citizens. The score remained the same as in 2022, suggesting that the country's efforts to combat corruption have stagnated in 2023, with no notable improvement over the past year.

The trend over the last ten years shows significant improvement in 2015 (around 88th position) and a steady decline after that, with Indonesia reaching its worst rank at 115th in 2023.

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