Editing Economy of Indonesia (section)

===Embezzlement and corrupt bureaucracy===
[[File:KPKHQ.jpg|thumb|As the result of a revised law in 2019, the anti-graft agency ([[Corruption Eradication Commission|KPK]]) has been viewed more negatively by the public.]]
[[Corruption in Indonesia|Corruption is pervasive]] in the Indonesian government, affecting many fields that are central to barrier the country's economic development from local governments, the police, the private sector even various ministerial institutions which are close to the president.<ref>{{cite news |last1=Karmini |first1=Niniek |title=Indonesia's social minister named suspect in million-dollar bribery case |url=https://www.smh.com.au/world/asia/indonesia-s-social-minister-named-suspect-in-million-dollar-bribery-case-20201206-p56l12.html |access-date=6 December 2020 |publisher=The Sydney Morning Herald |date=6 December 2020}}</ref><ref>{{cite news |last1=Connors |first1=Emma |title=Indonesian cabinet minister arrested in corruption probe |url=https://www.afr.com/world/asia/indonesian-cabinet-minister-arrested-in-corruption-probe-20201125-p56hu0 |access-date=25 November 2020 |publisher=The Australian Financial Review |date=25 November 2020}}</ref> It is related to problems of human capacities and technical resources remains a major challenge in merging effectiveness and integrity in public administration, especially in regencies and cities.<ref>[http://www.oecd.org/gov/ethics/integrityframework-for-public-investment-9789264251762-en.htm OECD (2016), Integrity Framework for Public Investment] ''OECD Publishing''</ref> A 2018 [[World Economic Forum]] survey reports that corruption is the most problematic issue regarding doing business in Indonesia, as well as inefficient government bureaucracy policies. The survey also showed that 70% of entrepreneurs believe that corruption has grown in Indonesia, while low trust in the private sector is a major obstacle to foreign investment in the country.<ref>[http://www3.weforum.org/docs/GCR2017-2018/03CountryProfiles/Standalone2-pagerprofiles/WEF_GCI_2017_2018_Profile_Indonesia.pdf Most problematic factors for doing business in Indonesia], {{webarchive |url=https://web.archive.org/web/20171118170050/http://www3.weforum.org/docs/GCR2017-2018/03CountryProfiles/Standalone2-pagerprofiles/WEF_GCI_2017_2018_Profile_Indonesia.pdf |date=18 November 2017 }}, ''World Economic Forum''</ref>

In 2019, a [[2019 Indonesian protests and riots#Revision of Corruption Eradication Commission Law (RUU KPK)|controversial bill]] regarding the anti-corruption body ([[Corruption Eradication Commission]] (KPK)) reduced the commission's effectiveness in tackling widespread corruption problems and stripped its independence was passed despite massive protests across the country.<ref>{{Cite web|url=https://coconuts.co/jakarta/news/parliament-ratifies-controversial-revisions-to-law-governing-indonesias-corruption-eradication-commission/|title = Parliament ratifies controversial revisions to law governing Indonesia's Corruption Eradication Commission &#124; Coconuts Jakarta|date = 17 September 2019}}</ref><ref>"Suharto with a saw: Indonesia is lurching back into authoritarianism with Joko Widodo at the helm", (October 2020) ''The Economist''</ref> There were 26 points in the revised law that crippled the commission and might further undermine efforts to eradicate corruption in Indonesia.<ref>[https://jakartaglobe.id/context/corruption-not-kpk-the-main-obstacle-to-investment-in-indonesia-antigraft-agency-says Corruption, Not KPK, the Main Obstacle to Investment in Indonesia, Antigraft Agency Says], 25 September 2019 ''Jakarta Globe''</ref>