Highlight of Corruption

History - Structural - Argumentation!

Andrie Puspitasari, Reihan Ahmad Millaudy, Jung Eun Saem, Riefqi Rafifyanta Prianda

HIGHLIGHT OF CORRUPTION - GROUP 4

Acknowledgement !

Alhamdulillahi rabbil 'aalamiin, praise the author prayed to god, who has shown his love
and guidance so that this research can be resolved properly. In the end, the book entitled
Highlight of Corruption" can be resolved properly through the support and attention from
various parties either directly or indirectly. Therefore, it is fitting on this opportunity to thank
the authors:

Corruption in Indonesia!
1. Both of our parents, which ceaselessly provide motivation and support to the author for
making this paper.
2. Ms. Eva Tantri Mahastri as Principal Junior High School High / Scope Indonesia, which
continues to provide the opportunity for her students to work and excel.
3. Mr. Bachrun Lihawa guidance in their implementation, both in the classroom and
outside the classroom in terms of technical preparation of research data.
The author was the research, it is still very much when compared to other studies. In
addition, the authors realize deep inside that "There is no ivory that is not cracked, no one
is perfect." Therefore, criticism and suggestions are fine writers from all sides. Hopefully
this research can be useful and can be used as motivation by all students and teachers.

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Content!

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Acknowledgement

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Content

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Purpose of Research

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History of Indonesia

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Government Types and Structures

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Corruption to Economic Stability

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Political Eye of Corruption

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Purpose of Research!

The purpose of research about the topic of corruption is:

1. We want to know the basic information about corruption
2. We want to investigate the problem of corruption that is happening in Indonesia.
3. We want to learn the cause and effects that happen because of corruption.
4. We want to research about the solution that has been applied to corruption in
Indonesia.
5. We want to analyze the history from the old days until now about corruption.

After we fulfil all of the research and investigation about corruption in Indonesia, the
purpose is we want to inform all the readers of our book about our investigation and
analyzation of corruption case in Indonesia, so they will know and learn the systematic of
corruption system in Indonesia, because we are trying to disassemble all of the fact of the
corruption in Indonesia, so people can face the real thing.

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History of Indonesia
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Reihan Ahmad Millaudy!

HIGHLIGHT OF CORRUPTION - GROUP 4

Timeline!

Old Order

Old Order in Indonesia's political history refers to the reign of Soekarno (1945-1968)

Seokarno giving his speech (source : google.com)

In December 16, 1945 Soekarno inaugurated as the first president of Indonesia.

1945 - 1968 many irregularities rules in Indonesia. In the reign of Soekarno many
problems occur that relate to Undang Undang Dasar 1945 (UUD 1945). In 1945-1950
Soekarno change the system of the government from a presidential into a parliamentary
system. After Soekarno change the system of Indonesia Government, the problems are
solved. In 1949 Indonesia making a delegation consisting of Drs. Moh. Hatta to join
Konferensi Meja Bundar with Netherlands.

In October 29, 1949 Indonesia and FBO

making agreement of Republik Indonesia Serikat and FBO (Netherlands).

Some

Indonesia citizens do not agree of Indonesia cooperating with Netherlands, because one
of the citizens wants become an independent state. Based on the case, Indonesia
government try to make Indonesia become a independent country.

In July 21, 1950

Indonesia and RIS are reunited and making Undang-Undang 1945 (UUD 45) as the
Constitution of Indonesia. In August 17, 1950 Soekarno declare Indonesia was reunited,
and become a unitary state (Negara Kesatuan Republik Indonesia/NKRI).

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New Order
New Order in Indonesia's political history refers to the reign of Soeharto (1966
1998)

Soeharto was talking with Soekarno (source : nasional.news.viva.co.id)

New Order is a term for the reign of President Suharto in Indonesia. New Order
replaced the Old Order that refers to the era of Soekarno. New Order is start from 1966 to
1998. In this period, the Indonesian economy is developing very well even though it
coincided with the corruption that is rampant in this country. Moreover, the gap between
rich and poor people is also increase.

In the reign of Seoharto in New Order many

problems occur in Indonesia one of the problem are The Asian Financial Crisis. On 21
May 1998, Suharto announced his resignation, upon which vice-president Habibie
assumed the presidency in accordance with the constitution. After Soeharto announced
his resignation as a President New Order are changed to Era Reformasi and replaced by
Vice President, B.J. Habibie as the new President in Era Reformasi. Era Reformasi are
start from resignation of Soeharto in 1998 until now.

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Reformation Era

Unrest occurs at the time of the Asian financial crisis in the 1998 reform era
(source : pustakadigitalindonesia.blogspot.com)

Many of the factors, which led to the reformation during the reign of the new order,
especially injustice in the political, economic, and law. In new Order was determined to
organize the life of society, nation, and state based on Pancasila and the Constitution of
1945. However in the New Order government many irregularities against the values of
Pancasila and the provisions contained in the 1945 Constitution, which is very detrimental
to the people. The replacement of the old order because many problems occur in
Indonesia in the reign of Soeharto, and some of Indonesia citizens disagreed with the
leadership of Soeharto because he already lead the Indonesia government for 32 years,
and many problems occur in Indonesia, in the reign of Soeharto. At this reform era
Indonesia hopefully will be into a better country, and Indonesia can solve all the problem
are that happened in Old Order, and New Order.

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Historical Analysis!

In Old Order, New Order, and Reformation Era a lot of problems occur, one of the

biggest problems is corruption. Until now the problem of corruption in Indonesia still
cannot be resolved. In old order Indonesia has a corruption eradication institutions
which name is, Panitia Retooling Aparatur Negara (PARAN).

In the presence of the

institution PARAN, all the corruption case still not resolved in the old order.
In the New Order has increased the number of corruption cases. The new order
also has a corruption eradication institutions based on the proposed by Soeharto to
resolved all the corruption cases in Indonesia, which name is Tim Pemberantasan
Korupsi (TPK), but also in the presence of this institutions, all the corruption cases still
cannot be resolved. In the era reform also Indonesia government proposed a new
corruption eradication institutions which name is Komisi Pemberantasan Korupsi KPK
(Corruption Eradication Commission).
In the presence of this commission still all the corruption cases in Indonesia is
cannot be resolved. I think the government is still weakin addressing the problem of
corruption in Indonesia,

then the problem is still happen until now. My conclusion,

Indonesia government should be more better in the future in dealing with corruption
cases and Indonesia could become a stronger country in the absence of corruption.

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Government Types and

Structure
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Riefqi Rafifyanta Prianda!

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Types of Government!

Every state and country have something that called government types. A

government type is something that defines how the government in a country/state works.
For example, Denmark is a monarchy country and another example is Indonesia.
Indonesia is a democracy and a republic country. Some example about government types
are:

Republic: a government whose authority is based on citizens vote, which are

represented y elected or nominated officials chosen in free election.

Democracy: democracy mean rule of the people. The term today refers to a political
system in which the people or their elected representatives rule the people

Theocracy: a government where priests rule in the name of god or by officials who are
regarded as divinely guided, or consistent with the principles of a particular religion.

Autocracy: a government controlled by absolute power, & in the hand of single person
with minimal restraints on the decisions & and lack of any mechanism of popular
control.

Technocracy: a government where scientist and technical experts are in control of the
state, & where rulers are selected on the basis of their knowledge and skill rather than
wealth/power

Fascism: The country is ruled by a totalitarian and corporatist government. It has also
gone by the names Nazism, Baathism, Corporatism, and Falangism.

Anarchy: Anarchy is lack of a central government, as there is no one recognised

governing authority; in anarchy there is no effective government and each individual
has absolute liberty.

Monarchy: a form of government in which supreme power is absolutely or nominally

lodged with an individual, who is the head of state, often for life or until abdication. A
monarchy usually possesses more checks and balances than an autocracy or
dictatorship.

Oligarchy: a form of government in which power effectively rests with a small elite
segment of society distinguished by royal, wealth, intellectual, family, military or
religious hegemony.

Plutoracy: Government ruled by the rich or power provided by wealth, often used to
describe a wealthy class ruling a government, often from behind the scene.

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Tyranny: government or authority of an absolute ruler

Totalitarian: a totalitarian system is the one in which a single political authority

regulates total control over state, that is centralized and dictatorial.

Federation: also known as a federal state, is a political entity characterized by a

union of partially self-governing states or regions under a central (federal)
government.

Communism: a hypothetical stateless entity that follows after socialism as according

to Marxist theory

Dictatorship: a form of government where political authority is monopolized by a

person or political entity, and exercised through various mechanisms to ensure the

entity's power remains strong.

Visualization of some of the government types:

Monarchy

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Democracy

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Tyranny

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technocracy

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Analysis!

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From all the pictures and the explanation of the government type somehow we
can understand how the government in some of the country work. People have different
point of view about government. Some says monarchy is better, democracy is better,
reepublic is better, and some people think that plutocracy is better. But everything is
depending on how the leader on a country rule his country.
Indonesia is a country with many island inside it. It government type are democracy and
republic, and it currrent president is Joko widodo A.K.A Jokowi. On the election day,
Jokowi looks convincing and people thinks that he is better than its rival Prabowo. But
after a few months Jokowi rule indonesia, many of the citizens regret they choose Jokowi.
Why? Because he just like other politicans, he says lot of promises but only some of the
promises that he did, and then Indonesia starts getting worse.
Main problems in indonesia right now are Drugs and corruption. Many of the
politicans think about himself and doesnt really care about the citizens, They just do
corruption. When the corrupt politicans get caught the punishment for them is pretty much
light. The corrupt practices are not always from the politicans sometimes it was from bank
or from other places. Even citizen that stole a chicken had a harder punishment than the
corrupt politicans. The chicken thief got a 9 years of prison, meanwhile the corrupt
politicans got a 4-5 years of prison. The punishment of corrupt politicans should be the
same as drug dealer, A shot to death.
Denmark is a country in europe. The government type in there is monarchy it
means that it has a king/queen to rule the country. The current queen is margrethe II. On
the CPI (corruption perception index) based on https://www.transparency.org/cpi2014/
results denmark has the lowest corruption rate for 3 years in a row. What a great country.
People in denmark have a great self-awareness. That what makes denmark has the
lowest corruption in the world. Indonesia can be like denmark but the punishment for
corrupt politican is too light and the self-awareness of the people itself is too low. For
example people are littering and then natural disaster are coming and they protested
about the flood. So Indonesia can reduce the corrupt practices by stricting some rules
about corrupt practices like the punishment and people should increase they selfawareness.

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Corruption to Economic
Stability
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Andrie Puspitasari!

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Problem!

Differ to the past corruption case in Indonesia increase every year, we can see the

enhancement every year by seeing news about corruption that happens in Indonesia.
Indonesia is known as the most corrupt country, in a brief explanation the issue of political
corruption in Indonesia continues to make daily headlines in the Indonesian media and
generates much heated debate and fierce discussion. What is corruption? dr. Petrus van
Duyne developed the concept of corruption as an improbity or decay in the decisionmaking process in which a decision-maker consents to deviate or demands deviation from
the criterion which should rule his or her decision-making, in exchange for a reward or for
the promise or expectation of a reward, while these motives influencing his or her
decision-making cannot be part of the justification of the decision.

Corruption Caricature, source: google.com

Countries with high economic growth refuse transparency and toleration on

corruption, by this thing impunity culture is created which as a return cause the spreading
of corruption around the country. What cause a corruption to happen? as personal traits
the cause are personal greed that leads to an unfettered desire for money or power, with
no regard whatsoever to moral boundaries, decline of personal ethical sensitivity based on
lack of education and negative learning experience nowadays, no sense of service when
working in a community (selfish), low awareness and lack of courage to denounce corrupt
behaviour that is happening right now. From the cultural aspect the cause of corruption is
nowadays the environment that surround us lead us to corruption, by rationalising
arguments with no moral basis and lack of transparency. The last from the institutional
aspect the value that cause corruption to happen is inefficient control in areas prone to
corruption and slow judicial processes.

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Corruption has been in existence in Indonesia since ancient times. Before

European colonization, merchants who come to Indonesia to trade (especially in Java),
have to pay tribute to the ruler of the state he visited, as a guarantee that he would be
protected by the ruler (Anderson 1972; King 2000). During the Dutch colonial period,
corruption is made worse by the action of Dutch officials, who are encouraged to become
corrupt due to their low salaries. The Dutch government also left the ancient practice of
paying tribute to the native rulers intact, therefore continuing the rent-seeking behavior
done by the local elites (King 2000).

Imperialism in Indonesia, source: google.com

In the past few years, Indonesia has been consistently listed by Transparency
International as one of the most corrupt county in the world. Corruption has been so
endemic inside the country that it affects everyone from the village level all the way to the
centre of power in Jakarta. Massive corruption has been blamed as one of the causes of
Indonesias economic stagnation that occurred after the onset of the Asian Economic
Crisis. According to some experts corruption in Indonesia cause reduction to the state
revenues, the state revenues for country development include tax receipt and charge from
customs. These assets can be lost if we dont protect it from the action of corruptor who
use the state revenues illegally without any contract. Corruption also affect the financial
and national wealth of Indonesia, there was a big reduction and uncontrolled financial
stability in Indonesia that was caused by the corruptors that is very completely very
consumptive. Here in Indonesia corruption inhibit the growth of young entrepreneurs and
business development that is transforming Indonesia into a better and clean country, so as

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we can see nowadays there are many professional workers that become unemployed
because professional workers nowadays is not worth to be used anymore, although those
professional workers have a big potential and plays a big role in economical development.
Based on the International Monetary Fund they stated that among the many
disagreeable aspects of corruption is evidence that it slows economic growth through a
wide range of channels, these are the consequences of corruption; corruption lowers
investment and retards economic growth to a significant extent, talent will be misallocated
because financial incentives may lure the more talented and better educated to engage in
rent seeking rather than in productive work, corruption might reduce the effectiveness of
aid flows through the diversion of funds, corruption may bring about loss of tax revenue,
corruption may lead to adverse budgetary consequences, and lower quality of
infrastructure and public services.

Banks around the world control the money flow, source: google.com

One of the article in The Jakarta Post once talk about corruption with the title
Seeing the big picture of corruption in Indonesia. Corruption slows economic progress.
My research shows that other things equal countries with more corruption have less
investment, and each dollar of investment has less impact on growth. Corruption hurts the
poor, not the rich (Klitgaard 2009). Corruption undercuts democracy and decentralization,
corruption and dictatorship are the two great sins of government (Noonan 2009). In my
opinion, corruption is a big change to a country because they bring a great impact to the
condition of Indonesia, as we can see since the time when Soeharto lead Indonesia, the
culture of corruption is such a trend and it begin to spread around the government system,
it was a popular trend back then, its corruption.

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Solution!

Indonesia have decided to form a Anti-Corruption Strategies, to combat the

happening of corruption in Indonesia. These strategies was started during the era of Mr.
Soeharto with his dictatorship governmental system, Indonesia already have the initiatives
to reform into an anti-corruption country since the 1998. The strategies are; political
reform, social and press freedoms, fiscal transparency and financial monitoring, legal
reform, direct strategies agains corruption, foreign involvement in the reform process, and
civil service reform. Based on the world bank strategies, they stated that a two-pronged
strategy aimed at increasing the benefits of being honest and the costs of being corrupt, a
sensible combination of reward and punishment as the driving force of reforms (Ackerman
2014). The six strategies from the world bank are; paying civil servants well, creating
transparency and openness in government spending, cutting red tape, replacing
regressive and distorting subsidies with targeted cash transfers, establishing international
conventions, and deploying smart technology.

Unmask the Corruption, source: google.com

The solution that I can offer based on my analysis is first people should increase
their self-awareness, by increasing self-awareness people and open their mind people can
understand which one is wrong and which one is right. Self-awareness by being grateful
wont make us think to corrupt someone or something, or even changing something from
its original form because its illegal and it wont give us a useful benefit later on. To the
corruptor, my solution is to make them and their family as poor as possible so they can
feel how does it feel to be poor, but in this case the government should sponsored their
finance for example only Rp. 2.000.000 each month and the corruptor should able to live
with the fund that has been provided by the government.

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Conclusion!

From all the research we can conclude that corruption that happen nowadays is

harmful to condition of economic stability in Indonesia. The corruptors play around illegally
with the state fund, this case bring a huge hit in Indonesian economic stability where
everything become such a mess, and the citizen gets the biggest hit to the corruption
problem that is happening in the government right now. Corruption bring a big transition to
Indonesia, a big difference because everything become even more deteriorate since the
era of Soeharto, the inflation that happen during the tragedy of May 1998 is also caused
by corruption, it all happens because Soeharto way of governing by his dictatorship
system where the citizen dont have any voice, they must remain silent because
everything is based on the leader and its Soeharto, he change Indonesia and to be more
exact he ruined Indonesia.

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Political Eye of
Corruption
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Jung Eun Saem!

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Problem!

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What is corruption? According to http://www.vocabulary.com/dictionary/corruption,
says that, Corruption is dishonest actions that destroys people's trust in the person or
group, like the news of corruption in how your bank is run, that makes you close your
account and invest your money somewhere else. In Indonesia, we can see a lot of
corruption cases happens in the politic world. In the other web, which is http://
www.merriam-webster.com/dictionary/corruption, Dishonest or illegal behavior especially
by powerful people (such as government officials or police officers).
Political corruption may have a lot of reasons to do. But as we see in the aspect of
normal people or the civil of one country, we just see that corruption is bad. Actually its
really a bad thing to do. But Indonesia was not as the corruption country last few years.

Picture about the rate of general corruption in Indonesia and other south east countries.
(http://www.gallup.com/poll/157073/corruption-continues-plague-indonesia.aspx)

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Picture above shows the graphic between corruption in Indonesia and the other
Southeast Asian countries. We can see that Indonesia has the high level of corruption.
Lets see what does it makes Indonesia has the high level of graphic in corruption.
http://www.gallup.com/poll/157073/corruption-continues-plague-indonesia.aspx,
also says that,; Long considered one of the most corrupt countries in the world, tales of
corruption continue to afflict Indonesia despite its shift from an autocratic to a democratic
state near the turn of the 21st century. Former leader Soeharto ruled as dictator of the
country for more than 30 years until being forced from office by popular protests in
response to the corrupt nature of his dictatorship, including pilfering between $15 billion to
$35 billion from state funds for his family's personal gain. Riots in 1998, spurred by
economic and political upheaval as well as charges of corruption throughout leadership,
ended Soeharto's rule and paved the way for democracy in the world's fourth most
populous country.
The country changes as the ruler of the nation changes. So basically, we have to
choose the right rules of ours to make this country good and harmonies. If the ruler of the
country is strict and can conduct the nation well, automatically the nation and the citizens
will be as good as the hypothesis they made at the first point.
Korupsi telah menimbulkan efek domino yang meluas terhadap eksistensi
bangsa dan negara. This sentence is taken from https://
kampuskeuangan.wordpress.com/2011/05/10/dampak-masif-korupsi-terhadap-eksistensinegara-bangsa/, It says that the corruption may give domino effects toward the nation. Not
only the sentence above, according to the website taken, it says that corruption may give
negative impacts toward the politics cycle or the politics. Its because corruption is
individual thing to happen. The others would not know if the person is corrupting. Second,
it would impact the images of one institution if its connected to the corruption.
The next effect is that politics are played by the one who wants to collect their
properties. Or to be specific, writer will paste the sentence taken from the web. Ini
mengandung arti bahwa lembaga politik telah dikorupsi untuk kepentingan yang sempit
(vested interest). Sering terdengar tuduhan umum dari kalangan anti-neoliberalis bahwa
lembaga multinasional seperti Perserikatan Bangsa-Bangsa (PBB), IF, dan Bank Dunia
adalah perpanjangan kepentingan kaum kapitalis dan para hegemoni global yang ingin
mencaplok politik dunia di satu tangan raksasa. Tuduhan seperti ini sangat mungkin
menimpa pejabat publik yang memperalat suatu lembaga politik untuk kepentingan pribadi
dan kelompoknya. Dalam kasus seperti ini, kehadiran masyarkat sipil yang berdaya dan

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supremasi hukum yang kuat dapat meminimalisir terjadinya praktik korupsi yang
merajalela di masyarakat.
For explaining the paragraph above, we have to know about a word called
neoliberalism. What is it? According to http://dictionary.reference.com/browse/
neoliberalism, it says that,: an outgrowth of the U.S. liberal movement, beginning in the
late 1960s, that modified somewhat its traditional endorsement of all trade unions and
opposition to big business and military buildup. And also according to http://
www.merriam-webster.com/dictionary/neoliberalism, it says that a liberal who deemphasizes traditional liberal doctrines in order to seek progress by more pragmatic
methods
The word is mixture of neo-, liberal, and -ism. if we combine each words, is has a
meaning of new, pertaining to, based on, or advocating liberalism, especially the freedom
of the individual and governmental guarantees of individual rights and liberties, and a
suffix appearing in loanwords from Greek, where it was used to form action nouns from
verbs (baptism).
As a summary, i think that neoliberalism is just the same as the word capitalism.
According to http://www.merriam-webster.com/dictionary/capitalism, it says that, A way of
organizing an economy so that the things that are used to make and transport products
(such as land, oil, factories, ships, etc.) are owned by individual people and companies
rather than by the government.
As we talked about different types of -ism and the structure of the various nations,
for me personally, think that the right structure or the structure fits with Indonesia is that
keep the NKRI structure but add some of the dictators. For additional, according to http://
www.gallup.com/poll/157073/corruption-continues-plague-indonesia.aspx, it says that,;
The percentage of Indonesians who say corruption is widespread throughout the
country's government grew to 91% in 2011 from 84% in 2006, while the percentage of
those who indicate extensive corruption in Indonesia's businesses increased to 86% in
2011 from 75% in 2006. Only in 2009 - the year of Yudhoyono's re-election - were
Indonesians less likely than now to say that corruption is widespread throughout the
country's leadership and businesses.

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Solution!

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If this kind of thing happens again and again, Indonesia will turn into a just
corruption country. So, for me, I think Indonesia or the government should be more strict
about the politics problem or to the specific the corruptions in the politics.
For my solution, I think NKRI still fits in Indonesia. But with a little bit of difference in
the governments. They have to know what they are doing and the government and they
have to know a least what they are doing in every aspects and points. If they are doing
the works in the good ways, keep the good ways. But if they are doing some things such
as corruption, better to stop before it may kills you back.
After reading this book, there will be a lot of other opinions based on their structural
bases. But as we can see, if we want to change the structure that we have now, it would
take a lot of time to be processed and to be launched. But we cant just lost hope, just trust
and see the history back then to learn what we have to do in the future and now.

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