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http://news.smh.com.au/breaking-news-world/corruption-worsens-in-indonesia-survey-20100309-pvmq.html

Corruption worsens in Indonesia: survey 
Bernice Han 
March 9, 2010 
AFP 

Indonesia remains the most corrupt country in Southeast Asia and graft is 
getting even worse, a poll of businessmen says, dealing a blow to the 
president's efforts to clean up the country.

The news comes as President Susilo Bambang Yudhoyono is under mounting pressure 
with his vice-president and finance minister facing a criminal probe into their 
role in the controversial bailout of a troubled bank.

The annual poll by the Political and Economic Risk Consultancy (PERC), made 
available to AFP on Tuesday, put Southeast Asia's biggest economy last in a 
table of regional economies with a score of 9.27 out of the worst possible 10. 

Indonesia also came last in 2009 but with a marginally better score of 8.32.

Cambodia was ranked the second most corrupt regional nation with a grade of 
9.10, followed by Vietnam and the Philippines.

Singapore remained top of the list with a score of 1.42, while Australia was 
second with 2.28 and Hong Kong third on 2.67.

Zero means the country or territory is seen to suffer the least corruption 
among politicians and civil servants, PERC said in the report.

The Hong Kong-based consultancy said Indonesian lawmakers' call for a criminal 
probe into the Yudhoyono government's bailout of Bank Century in 2008 reflected 
attempts by a corrupt establishment to maintain the status quo.

"Corruption has become a charge being used by corrupt people to protect 
themselves and to stifle reform," PERC said.

"The whole fight against corruption is in danger of being corrupted," it said.

Vice President Boediono and Finance Minister Sri Mulyani Indrawati, who both 
authorised the $US724 million ($A796.3 million) bailout, have consistently 
ranked as among the most respected figures in Yudhoyono's cabinet among foreign 
investors.

The probe into their decision to rescue Bank Century may cost them their jobs, 
but "is entirely manipulated and entirely political", PERC said.

Yudhoyono, a liberal ex-general who first came to power in 2004, was re-elected 
in 2009 on promises to root out corruption, which riddles every aspect of 
Indonesian public life, from the courts to the customs office.

Hong Kong slipped a place from a year ago, with PERC saying questionable 
tactics by powerful property developers in the Chinese territory likely dragged 
it down.

"There are still criticisms of some practices, particularly in the real-estate 
sector, concerning tactics used by developers that, to be generous, play on a 
lack of transparency that would not be allowed in many other markets," PERC 
said.

"This could account for why a number of perceptions this year for Hong Kong are 
slightly worse than last year. However, overall Hong Kong has maintained its 
favourable ranking in our survey," it said.

The United States - included for comparison purposes - was fourth with a score 
of 3.42, followed by Japan (3.49), Macau (4.96), South Korea (5.98), Taiwan 
(6.28), Malaysia (6.47) and China (6.52).

"Measuring the level of corruption (in China) is nothing more than guesswork," 
PERC said.

"What is fairly clear is that the problem of corruption is more severe at the 
local level of government and business, particularly state-owned enterprises, 
than at the national level, although there are plenty examples of graft at the 
national level too," it said.

PERC's poll was conducted from December to February, and involved 2,147 
mid-level and senior Asian and expatriate business executives working in the 16 
economies.

© 2011 AFP


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