Will a Lower Corruption Index Harm Investors' Confidence?

Investigating Fund
Summary

Transparency International stated that Indonesia's 2020 corruption perceptions index (CPI) has decreased from the previous years, citing the figure as the worst in the last two decades. Transparency International Indonesia Secretary-General Danang Widyoko said several factors had dragged Indonesia's CPI down.

Danang argues the most significant factor is global investors' doubts about the government's stance in fighting corruption. He said this doubt was triggered by the revision of the Corruption Eradication Commission (KPK) Law in 2019, which eliminates the institution's independence. Danang also mentioned global investors' perception as contributing to the CPI decline.

In response,  Presidential Staff Office expert staff Donny Gahral Adian claimed that the government is committed to improving the corruption perceptions index. "Two ministers were arrested by the KPK. This refutes the accusation that the KPK is not independent," he said.

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