Have You Ever Heard About These 6 Biggest Corruption Scandals in Indonesia?

The corruption issue in Indonesia keeps on standing out as truly newsworthy in the Indonesian media and produces much-heated discussion and fierce conversation.

In scholastic circles, researchers have consistently looked for answers to whether or not the corruption issue in Indonesia has its underlying foundations in the customary pre-colonial social orders or the ensuing independent Indonesian governments. 

For a long time to come, it simply should be acknowledged that the corruption issue in Indonesia’s political, legal, and corporate domains exists and is inescapable (in spite of the fact that there are a few signs that point towards an improvement). In this article, we will cover the 6 biggest corruption/fraud scandals in Indonesia. 

Along these lines, without further ado, let us simply jump right into the matter. 

A List of Biggest Corruption/Fraud Scandals in Indonesia

1. Electronic ID Corruption 

Back in 2017, Indonesia was managing a mega-scandal of Electronic ID corruption, involving the top lawmaker in the nation, Setya Novanto, who is also the chairman of the House of Representatives and the head of the Golongan Karya political group.

Setya Novanto has been kept by the Corruption Eradication Commission for addressing over a major scandal including 170 million USD of taken state assets, after a few endeavors to dodge court procedures. 

Speaking of corruption, here are the facts of corruption in Indonesia.

2. Freeport McMoran Inc. Scandal

As yet revolving around Setya Novanto, back in 2015, he was blamed for attempting to coerce 1.8 billion USD in shares from U.S mining giant Freeport McMoran Inc., one of the biggest gold mines in Indonesia, in return for permitting it to keep working in West Papua Province and was consequently compelled to leave as Speaker soon thereafter. He held his position as a member of parliament and was reestablished as a speaker less than a year later. 

3. New Order Regime 

President Suharto’s New Order regime (1965-1998) was known for its impressive rapid and sustained financial development (with Gross National Product averaging +6.7 percent yearly between the years 1965 and 1996), yet, it is additionally notable for its corruption nature. Suharto used an arrangement of support to guarantee the dedication of his subordinates, driving individuals from the public elite and critics. 

In return for business openings or political positions, Suharto could depend on their help. With the Armed Forces (counting its intelligence device) and colossal assets (originating from the oil booms during the 1970s) at him, he turned into the apex of the public political and financial framework, taking after the patrimonial intensity of conventional rulers in the pre-colonial past. 

No doubt, Suharto was one of the most influential presidents of Indonesia in the pre-colonial era.

4. Jiwasraya’s Fraud Case 

The issues at Jiwasraya go back to 2006, as indicated by the 2016 review report. The test likewise revealed affirmed inconsistencies and misrepresentation in the administration of its reserve funds and speculation plans, which ensured returns of as high as 13%.

Asmawi Syam, the previous president chief, and the board were removed by the administration in November 2018. Then, another review a year ago demonstrated the full size of the losses, and the organization hailed its powerlessness to pay policyholders, prompting it to call for a government rescue. 

5. Luxurious Cell Scandal 

In Sukamiskin jail in the Indonesian territory of West Java, jail authorities purportedly gave luxurious cells to rich and powerful prisoners, who supposedly paid somewhere in the range of 19,000 USD and 35,000 USD for unique treatment. A few prisoners even got keys and had the option to travel anywhere they wanted. 

After a raid directed by Indonesia’s anti-graft body, Indonesian Corruption Eradication Commission, a few prisoners and jail authorities were captured over these luxurious jail cells. Aside from the luxurious cells, Sukamiskin jail authorities had likewise apparently been giving unique treatment to specific prisoners. 

Rich and powerful prisoners can purchase luxuries, including time out of jail.

6. Garuda Smuggling Scandal 

The pirating of a complete unassembled vintage Harley Davidson and Brompton bike was recently uncovered by Soekarno-Hatta Airport’s customs and extract on November 17th. Further investigations uncovered the smuggler’s main suspect; Garuda Indonesia’s own leader chief, Ari Akshara. 

The damage by unpaid customs duties could be coming to up to 106,000 USD. The revelation of the high-end contraband was purportedly made by Indonesia’s customs authorities in November 2019 after Garuda’s new Airbus A330 showed up from France on a delivery flight. 

Flight archives demonstrated that the airplane should be just delivering the aircraft’s chiefs and workers.

So, these are the 6 biggest corruption/fraud scandals in Indonesia. While you are at it, make sure to check out the examples of corruption in Indonesia and types of punishment in Indonesia.