Indonesian Anti Corruption Studies
Vol. 1 No. 4 (2024): December, 2024

The Economic Cost of Corruption in Indonesia’s Infrastructure Projects

Malik Sabrang Panuntun (Universitas Gadjah Mada)



Article Info

Publish Date
31 Oct 2024

Abstract

Corruption poses significant economic challenges in Indonesia’s infrastructure sector, undermining project efficiency, increasing costs, and delaying development. This paper investigates the economic cost of corruption in infrastructure projects by analyzing case studies, budget overruns, and procurement irregularities. Using quantitative data from government reports and interviews with key stakeholders, the study estimates the direct and indirect financial losses attributable to corrupt practices such as bribery, kickbacks, and collusion among contractors and officials. Findings reveal that corruption inflates project costs by up to 20–30%, reduces quality, and discourages private investment. The paper highlights systemic weaknesses in oversight mechanisms and calls for enhanced transparency, stronger institutional controls, and community monitoring to mitigate corruption risks. This research contributes to international debates on corruption’s economic impacts and provides policy recommendations relevant to other emerging economies grappling with infrastructure development challenges under governance constraints.

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Journal Info

Abbrev

anticorruption

Publisher

Subject

Description

Indonesian Anti Corruption Studies (e-ISSN: 3164-5836) is a peer-reviewed, open-access academic journal in the field of anti-corruption studies, published by COLLEGIUM JUSTICIA INDONESIA in online format (electronic journal). First published in 2024, the journal is issued quarterly in March, June, ...