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

Foreign Direct Investment and Corruption: Is Indonesia Still a Risky Market?

Muhammad Ismail (Universiti Utara Malaysia)
Arka Putra Atmadja (University of California)



Article Info

Publish Date
31 Oct 2024

Abstract

Foreign Direct Investment (FDI) is vital for Indonesia’s economic growth, yet corruption remains a key concern for investors. This paper evaluates the extent to which corruption affects Indonesia’s investment climate and assesses recent reforms aimed at improving transparency and regulatory efficiency. Drawing on investment data, surveys of multinational corporations, and governance indices, the study examines corruption-related risks such as bribery, bureaucratic delays, and informal payments that investors encounter. Findings indicate that while progress has been made, particularly through digitalization and regulatory simplification, corruption still poses significant obstacles in some sectors and regions. The paper discusses the implications of corruption perceptions for Indonesia’s competitiveness in the global market and offers policy recommendations to strengthen anti-corruption enforcement and investor protections. This research contributes to the international debate on FDI and corruption by providing a nuanced understanding of challenges and reforms in a major emerging market.

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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, ...