Forensic Accounting and Corruption in Indonesia

992 Words4 Pages
CHAPTER I INTRODUCTION 1.1 BACKGROUND Corruption in Indonesia is something that attracts a lot of attention from media, communities, academics to practitioners. Almost every line of government is always tinged with corruption. Corruption transformed into a culture and even a practice that is done simultaneously. The root of the history began in Post-1997, Monetary Crisis had devastated the economy and destroy the new order regime that ruling at that time, The crisis also affected various aspects of economic, political, legal and constitutional. The economic system built by the new order regime with the power of a military-backed political elite has shown its ugliness, where the factor of collusion, corruption and nepotism became the main reason why our country is not able to withstand the impact of the crisis that are still exists even now. The reforms of the government after the new order gives hope for change in terms of democratic leadership through pemilihan umum langsung and pemilihan kepala daerah, which resulted in a more equivalent distribution of the economy with the implementation of regional autonomy as well as transparency and accountability of the government with the enactment of Law No. 28 Year 1999 on corruption-free government, Law No. 31 Year 1999 on Eradication of Corruption, and Law No. 17 of 2003 on State Finance. But these expectations appeared to be too good to be true, as corruption cases in Indonesia is growing with new, more sophisticated methods. Combating corruption is not enough when using the expected deterrent effect arising from corrupt actors get jailed. Corruption, Collusion and Nepotism are like a new plague spreading from the central government level down to the House of Representatives and continue spreading to the local level of leadership who seemed to enjoy the forbidden cake that has not been up to their

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