Corruption in Indonesia

@article{Henderson2004CorruptionII,
  title={Corruption in Indonesia},
  author={J. Henderson and A. Kuncoro},
  journal={LSN: Law & Economics: Public Law (Topic)},
  year={2004}
}
Bribes by firms in Indonesia arise principally from regulations --licenses and levies --imposed by local government officials. Regulations generate direct revenues (fees) plus indirect revenues in the form of bribes. The expected value of the latter is capitalized into lower salaries needed by localities to compensate public officials. Localities in Indonesia are hampered by insufficient revenues from formal tax and transfer sources to pay competitive salaries plus fund demanded' levels of… Expand
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