Soeharto’s Indonesia: A Better Class of Corruption

Abstract

TTndonesia has a reputation as one of the most corrupt countries in the world I (Transparency International, 1999).Unlike many others that are regarded as highly corrupt, however, this was not incompatible with rapid economic progress over three decades, and Soeharto's New Order regime clearly brought considerable material benefits to the majority of the population.Some argue that endemic corruption was unsustainable and that it was responsible for the unravelling that has been seen since mid 1997, but while the nature of government-business relationships undoubtedly contributed in important ways to the crisis, the mechanisms by which this occurred have yet to be adequately described.The present paper attempts to fill this gap.

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