Name: Syahirah Dzakiyyah Putri (2110512033)

Subject: Economics Of Anti Corruption

Summary

What is The meaning of Corruption Perception Index?

The Corruption Perceptions Index (CPI) is an index which ranks countries "by
their perceived levels of public sector corruption, as determined by expert
assessments and opinion surveys." The CPI generally defines corruption as an
"abuse of entrusted power for private gain".
Corruption Index In Indonesia
Jakarta, January 31st, 2023– On this day (31/1/2023), Transparency
International launched the Corruption Perception Index (CPI) 2022 results worldwide
with the theme: Corruption, Conflict, and Security. The CPI is a composite indicator
to measure perceptions of public sector corruption on a scale of 0 (very corrupt) to
100 (very clean) in 180 countries and territories based on a combination of 13 global
surveys and assessments of corruption according to business sector perceptions
and expert judgment since 1995.
The theme was raised to remind governments around the world that corrupt
practices can undermine political, social, and economic stability, which in the end,
will threaten peace, safety, and security in general. Corruption can also create fertile
ground for organized crime, terrorism, and even war, as impunity continues to exist
through the complicity of corrupt public and law enforcement officials.
Since it was launched for the first time in 1995, Indonesia has been one of the
countries whose corruption situation has been monitored regularly. The 2022
Corruption Perceptions Index (CPI) demonstrates that Indonesia continues to
experience severe challenges in fighting corruption. “Indonesia’s CPI in 2022 is at a
score of 34/100 and is ranked 110 out of 180 countries surveyed. This score is down
4 points from last 2021, which was at a score of 38/100. This score is down 4 points
from 2021, the most drastic decline since 1995.” told Wawan Suyatmiko, Deputy
Secretary General of Transparency International Indonesia.
With this result, Indonesia could only increase its CPI score by 2 points from a
score of 32 over the last decade since 2012. This condition shows that the response
to corruption practices is still slow and worsens due to stakeholders’ lack of factual
support.
Results of Indonesia’s 8 composite indicators on CPI 2022:
● Three data sources experienced a decrease compared to the previous year’s
findings: PRS, which fell 13 points; IMD World Competitiveness Yearbook,
which fell 5 points; and PERC Asia, which fell 3 points.
● Three data sources experienced stagnation: Global Insight, Bertelsmann
Transformation Index, and the Economist Intelligence Unit.
● Two data sources experienced a one-point increase, namely the World
Justice Project – Rule of Law Index and the Varieties of Democracy Project
 (VDem). Nonetheless, the indicators for both data sources are exclusively
contributed by the increase in the general aggregate regionally. This is
because in the last five years, the WJP-ROL Index and the VDem have
always been far below and the lowest when viewed from the average annual
CPI score during the previous two decades
Relationship Between Income Distribution and Land Distribution
In Indonesia, there exists a complex relationship between income distribution
and land distribution. Here's an explanation of how these two factors are
interconnected:
● Historical Context: Indonesia's history is marked by a legacy of colonialism
and land concentration. During the Dutch colonial period, vast tracts of land
were controlled by a small elite, leading to significant income inequality. After
gaining independence in 1945, land reforms were initiated to address this
issue, aiming to redistribute land to the landless peasants.
● Land Ownership: Land distribution is a fundamental factor influencing income
distribution in Indonesia. Land ownership patterns play a crucial role in
determining who benefits from agriculture, which is a significant source of
income for a large portion of the population. Unequal land ownership can lead
to a concentration of income among those who control larger parcels of land.
● Agricultural Productivity: Land distribution affects agricultural productivity.
Small-scale farmers with limited land may struggle to achieve economies of
scale, resulting in lower agricultural output and income. Conversely, those
with larger land holdings often have access to better resources and can
generate higher incomes.
● Urban-Rural Divide: Indonesia's income distribution is also influenced by the
urban-rural divide. Land distribution disparities can be more pronounced in
rural areas where agricultural land is a primary source of income. Rural
communities may face challenges related to landlessness and limited access
to agricultural resources.
● Government Policies: Government policies and land reform initiatives have
varied over the years, impacting both income and land distribution. Policies
aimed at land redistribution can directly affect income distribution by providing
land to landless farmers and reducing inequality.
● Economic Development: Indonesia's economic development, including
industrialization and urbanization, has led to shifts in income distribution. As
the country's economy diversifies, income sources expand beyond agriculture,
but land distribution still has a significant impact on rural incomes.
● Social and Cultural Factors: Social and cultural factors also play a role in the
relationship between income and land distribution. Customary land tenure
systems, for example, can influence who has access to land and how income
is generated within specific communities.
Some Issue That Happened In Indonesia:
1.Land Distribution:
 ● Land Ownership Disparities: Land distribution in Indonesia has been
characterized by significant disparities. Large portions of land are owned by a
small elite, while many landless or small-scale farmers have limited access to
productive land.
● Land Conflicts: Land disputes and conflicts were common due to unclear land
titles, competing claims, and inadequate land tenure systems. These conflicts
often led to social tensions and sometimes violence.
● Lack of Land Reform: Progress on land reform and redistribution efforts was
slow, despite government initiatives. The effectiveness of land reform
programs in providing land to landless farmers was a concern.
The Solution:
● Land Reform: The Indonesian government had initiated various land reform
programs to redistribute land to landless or marginalized farmers. These
programs aimed to improve land access and ownership for those who
historically had limited access.
● Land Tenure Regularization: Efforts were made to formalize land tenure
systems and provide clearer land titles to individuals and communities,
reducing land disputes and conflicts.
2.Income Distribution
● Income Inequality: Income distribution in Indonesia has been unequal, with
significant disparities between the rich and poor. High-income inequality has
been particularly pronounced in urban areas.
● Urban-Rural Divide: Income inequality was more pronounced in rural areas,
where agriculture is a primary income source. Small-scale farmers often
struggled to earn a decent income, while urban areas saw greater income
opportunities.
● Informal Labor Market: A large portion of the population worked in the informal
sector, where job security and income stability were low, contributing to
income disparities.
The Solution:
● Social Assistance Programs: Indonesia had implemented social assistance
programs, such as the Family Hope Program (Program Keluarga Harapan or
PKH) and the Smart Indonesia Card (Kartu Indonesia Pintar or KIP), to
provide financial assistance to low-income households and support access to
education and healthcare.
● Minimum Wage Policies: The government had been working on adjusting and
increasing minimum wage levels to improve the income of workers in varios
sectors
3.Health Distribution:
● Healthcare Access Disparities: Indonesia faced challenges in ensuring
equitable access to healthcare services. Disparities in healthcare
 infrastructure and quality existed between urban and rural areas, with urban
areas having better access to healthcare facilities.
● Healthcare Financing: Limited access to affordable healthcare and health
insurance was a concern for many Indonesians, affecting their ability to
receive essential medical services.
● Health Outcomes: Variations in health outcomes and life expectancy existed
across regions. Remote and underserved areas often had poorer health
indicators.
The Solution:
● Healthcare Expansion: Efforts were made to expand healthcare infrastructure
and services, particularly in rural and underserved areas, to improve access
to healthcare.
● National Health Insurance (JKN): Indonesia had launched a national health
insurance program (Jaminan Kesehatan Nasional or JKN) to provide health
coverage to a larger portion of the population and reduce financial barriers to
healthcare access.
● Community Health Programs: Initiatives focused on strengthening
community-based healthcare programs, including the training of village
midwives and healthcare workers to provide essential services in remote
areas.
4.Education Distribution:
● Educational Disparities: Disparities in education were evident, with differences
in access to quality education between urban and rural areas. Many rural
regions lacked adequate schools and well-trained teachers.
● Quality of Education: Even when education was accessible, the quality of
education varied widely. There were concerns about the curriculum, teaching
standards, and infrastructure in some schools.
● Dropout Rates: High dropout rates, especially in secondary education, were a
challenge. Economic constraints often forced students to leave school
prematurely.
The Solution:
● Education Access: The government aimed to improve access to quality
education, particularly in rural areas, by building more schools and ensuring
the availability of trained teachers.
● Scholarship Programs: Scholarships and financial assistance programs were
implemented to help students from low-income backgrounds access and
complete their education.