A Dilemma between Firm Survivability and Business Ethic in Indonesia

Main Article Content

Ari Kuncoro


in the 1998 economic crisis, the public perception on corruption in Indonesia was changed almost overnight in 1998. After almost 30 years of recognizing corruption as economically benign or even beneficial to the economic development, the public opinion was now shifting toward a concern that corruption hampered economic development (MacIntyre [2001]). What has been happening with small corruption at the firm level is however relatively unknown. For a private firm the primary concern of stakeholders from management, employees and shareholders is sustainability. Business environment however is not always friendly. Uncertainty could come from changes in government regulations. Facing the possibility of business stoppage, business ethics and illegality may have little meaning, many firms would have no choice but to pay grease money to speed up the process provided that the amount is “small.† 

Article Details




Amiti, M., and J. Konings, 2007, “Trade Liberalization, Intermediate Inputs and Productivity: Evidence from Indonesia, American Economic Review, vol. (97), p. 1611-1638

Bardhan, P., 1997, “Corruption and Development: A Review of issues,” Journal of Economic Literature, vol. 35 (September), p. 1320-1346

Bliss, C.J.E, and R. Di Tella, 1997, “Does Competition Kill Corruption,” Journal of Political Economy, vol 105(5), p. 1001-1023

MacIntyre, Andrew, “Investment, Property Rights, and Corruption in Indonesia,” in Campos, J.E.(ed), 2001, Corruption: The Boom and Bust of East Asia, Ateneo de Manila University Press.

Rose-Ackerman, S., 2008, “Corruption and Government,” International Peacekeeping, vol. 3., p. 328-343.

Shleifer, A. and R.W. Vishny, 1993, “Corruption,” Quarterly Journal of Economics, vol. 108, p. 599-617.

Shliefer, A. and R. A. Vishny, 1997, “A Survey of Corporate Governance,” Journal of Finance, vol. 52(2), p. 737-783.

Widodo, T., 2008, “Structure of Protection in Indonesian Manufacturing Sector,” ASEAN Economic Bulletin, vol. 25(2), p. 161-78