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Thursday, 16 August 2012 - Indonesia president says corruption threatens economic growth |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Aerospace & Defense Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Campaign Polling Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Money Money Home Tax Break Lipper Awards 2012 Global Investing MuniLand Unstructured Finance Linda Stern Mark Miller John Wasik James Saft Analyst Research Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Money Clip Investing 201 Life Health Sports Arts Faithworld Business Traveler Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Video Reuters TV Reuters News Article Comments (0) Pictures Editor's choice Our best photos from the last 24 hours.  Slideshow  Follow Reuters Facebook Twitter RSS YouTube Read Britain warns Ecuador it could enter embassy to get Assange 15 Aug 2012 UPDATE 2-US hypersonic aircraft crashes seconds into military test flight 15 Aug 2012 Militants attack major Pakistan air base; 9 killed | 4:18am EDT Stylus, split-screen stand new Samsung tablet apart 2:25am EDT Dallas mayor declares emergency over West Nile virus 15 Aug 2012 Discussed 138 Obama’s lead over Romney grows despite voters’ pessimism 122 Romney to announce vice presidential choice Saturday 94 Analysis: Are Israelis tough enough for a long war with Iran? Sponsored Links Pictures Reuters Photojournalism Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography.  See more | Photo caption  Life without sight A glimpse at the lives of visually impaired children and adults.  Slideshow  Quakes hit Iran The aftermath of two powerful quakes in northwest Iran.  Slideshow  Indonesia president says corruption threatens economic growth Tweet Share this Email Print Analysis & Opinion The productively disinflationary American worker StanChart finds buffer against Asia slowdown risk Related Topics World » Indonesia » Indonesia's President Susilo Bambang Yudhoyono talks during a news conference with Australia's Prime Minister Julia Gillard (not pictured) at the Northern Territory Parliament House in Darwin July 3, 2012. Credit: Reuters/Daniel Hartley-Allen/Pool By Olivia Rondonuwu JAKARTA | Thu Aug 16, 2012 2:12am EDT JAKARTA (Reuters) - Indonesia's President Susilo Bambang Yudhoyono said on Thursday corruption is on the rise, even in parliament, in his most explicit comments yet on a scourge that he warned threatened economic growth in Southeast Asia's largest economy. Corruption is widely seen as holding back the economy and Yudhoyono has been criticized for letting the fight against it slow as he comes towards the end of his second five-year term. A series of corruption scandals have rocked the president's Democrat Party, weakening it in advance of elections in 2014 when Yudhoyono will step down. "The drum of war on corruption should not dissipate. Corruption should be completely eradicated," Yudhoyono said in a speech to parliament ahead of the country's Independence Day anniversary. "I have to admit there are still many perpetrators of corruption even in the government, parliament, regional representatives and among law enforcers," Yudhoyono said. There are few estimates of how much corruption costs Indonesia but watchdog groups say it is prevalent in the civil service, police and judicial system and that it adds to business costs in part by weakening confidence in the rule of law. Despite rampant graft, resource-rich Indonesia has become a favorite of emerging market investors because of its large domestic market as the world's fourth most populous country, rising middle class, relatively stable fiscal framework and low levels of public debt. Economic growth picked up to a stronger-than-expected 6.4 percent last quarter, defying a global downturn because of domestic consumption and investment. Yudhoyono's wide-ranging speech ahead of Independence Day was the latest in a series to touch on corruption. He said cooperation between the anti-graft body the KPK, the Supreme Court, police and the Attorney General's office was paramount in fighting corruption. Yudhoyono said the government must provide a safe legal environment for investors if it is to promote economic growth, as well as removing hurdles to investment and promoting infrastructure growth. One analyst said he was skeptical that the speech signaled any real stiffening of government resolve on corruption. "This speech is normative because if you say such things you have to show concrete examples. The president mentions extraordinary action to face corruption but there is no realization on the ground," said Donal Fariz of Indonesia Corruption Watch, a graft watchdog. Europe's economic crisis also provided a threat to growth in Indonesia, and that the government needed to cautiously give a fiscal stimulus, though he did not give any details, Yudhoyono said. Economists say the government needs to spend more to overhaul infrastructure to drive long-term growth, though central government spending usually falls below target because of corruption and bureaucratic inefficiency. (Additional reporting by Aditya Suharmoko, Adriana Nina Kusuma and Rieka Rahadiana; Writing by Matthew Bigg; Editing by Jonathan Thatcher) World Indonesia Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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