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Inadequate budgets and salaries as instruments for institutionalizing public sector corruption in Indonesia

McLeod, Ross


Soeharto used the Indonesian bureaucracy to generate rents that could be harvested by 'insider' firms, while also encouraging it to extort money from 'outsider' firms and individuals. This necessitated incentives that would ensure strong loyalty and minimize internal opposition. Government entities were provided with insufficient budget funding to cover their costs, and their officials were expected to generate cash from illegal activities, making public sector employees financially dependent...[Show more]

CollectionsANU Research Publications
Date published: 2008
Type: Journal article
Source: South East Asia Research
Access Rights: Open Access


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