A study conducted by Indonesia Corruption Watch, a non-profit organization co-ordinated by Danang Widoyoko, said that embezzlement accounted for most of the money lost and that “government investment was the sector most prone to graft.”[6] Companies are concerned about red tape and widespread extortion in the process of obtaining licences and permits, and they often faced demand for irregular fees or concessions based on personal relationships when obtaining government contracts.
Companies have also reported regular demand for cash payments and expectations for gifts and special treatments by Indonesian officials.
Interference in public laws and policies for the sake of personal or private gain has weakened the competitiveness of Indonesia.
Social costs due to corruption in Indonesia include the weakening of government institutions and the rule of law.
The people who suffer most are the poor[9] as they are pressured to finance payments through their already tight budgets and the effectiveness of social services are less accessible indirectly.
[12] Following strong criticism of corruption at the beginning of the New Order regime in the late 1960s a Commission of Four was appointed by president Suharto in 1970.
The Corruption Eradication Commission (KPK) stated that it will use Ridwan's verdict as material to develop the investigation on the graft scandal involving the Solar Home System project.
[16] Suharto headed several organizations during his rule, with various functions, including to provide educational, health, and give support for veterans of Trikora.