Indonesia’s Corruption Index Falls, Raises Governance Concerns

Indonesia’s anti-corruption performance deteriorated in 2025, as the country’s Corruption Perception Index (CPI) fell to 34, according to Transparency International Indonesia (TII). The score marks a three-point decline from 37 in 2024, signaling growing concerns over governance, transparency, and institutional integrity.

The CPI, which measures perceived levels of public sector corruption on a scale from 0 (highly corrupt) to 100 (very clean), placed Indonesia at 109th out of 180 countries this year. The ranking represents a notable drop from 99th position in 2024, underscoring a weakening perception of anti-corruption effectiveness.

“Indonesia’s CPI score this year is at 34, and its ranking among the 180 countries is 109,” said Ferdian Yazid, Program Manager at Transparency International Indonesia, during the virtual launch of the CPI 2025 on February 10, 2026, as reported by Channel9.

Falling Behind Regional Neighbors

Within Southeast Asia, Indonesia now ranks fifth among ASEAN member states. Singapore continues to lead the region with a strong score of 84, maintaining its position among the world’s least corrupt countries. Malaysia improved to 52, while Timor-Leste remained steady at 44. Vietnam also recorded progress, reaching 41 in 2025.

Indonesia remains ahead of Laos (34), Thailand (33), the Philippines (32), Cambodia (20), and Myanmar (16). However, the widening gap between Indonesia and higher-ranking ASEAN peers highlights increasing regional competition in governance standards and public sector reform.

Ferdian noted that Indonesia now shares its score with several countries, including Algeria, Malawi, Nepal, Sierra Leone, Laos, and Bosnia & Herzegovina. “Interestingly, there is one country with the same score as Indonesia, which is Nepal — a country that last year also experienced intense political demonstrations caused by deeply rooted corruption in the public sector,” he said.

What the CPI Measures

The CPI is compiled using nine independent data sources, assessing indicators such as bribery, diversion of public funds, abuse of public office for private gain, the effectiveness of anti-corruption enforcement, legal protections for whistleblowers and journalists, and public access to government information.

In 2025, the World Economic Forum’s Executive Opinion Survey contributed the highest data score at 65 — significantly higher than previous averages. However, several other indicators declined. The IMD World Competitiveness Yearbook dropped sharply, while other sources such as the Bertelsmann Foundation Transformation Index and PERC Asia Risk Guide also recorded decreases.

Ferdian explained that four of the nine data sources used in this year’s index recorded declines, contributing to the overall drop in Indonesia’s CPI score.

Implications for Investors and Governance

For foreign investors, Indonesia’s CPI results may signal deeper structural challenges in governance and regulatory consistency. While the index reflects perception rather than direct experience, it is frequently referenced in global risk assessments and investment evaluations.

Lower scores can influence how international businesses assess compliance risks, transparency standards, and the predictability of public institutions. In a competitive ASEAN landscape, governance indicators increasingly shape investment decisions alongside economic growth metrics.

In a global context, Denmark (89), Finland (88), and Singapore (84) lead the 2025 rankings, while countries facing chronic instability and conflict occupy the lowest positions. The contrast highlights how institutional strength and political stability remain central to sustained anti-corruption progress worldwide.

 

Source: Channel9

Photo Credit: Shutterstock

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