top of page
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Journal of Social and Political


ISSN 2615-3718 (Online)

ISSN 2621-5675 (Print)

asia insitute of research, journal of social and political sciences, jsp, aior, journal publication, humanities journal, social journa
asia insitute of research, journal of social and political sciences, jsp, aior, journal publication, humanities journal, social journa
asia insitute of research, journal of social and political sciences, jsp, aior, journal publication, humanities journal, social journa
asia insitute of research, journal of social and political sciences, jsp, aior, journal publication, humanities journal, social journa
open access

Published: 12 July 2018

Corruption and Asian Value’s in Indonesia: The Case of The Suharto Family Business

Julius Ary Mollet

Cendrawasih University, Indonesia

journal of social and political sciences
pdf download

Download Full-Text Pdf




The subject of corruption in Indonesian life has been neglected as an area of social research. Many studies suggest that Asian values have a strong connection with the Asian communities’ corrupt conduct and that they underpin several factors that contribute to individual or society’s corruption. In the context of Indonesia, President Suharto successfully developed Indonesia, establishing a strong foundation for the Indonesian economy. This achievement brought President Suharto the title of “Father of development”. He involved his family businesses in all sectors of the economy and the family became one of the top ten businesses in Asia. Indonesian businessmen close to Suharto received protection and concessions from the President. This paper examines Suharto’s and his mates’ collaboration in business corruption in Indonesia. The study shows that after the Suharto step down from presidency the Suharto family businesses collapse due to their practice of corruption and nepotism.


Aditjondro, G. (2000, September 17). Fortunes of the first family. The Australian Financial Review, p. 95.

Alam, M. S. (1989), Anatomy of corruption: An approach to the political economy of underdevelopment. The American Journal of Economics and Sociology, 48(4), 441-456.

Alatas, H. S.  (1999). Corruption and the destiny of Asia. Prentice-Hall: Petaling Jaya.

Avnimelech, G., Zelekha, Y., & Sharabi, E. (2014). The effect of corruption on entrepreneurship in developed versus non-developed countries, International Journal of Entrepreneurial Behavior & Research, 20(3), 237-262.

Barnwell, N. & Pratt, G.R. (1998). Australian business: An Asia Pacific perspective (3rd ed.). Prentice Hall Sprint Print: Brookvale, NSW.

Barr, M. D. (2000). Lee Kuan Yew and the “Asian values” debate. Asian Studies Review, 24(3), 309-334.

Bennet, M. (1999) Banking deregulation in Indonesia: An updated perspective in light of the Asian financial crisis. University of Pennsylvania Journal of International Economic Law, 20(1). Retrieved from 

Brown, C.  (2015). Australian Indonesia project 50 year of engagement. Canberra, ACT: Bobby Graham Publishers.

Caiden, G.  (2001).  Corruption and governance. In G. E Caiden, O. P. Dwidevi & J. G. Jabbra (Eds.), Where corruption lives (pp. 15-34).  Bloomfield: Kumarian Press.

 Callahan, W. A. (2000). Political corruption in Southeast Asia. In R. Williams (Ed.), Party finance and political corruption (pp. 163-198). Basingstoke and London: Palgrave Macmillan Press.

Chong, T. (2002). Asian values and Confucian ethics: Malay Singaporeans’ Dilemma. Journal of Contemporary Asia, 32(3), 394-406.

Colmey, J. & Liebhold, D. (Monday May 24 1999). The family firm. Time. pp.23-47

De Graaf, G.  (2007). Cause of corruption: toward a contextual theory of corruption. Public Administration Quarterly 31(1), 39-86.

Elias, S. & Noone, C. (2008). The growth and development of the Indonesian economy. Bulletin, December Quarter 2011, Australian Reserve Bank, Retrieved from

Fan, R. (2010). Reconstructionist Confucianism: Rethinking morality after the West. Springer Science.

Fealy, G.  (2015). The politics and Yudhoyono majoritarian democracy, insecurity and vanity.  In E. Aspinall, M. Mietzner, & D. Tomsa (Eds.), The Yudhoyono Presidency: Indonesia decade of stability and stagnation (pp. 35-54). Singapore, ISEAS Publishing.

Gurgur, T., & Shah, A. (2005). Localization and corruption: panacea or Pandora’s box, The World Bank Policy Research Working Paper 3486.

Handerson, J. V & Kuncoro, A. (2004). Corruption in Indonesia, NBER Working Paper No.10674, August.

Hiscock, G. (1997). Who’s really who in business – the top 100 billionaires in Asia. London: Nicholas Brealey Publishing.

Hofstede, G., & Bond, M. H. (1988). The Confucius connection: from cultural roots to economic growth. Organizational Dynamics, 16(4), 4-21.

Khondker, H. H. (2006). Sociology of corruption and ‘corruption of sociology’ evaluating the contributions of Syed Hussein Alatas. Current Sociology, 54(1), 25-39.

Lambsdorff, J. G. (1999). The impact of corruption on capital productivity. Unpublished manuscript, Göttingen University.

Lindsey, T. & Dick, H. Q. (2002). Corruption in Asia: Rethinking the governance paradigm. Sydney: Federation Press.

Macrae J. (1982). Underdevelopment and the economics of corruption: A game theory approach, World Development, 10(8), 677-687.

Mahbubani, K. (1998, July 25). The Economist, p. 23.

McBeth, J. (1998, January 29). Win some, lose some. Far Eastern Economic Review.

McLeod, R. H. (2005). The struggle to regain effective government under democracy in Indonesia. Bulletin of Indonesian Economic Studies, 41(3), 367-386.

Mobarak, A. M. & Purbasari, D. P. (2006) Corrupt protection for sale to firms: Evidence from Indonesia. Retrieved from courses/mobarak/Research.htm

Moktan, K. M. (2015) ADB/OECD Anti-corruption initiative for Asia and the Pacific, Strategies for business, government, and civil society to fight corruption in Asia and Pacific, Proceedings of the 6th Regional Anti-Corruption Conference for Asia and the Pacific. Singapore: OECD.

Murphy, K. M., Shleifer, A., & Vishny, R. W. (1991). The allocation of talent: implication for growth, Quarterly Journal of Economics, 106(May), pp. 503-530.

Nababan, (1999, May 1999). The family firm. Times, p. 47

Radelet, S. (1998, September 30), Indonesia’s implosion. Harvard Asia Pacific Review, Retrieved from 

Rock, M. T.  (2007) Corruption and democracy. DESA Working Paper No. 55ST/ESA/2007/DWP/55, August 2007.

Shung-Hwan, L. (2001) “Asian Values” and Confucian discourse”, DEBATE on Asian Values (4), Korea Journal Autom 2001.

Snoj, H. (2007) Deep corruption in Indonesia. Discourses, practice, histories, in Nuijiten, M and Anders, G (edited) Corruption and the secret of law: A legal anthropological perspective, Ashagate Publishing Limited, England.

Tabor, S.R. (2015) Constrains to Indonesia’s Economic Growth, ADB Papers on Indonesia, No 10 December 2015, Asian Development Bank, Metro Manila, Philippines.

Tanzi, V.  (1998), Corruption around the world: Causes, consequences, scope, and cures. IMF Staff Papers, 45(4), (December 1998). Washington: International Monetary Fund.

Takagi, S.  (2016). Applying the lessons of Asia: The IMF's crisis management strategy following the global financial crisis. International Economic Journal, 30(3), 409-428. https://doi: 10.1080/10168737.2015.1136669

Tanzi, V. & Davoodi, H. (1997). Corruption, public investment, and growth. A Working Paper of the International Monetary Fund WP/97/139, Washington: International Monetary Fund.

Transparency International. (2004). Corruption Perception Index. Berlin, Retrieved from

Tripathi, S. (1998, January 8). A moment of truth, Far Eastern Economic Review.

van der Eng, P. (2009).  Growth and inequality: The case of Indonesia, 1960-1997. Munich Personal RePEc Archive.  Retrieved from /12725/1/Income_inequality_

Verchere, I.  (1978, May). Liem Sioe Liong: Suharto’s secret agent. Insight. pp. 8-16

World Bank. (2000). Indonesia: acceleration recovery in uncertain times. (October 2000), Washington DC: World Bank.

bottom of page