Indonesia

4. Suggest other issues that may have implications for overseas investors as far as the workforce is concerned in Indonesia

Indonesia is trying to break a long tradition of corruption by implementing transparent and accountable governance. However, the former political, administrative and business elites continue to seek influence and consolidate their position in the new democratic system through informal networks. Furthermore, the country suffers from a weak institutional and legislative framework. Corruption among public officials has dramatically increased in recent years. The level of corruption among Indonesian public officials has significantly increased over the past few years. The most common corruption offences are the abuse of office, money laundering and bribery. Despite the successful deregulation process, foreign companies report that red tape and widespread extortion in the process of obtaining licencers and permits present a major challenge for doing business in Indonesia. Companies are concerned about concessions based on personal relationships and demands for irregular fees to obtain government contracts.

Indonesia has a weak legal and institutional framework. The anti-corruption legislation is deficient and does not address bribery of foreign officials or private sector corruption. Facilitation or expediting payments to public officials are criminalised. However, companies report of regular demands for cash payments or per diems and expectations for gifts and special treatments by Indonesian officials. Despite these tendencies, a number of high-level Indonesian officials have been arrested and charged with corruption in recent years. Indonesia's business environment suffers from inconsistent application of laws. Companies investing in Indonesia should be aware that the judicial procedures at all levels, from investigations to verdicts and appeals, are frequently manipulated through bribes.

In 2013, the independent, global risk consultancy...