"Pillar of Competitiveness"

Institutions are a pillar of competitiveness in the Indonesian state. Governance institutions are an influential state body in this republic. The role of good governance and effective institutions. An effective governance structure must be in place as a foundation for the implementation of development policy. 

The degree to which good governance played a role in poverty reduction over the period since the Millennium Development Goals (MDGs) were adopted is debatable  Even so, there are important factors in implementing policies that are necessary for achieving any development goal, some of which are introduced in this section. For example, leadership that is accountable and possesses a clear idea of development objectives is a necessity.

The degree to which good governance played a role in poverty reduction over the period since the MDGs were adopted is debatable People working in government institutions are trusted figures of the Indonesian people in solving problems in Indonesia but unfortunately there are troubled people who have opportunities to work to create new problems. The latest problem is corruption.

Most problematic factors for doing business is corruption.

Corruption as a failure of governance, Corruption poses one of the most important governance challenges. Combating it has become an urgent priority as countries strive to mobilize more public and private resources and ensure their equitable and efficient use in pursuing development goals. There is compelling evidence that corruption undermines development. 

It is also the case that underdevelopment breeds corruption. While increasing the cost of doing business, corruption discourages investment and reduces economic growth. It can also increase inequality and political instability. Corruption also distorts prices and reduces access to public services, including access to education and health care.

The concept of Corruption is an understanding or opinion about Corruption according to Law No. 31 of 1999 in pasal 2, Corruption is any person who violently violates an act of self or another person or a corporation that can harm the State's or the country's economy. There are several elements that are contained, namely: Fighting the Law, enriching oneself or others or corporations, harming the State's finance or the country's economy. R Wiyono, Discussion on the Law on the Eradication of Corruption Crimes (Wiyono, 2005)

Rules to reach ultimate goals more effectively can only be developed if people know what their ultimate goals are. But goals can only be established in connection with ideas about how to interpret the world. So institutions can only be developed in a cultural context. 

Within this cultural-institutional setting people live their daily lives, have their experiences and adjust their behaviour if their experiences are different from what they expected. 

Corruption is a unique culture because this culture not only develops  high levels in our intitutions but low levels. In fact, Indonesia has become one of the most corrupt countries in the world which is certainly very heartbreaking. Although a new anti-corruption institution has been established, namely the Corruption Eradication Commission (KPK) which has been aggressively combating corruptors, corruption that has turned into this culture feels very difficult to stop and eradicate.

Binoto Nadapdap in his book "Korupsi Belum ada Matinya" said that the root or emergence of corruption is closely related to the weak enforcement or application of law in capturing perpetrators of corruption. If we consider the court decisions at the time the attorney general's office was led by Soekarton, at the time of the face - the faces of the corruptors who were questioned on the glass screen were people with the value of corruption not quite large. Which can be filtered or captured by the law to eradicate corruption is only a small community. (Nadapdap, 2014)