Many organizations, companies, government agencies and groups around the world are discovered to be corrupted despite the many known negative impacts corruption. It is intriguing to as why many organizations organizations does not have the proper system to curb corruption as to minimize the negative impact on the society as a whole.

Corruption has always been a never ending fight in many developing countries such as Indonesia. Fraud and corruption has devastating effects, especially on the poorest citizens of developing countries. Corruption has no borders and has spread worlwide. It erodes public confidence in political institutions and distorts the allocation of resources and undermines competition in the marketplace. In the short run, corruption may benefit individual persons in the organization but in the long run, it has a devastating effect on investment, growth and development. In Indonesia for example, corruptions creates a disproportionately high price on the poor by denying them access to vital basic services.

As an Indonesia citizen, I am intrigued by Indonesia's long fight towards anti-corruption and how corruption has impacted the Indonesian economy. In this Capital Selecta, I will discuss the economical effects of corruption in Indonesia and discuss more speciafically how some of the theories learn academically can prevent the practice of corruption especially in the shipping industry as an example. I will also discuss the imporatnce of corporate governance and how it can eradicate the practice of corruptions in organizations.



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