CHAPTER I INTRODUCTION
A. Background
Often we see and hear news about corruption, both obtained through print and electronic
media. Almost every day we are presented with news about corruption, so that the Indonesian people
are already familiar with the word corruption.
Corruption or corruption or stealing (Latin: corruptio from the verb corrumpere which means
rotten, corrupted, shaken, twisted, bribed, stolen, stolen) is an act of public officials, both politicians
and civil servants, as well as other parties involved in that action which improperly and illegally abuse
the public trust that is empowered to them to gain unilateral benefits. In the Big Indonesian
Dictionary, corruption is an act that causes a country to become bankrupt with extraordinary effects
such as the collapse of the economy, inadequate health services, damage to the education system, and
so on. etc.
The practice of corruption that occurred in Indonesian territory existed during the Majapahit
kingdom era, which was around the 14th-15th centuries AD. And it turns out that this practice of
corruption has continued until now in this modern century. Corruption in Indonesia has penetrated
various institutions, departments, agencies and other areas and not only at the central level but up to
the village level, both on a small scale worth thousands of rupiahs to large scales worth trillions of
rupiahs, both carried out individually or in groups.
In this paper, we try to review an issue related to the problem of corruption, we hope that it
will be of benefit to all of us.
B. Problem Formulation
1. What is the impact of corruption on the economy?
2. What is the social impact of corruption and community poverty?
3. What is the impact of corruption on the government bureaucracy?
4. What is the impact of corruption on politics and democracy?
5. What is the impact of corruption on law enforcement?
6. What is the impact of corruption on defense and security?
7. What is the impact of corruption on environmental damage?
C. Purpose
1. Knowing the impact of corruption on the economy
2. Knowing the impact of corruption on social and community poverty
3. Knowing the impact of corruption on the government bureaucracy
, 4. Knowing the impact of corruption on politics and democracy
5. Knowing the impact of corruption on law enforcement
6. Know the impact of corruption on defense and security
7. Knowing the impact of corruption on environmental damage
CHAPTER II DISCUSSION
A. The impact of corruption on the economy
Corruption has various effects of great destruction (an energetic destruction effect) on various
sides of the life of the nation and state, especially in terms of the economic side as the main driver
of people's welfare.
Following are the impacts of corruption on the economy:
1. Sluggish Economic Growth and Investment
Corruption is responsible for sluggish economic growth and domestic investment.
Corruption also complicates economic development by creating high distortions and
inefficiencies. In the private sector, corruption increases trade costs due to losses from illegal
payments, management costs in negotiations with corrupt officials and the risk of cancellation
agreement or because of an investigation. The condition of a corrupt country will make
multinational entrepreneurs leave the country, because investing in a corrupt country will harm
the country itself because it has high hidden costs.
2. Decreased Productivity
A corrupt country causes productivity to decrease. This happens along with the industrial
and production sectors that are hampered from developing better or carrying out capacity
building. This decrease in productivity will cause quite complicated problems such as high
layoffs and increasing unemployment. Ultimately there will be poverty. fairly widespread
society.
3. Low Quality of Public Goods and Services
Damaged roads, collapsed bridges, overturned trains and others are clear examples that in
our country the quality of goods and services is very low. Corrupt bureaucratic officials will
add to the complexity of existing projects to hide the various corruption they are doing.
4. Declining State Revenue from the Tax sector