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The Damage of the Shadow Economy: The Urgency of Addressing Foreign Bribery in Indonesia

Hendra Karianga1 & Zico Junius Fernando2


Foreign bribery is a crime that occurs when an individual or company gives, promises, or offers something of value to a foreign official or person holding a public position in another country to obtain or retain a business advantage. This research explores the negative impact of the shadow economy, with a special focus on the practice of foreign bribery in Indonesia. This study uses a normative juridical approach. Researchers analyze and process collected
materials qualitatively to classify legal materials and content analysis. The study’s findings indicate that foreign bribery, a form of corruption involving illegal transactions between companies and foreign officials, is one manifestation of the shadow economy. This phenomenon threatens Indonesia’s economic stability, social justice, and institutional integrity. Foreign bribery is against the principles of Pancasila, the Indonesian nation’s basic ideology. This practice produces social and economic injustice by benefiting some people while harming others, often the most vulnerable. Indonesia needs urgent action to combat foreign bribery and its negative impact on the shadow economy. Through regulation of foreign bribery,
effective law enforcement, and public education about the dangers of foreign bribery, Indonesia can strengthen the principles of Pancasila and build a more just and prosperous society.

Keywords: Shadow Economy, Foreign Bribery, UNCAC 2003, Law Enforcement, Pancasila