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ATTITUDES TOWARD CORRUPTION: DO DEMOGRAPHIC FACTORS AND KNOWLEDGE ON CORRUPTION MATTER IN INDONESIA? 1 I Wayan Nuka Lantara Abstract This survey study investigates the following issues: (1) to what extent is the level of tolerance of Indonesian society towards various types of corruption; (2) to what extent is the knowledge level of Indonesian society regarding types of corruption and its legal consequences; and (3) do demographic factors and knowledge level of corruption associated with tolerance level towards corruption? This study distributes a total of 1,200 questionnaires to participants in Indonesia across level of education (senior high school; undergraduate; and post graduate); across three geographical areas of Indonesia (west, middle, and east). The response rate is 83.33% (1,060 out of 1200). Based on the geographical aspect, it is found that participants tend to have a lower level of acceptance of corruption compare to those participants reside in middle or east part of Indonesia. It is also found that in terms of knowledge about corruption and it legal consequences, participants in the west part of Indonesia tend to yield a higher level of knowledge compare with those participants who belongs to the middle and east part of Indonesia. The study also investigated the effect of the level of knowledge on and various demographic factors (gender, age, education level, and income) towards the level of tolerance on corrupt behavior. The results depict that level of knowledge on corruption provide a significant negative effect on the level of acceptance of corrupt behavior. This means that the higher the score participants' level of knowledge on various matters related to corruption, the lower the level of their acceptance of corrupt behavior. The findings also show that the level of education and income negatively associated with the level of acceptance of corruption. The higher the level of education and income participants, the lower the level of acceptance of participants for various acts of corruption. Keywords: corruption; level of tolerance; education; Indonesia 1 This research is funded by the Konosuke Matsushita Memorial Foundation research grant 2014. I would like to gratitude Ralf Bebenroth of Kobe University for providing great suggestions during the completion of this research report. I wish to thank also Arief Waluyo of the Corruption Eradication Commission (KPK), Veri Antoni of the Faculty of Law, Gadjah Mada University Indonesia for their great support and feedback on the development of the survey instruments. Ni Ketut Rai Kartini, Agus Sudariyanto, Erwin Prayoga, and Tanjung Yanugroho also provided excellent research survey assistant for questionnaire distribution and enumeration.

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Page 1: DO DEMOGRAPHIC FACTORS AND KNOWLEDGE ON …matsushita-konosuke-zaidan.or.jp/data/promotion_research/pdf/14-619.pdfcountries can be best described as a ‘culture of corruption’,

ATTITUDES TOWARD CORRUPTION:

DO DEMOGRAPHIC FACTORS AND KNOWLEDGE ON CORRUPTION MATTER IN

INDONESIA? 1

I Wayan Nuka Lantara

Abstract

This survey study investigates the following issues: (1) to what extent is the level of

tolerance of Indonesian society towards various types of corruption; (2) to what extent is

the knowledge level of Indonesian society regarding types of corruption and its legal

consequences; and (3) do demographic factors and knowledge level of corruption

associated with tolerance level towards corruption?

This study distributes a total of 1,200 questionnaires to participants in Indonesia across

level of education (senior high school; undergraduate; and post graduate); across three

geographical areas of Indonesia (west, middle, and east). The response rate is 83.33%

(1,060 out of 1200).

Based on the geographical aspect, it is found that participants tend to have a lower

level of acceptance of corruption compare to those participants reside in middle or east

part of Indonesia. It is also found that in terms of knowledge about corruption and it legal

consequences, participants in the west part of Indonesia tend to yield a higher level of

knowledge compare with those participants who belongs to the middle and east part of

Indonesia.

The study also investigated the effect of the level of knowledge on and various

demographic factors (gender, age, education level, and income) towards the level of

tolerance on corrupt behavior. The results depict that level of knowledge on corruption

provide a significant negative effect on the level of acceptance of corrupt behavior. This

means that the higher the score participants' level of knowledge on various matters related

to corruption, the lower the level of their acceptance of corrupt behavior. The findings

also show that the level of education and income negatively associated with the level of

acceptance of corruption. The higher the level of education and income participants, the

lower the level of acceptance of participants for various acts of corruption.

Keywords: corruption; level of tolerance; education; Indonesia

1 This research is funded by the Konosuke Matsushita Memorial Foundation research grant 2014. I would like to gratitude Ralf Bebenroth of Kobe University for providing great suggestions during the completion of this research

report. I wish to thank also Arief Waluyo of the Corruption Eradication Commission (KPK), Veri Antoni of the

Faculty of Law, Gadjah Mada University Indonesia for their great support and feedback on the development of the

survey instruments. Ni Ketut Rai Kartini, Agus Sudariyanto, Erwin Prayoga, and Tanjung Yanugroho also provided

excellent research survey assistant for questionnaire distribution and enumeration.

Page 2: DO DEMOGRAPHIC FACTORS AND KNOWLEDGE ON …matsushita-konosuke-zaidan.or.jp/data/promotion_research/pdf/14-619.pdfcountries can be best described as a ‘culture of corruption’,

ATTITUDES TOWARD CORRUPTION:

DO DEMOGRAPHIC FACTORS AND KNOWLEDGE ON CORRUPTION MATTER IN

INDONESIA?2

I Wayan Nuka Lantara3

A. Introduction

Corruption is an old phenomenon, yet remains a big problem in almost all countries in the

world, including for the case of Indonesia. The Transparency International (2013) argues that

corruption is one of the greatest challenges of the contemporary world, which could undermine

good government, distorts public policy, leads to the miss-allocation of resources, harms the

private sector and particularly impairs the poor.

Corruption and economic development has a mutual relationship. Corruption obstructs

economics growth by reducing investment, diverting public resources, and increasing business

costs (Lambsdorff, 2003; Wei, 2000). Conversely, underdevelopment which is identical with

poor governance and law enforcement will be conducive to corruption (Rose-Ackerman, 2004;

Truex, 2010).

Some researchers have studied the determinants of corruption using cross-countries level

of analysis. Some among many factors which associated with the level of corruptions are:

exposure to democracy, political competition, level of education, level of development, and trade

openness (Montinola and Jackman, 2002; Treisman, 2000; Ades and Di Tella. 1999; and Shabbir

and Anwar, 2008).

2 This research is funded by the Konosuke Matsushita Memorial Foundation research grant 2014. I would like to

gratitude Ralf Bebenroth of Kobe University for providing great suggestions during the completion of this research report. I wish to thank also Arief Waluyo of the Corruption Eradication Commission (KPK), Veri Antoni of the

Faculty of Law, Gadjah Mada University Indonesia for their great support and feedback on the development of the

survey instruments. Ni Ketut Rai Kartini, Agus Sudariyanto, Erwin Prayoga, and Tanjung Yanugroho also provided

excellent research survey assistant for questionnaire distribution and enumeration. 3 Faculty of Economics and Business, Gadjah Mada University, Yogyakarta, Indonesia, e-mail: [email protected]

Page 3: DO DEMOGRAPHIC FACTORS AND KNOWLEDGE ON …matsushita-konosuke-zaidan.or.jp/data/promotion_research/pdf/14-619.pdfcountries can be best described as a ‘culture of corruption’,

Indonesia is characterized by a developing country with a huge number of populations

(250 million people) and promising economic growth, but paradoxically is ranked as a country

with a high level of corruption among many ASEAN countries (Transparency International,

2013). The high level of corruption in Indonesia could mean that some Indonesian people tend to

be lenient towards corruption, although some others parts of community demonstrated an explicit

rejection towards corruption.

Anti-corruption movement in Indonesia is now struggling. On the one hand, the

establishment of the Corruption Eradication Commission (KPK) since 2003 as an independent

and powerful agency in Indonesia shows promising results. In terms of justice efforts, there have

been many bureaucrats and or businesspersons convicted of corruption been tried and jailed.

However, on the other side, a report by Transparency International (2013) has consistently put

Indonesia on a much worse rank compared to other ASEAN countries (i.e. Singapore and

Malaysia). If the report holds true, it could mean that corruption remains the latent danger that

threatens people daily life in Indonesia. It should be admitted that nowadays corruption has

become even more widespread and exists at almost every level of bureaucracy system in

Indonesia (KPK, 2013).

Shleifer and Vishny (2004) and Truex (2011) argue that corruption in developing

countries can be best described as a ‘culture of corruption’, which is indicated by the existence

of social norms toward a certain level of corrupt behavior. As commonly found in particular

countries with high corruption level, the attitudes toward corruption behaviors in Indonesian

society could be hypothesized to be not consistent, where some parts of society actively fight

against corruption, while some others demonstrate a relatively high tolerance towards corruption.

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However, empirical evidence on the attitudes of Indonesian society towards corruption seems to

be not existence.

This study purports to survey and provide policy recommendations for corruption

eradication program in Indonesia. Specifically, this study is concerned over the following issues:

(1) do the attitudes of society in Indonesia vary across types of corrupt behavior; (2) to what

extent is the level of knowledge of Indonesian society on types of corruption and its legal

consequences; and (3) do demographic factors (e.g: age, gender, level of education, regional

areas; and income) and level of knowledge on corruption determine an individual tolerance level

towards corruption in Indonesia?

This study is expected to be one of the first empirical evidence on the topic of attitudes

and the level of knowledge of Indonesian society towards corruption in Indonesia. In addition,

demographic factors determining the level of tolerance of corruption is expected to be useful for

policy makers to determine the best approach that can be used to educate the Indonesian public

in curbing corruption. The findings of this study is expected to contribute empirical evidence as

well as policy recommendation for policy makers in Indonesia on determining the best approach

that can be used to educate the Indonesian public in curbing corruption. As a developing country,

Indonesia needs to learn from the success stories of developed countries that proved successful

in balancing economic development and the eradication of corruption, such as Japan.

Most of the previous studies on the topic of corruption are more focused on the impact of

corruption on economic development and business activities (Wei, 2000; Lambsdorff, 2003;

Wedeman, 2004; and Olken, 2006). There have been only few studies conducted on the

phenomenon behind the occurrence of corruption, such as how is people's attitudes toward

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various types of corrupt behavior, which could form the social norms that could stimulate a

more tolerant attitudes toward corruption, such as a study by Truex (2011) in Nepal.

The proposed benefit and results of this research are as follows, firstly, to provide

empirical evidence on the attitudes of Indonesian society towards various types of corrupt

behavior as well as the level of knowledge on corruption in Indonesia. The empirical findings

are expected to be useful for policy makers in determining the most effective approach in

educating the public in order to eradicate corruption in Indonesia. Secondly, to provide

empirical evidence about which demographic factors that most determine a person's attitude

towards corruption. The findings are expected to be the input for policy makers in Indonesia in

deciding which demographic factors they should focus on, in order to support the eradication of

corruption program in Indonesia. Lastly, the study is expected to perform a literature study to

learn the key to success in the eradication of corruption programs and the role of public

education by studying the case of developed countries that proved to be successful in fighting

corruption, especially from the case of Japan.

The next section of this paper provides a review of corruption in Indonesia and some

relevant literature and previous empirical studies. Section three describes the research method.

Section four discusses the analysis and discussion of the results of research. The last section

describes conclusions and suggestions.

B. Corruption in Indonesia

Corruption has a long tradition in Indonesia and is emblematic of the era of former

President Suharto (1965-1998). In his era, the political system is identical with the system of

crony capitalism, where Suharto and his cronies exerted direct control over most of the largest

firms in Indonesia (McLeod, 2000). These controlled firms received advantages granted by the

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government and retransferred the rents to the cronies through various mechanisms, including free

grants of shares in a company, manipulated prices in contracts, big cash envelopes, high salary

positions, rights to exploit natural resources, and other privileges.

A survey study conducted by World Bank (2000) involved a sample of Southeast Asian

firms, including 100 Indonesian firms. The survey was aimed to determine the quality of the

investment climate and business environment in Southeast Asian countries. The result show that

out of the 100 Indonesian firms surveyed, more than two-thirds of them acknowledged high

taxes and bribe payment had been the major obstacle in running business in Indonesia.

In the case of Indonesia, corruption is likely to be related with a number of factors, such

as large amounts of public resources derived from natural resources, vested interests and

politically connected networks, poorly paid civil servants, low regulatory quality, and weak

judicial independence. In addition, local officials are given wide discretionary power and

resources without proper accountability and enforcement mechanisms (Martini, 2012).

Snape (1999) suggested that for the case of Indonesia, corruption can incorporate

collusion and nepotism in terms of the misuse of public office for private gain. However, a

difficulty in writing about corruption in Indonesia, as elsewhere, is that such misuses of office

are unlikely to be documented and much of the available information is therefore anecdotal.

Further evidence is supplied by an opinion poll of 1000 respondents carried out in February 1998

by the Centre for the Study of Development and Democracy in Jakarta, which found that 78% of

Indonesians polled were certain that bribery was still a necessity in dealings with government

offices.

Transparency International has now promoted campaign program called "unmask the

Corrupt". The goal of this program is to create transparency and expose acts of corruption that

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had been veiled. Transparency International also warned, corruption is not only rob the rights of

the poor, but also create problems of governance and instability. In the new Indonesian

government by President Joko Widodo (elected in 2104), Indonesian government shows a strong

support for the Commission of Corruption Eradication (KPK) to fight against corruption, which

can be indicated by the increasing number of political figures involved in corruption were

processed in court and imprisoned.

C. Theoretical and Empirical Background

Topics on corruption have received increasing attention from the media and researchers.

Corruption can be commonly defined as the misuse of public or office power for the sake of

personal gain. Corruption can be in the form of bribery, coercion, kickback and other related

practices that provide an unfair advantage to the parties that could undermine fair-trade, waste

resources, defraud the public, and human suffering (Vogl, 1998; Quinones, 2000).

Previous empirical works demonstrated that corruption leads to unfair resource allocation

and profoundly impacts business investment and performance of organizations (Batra and Stone,

2008). Kelman (2000) suggested that corruption is problematic because people are denied

benefits they deserve, and the relationship between people and their government is harmed by

the practice of corruption when the government failed to serve its citizens in a proper way.

Many researchers have tried to investigate the determinant of corruption. Jain (2001)

stated that there are three fundamentals for corruption: (1) bureaucratic discretionary power, (2)

the association of this power with economic rents, and (3) deterrence as a function of the

probability of being caught and penalized. The first two preconditions can be considered as the

benefits of corruption, while the third factor is related to the cost of corruption (Becker, 1968).

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Economic and social factors may also be the determinants of corruption. You and

Khagram (2005) argue that income inequality enables the group of richer society to abuse their

power for private gain and tend to promotes higher levels of corruption. However, Husted (1999),

on the other hand, failed to find such relationship between income inequality and corruption.

In terms of demographic factors as the determinant of corrupt behavior, Dollar et al.

(2001) concluded that countries with a larger participation of women in parliament or

government tend to have less corruption, and Swamy et al. (2001) provide empirical evidence

that women are less tolerant towards bribe behavior. Moreover, Paternoster and Simpson (1996)

argue that women may be more risk averse and hence perceive a larger probability of being

caught for being corrupt. Other demographic factors that possibly give impact to corrupt

behavior are income and level of education. Treisman (2007) and Gundlach and Paldam (2009)

argue that there is a long-run negative causation between income and corruption. Husted (1999)

provides empirical evidence that countries with higher GNP per capita tend to have a lower level

of corruption. Glaeser and Saks (2006) provide an empirical result that the higher the level of

education, the less likely the tendency to accept corrupt behavior.

D. Research Design

This survey study investigates the following issues: (1) to what extent is the level of

tolerance of Indonesian society towards various types of corruption; (2) to what extent is the

knowledge level of Indonesian society regarding types of corruption and its legal consequences;

and (3) do demographic factors and knowledge level of corruption associated with tolerance

level towards corruption?

The study was conducted by distributing questionnaires in order to obtain the scores of

intolerance towards corrupt behavior as well as the scores of knowledge of participants regarding

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types of corruption and its legal consequences. In total, 1,200 questionnaires were distributed

towards participants in Indonesia across level of education (senior high school; undergraduate;

and post graduate); across three geographical areas of Indonesia: West area (Java and West

Kalimantan); middle area (Bali and Sulawesi); and east area (Maluku and Papua). For each

geographical area, the study distributed 400 questionnaires, which can be divided into the level

of studies as follows: high school (300); undergraduate (600); post graduate (300). Description of

participants is provided in Table 2. Out of total 1,067 questionnaires returned by participants, 7

incomplete questionnaires cannot be used, which produced a response rate of 83.33% (1,060 out

of 1200).

The questionnaire utilized in this study can be divided into two main parts: attitudes

towards corruption; and knowledge on corruption in Indonesia. The first part contains thirteen

questions related to the seven dimensions of the type of corruption that must be completed by the

participants with a Likert scale of one to five, where one is for "very unacceptable", five equal

for "very acceptable", and three is for "neutral ". The lower the scores, the lower the tolerance

level of a particular corruption behavior. Questionnaires about knowledge on corruption contains

thirty questions intended to measure the participants' knowledge about the various types of acts

of corruption in accordance with the rules of corruption in Indonesia, as well as knowledge about

the various cases of corruption involving politicians and public officials in Indonesia that

exposed many print and TV media. Higher scores indicate better level of knowledge on

corruption. The sample of questionnaires can be found as appendix.

Questionnaires for the acceptance level on the various dimensions of corruption wqas

developed based on the questionnaire used in Truex (2010), which includes seven dimensions of

corruption: minor vs grand corruption; vs. cash gifts bribery; private vs. public figure corruptors

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corruptors; politician vs. government employee; deserved vs illicit gifts; giver vs receiver of

bribery; favoritism (friends / family vs. non-friends / non-family). Some of the questions used in

Truex (2010) was translated into Indonesian, and modified to fit the context in Indonesia. A

description of the dimensions of corruption is presented in Appendix.

The questionnaire to measure the level of knowledge of participants regarding types of

corruption and its legal consequences was developed based on the specific corruption rules in

Indonesia (Indonesian Corruption Law; Free Anti-Corruption in Indonesia) as well as a variety

of news related to corruption cases handled by the Indonesian Corruption Eradication

Commission (KPK) in Indonesia. The questionnaire used in this study has also been improved in

terms of content validity and face validity in consultation with the staff of KPK and academics

who have expertise in the field of law of corruption in Indonesia. Before distributed to all the

participants, a pilot test involving 35 participants was conducted to improve the quality and

readability research questionnaire.

The study utilized independent sample t-test as well as paired sample t-test to test the

mean different across regions and demographic factors on the tolerance scores and knowledge

scores on corruption. We also employed multivariate analyses using OLS regression to examine

the association between knowledge on corruption and some demographic factors with attitude

towards corruption behavior.

E. Results and discussion

E.1. Description of participants

Table 1 below describes the profile of participants involved in the study, based on

geographical distribution and demographic characteristics (gender and education level). From a

total of 1,060 participants who filled out questionnaires completely, in terms of geographical

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areas, 37.8% of participants reside in the western part of Indonesia, 26.3% in the central part of

Indonesia, and the rest (35.8%) in the eastern part of Indonesia. 46.6% of the of participants are

male, and 53.4% are female. In terms of education level, 45.7% of the of participants are in the

senior high school level, 30.9% are in the undergraduate level, and the rest 23.4% are post-

graduate student level.

Table 1. Description of participants

Number % of total

Geographical area of Indonesia

West 401 37.83

Middle 279 26.32 East 380 35.85

Total 1,060 100

Demographic factors

Gender: Male 494 46.60

Female 566 53.40

Total 1,060 100

Education level: Senior high school 484 45.67

Undergraduate 328 30.94

Post-graduate 248 23.39

Total 1,060 100

E.2. Knowledge on corruption and acceptance level towards corrupt behavior

The study also investigated the level of knowledge of the participants on various types of

corruption in accordance with the rule of law in Indonesia as well as a variety of corruption cases

dealt with Commission (KPK) and had been covered extensively in the media in Indonesia.

Examples of questionnaires to measure the participants' level of knowledge of corruption in

Indonesia is shown in appendix 1.

Table 2 presents a description of the level of knowledge on corruption based on

geographical distribution, gender, and level of education. The level of knowledge of participants

is indicated by the score of correct answers of the participants for a total of 30 questions that

were asked in the questionnaire (score range 0% - 100%). Overall, the correct answer scores

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obtained by participants were 53.29%. These results indicate that the level of knowledge of

participants is still relatively low, because it is still far from the maximum score.

In terms of geographical distribution, it appears that there is a tendency that the score

level of knowledge of participants who live in western part of Indonesia tend to be higher

(61.62%) compared to the central part of Indonesia (58.55%) and eastern (41.93%). In terms of

gender, female participants tend to score higher levels of knowledge (54.51%) than male

participants (51.87%). From the aspect of education level, the results showed that the higher the

education level of the participants, the higher the score the level of knowledge of corruption.

Table 2 also shows the results of compare mean test of the mean value of participants'

levels of knowledge based on geographical distribution, gender, and education level. The results

of independent sample t-test show that there are significant differences in the knowledge level

based on geographical distribution (west vs. middle; middle vs east; and west vs. east). There is a

tendency that participants belongs to the eastern part of Indonesia has the lower the score of

knowledge about corruption, and the highest score tend to be existed for participants reside in the

west part of Indonesia.

The results as reported in Table 2 also show that in terms of gender, female participants

tend to have higher level of knowledge than male participants, with a significance level of 5%.

These results support the findings of Dollar et al. (2001), which also shows that women tend to

have the level of awareness and knowledge are better than men. The possible argument is that

women tend to have more intense exposure over the good and bad than men, acquired since

childhood. Naturally, this occurs because the culture of eastern society where women tend to be

positioned to obtain a higher protection than men so they can distinguish between the good and

bad in later adult life.

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Table 2. Knowledge level of participants regarding corruption

Geographical area of Indonesia Gender Education level

Whole West Middle East Female Male High

school

Under-

graduate

Post

graduate

Knowledge (%) 53.29 61.62 58.55 41.93 54.51 51.87 47.81 52.57 66.42

Compare mean: independent sample t-test

West vs Middle 1.87**

Middle vs East 9.41***

West vs East 15.24***

Female vs Male 1.91**

High School vs

Undergraduate

-3.21***

Undergraduate vs Posgraduate

-7.78***

High School vs

Undergraduate

-11.45***

The results also showed a positive association of education level of the participants with

the knowledge level of the participants of corruption. The higher the education level of the

participants, the higher the level of knowledge of corruption they have. This is supported by the

results of mean different test which shows a significant mean difference (1% level of confidence).

This indicates the need for the provision of knowledge about the various acts of corruption and

legal consequences for communities in Indonesia, especially for central and eastern regions.

These results also indicate the need for the provision of knowledge in terms of more intensive

effort through formal education. For the case in Indonesia, the provision of knowledge about

corruption has not been well integrated into the curriculum in Indonesia, both for secondary and

university level education. Knowledge showed by the participants is more likely obtained from

out of formal classroom, for example of the news media TV, newspapers or the internet.

The study also examined the level of participant’s intolerance for various types of action

that leads to corruption. The dimensions of the types of corruption that are used in this study

refer to the research instrument used in Truex (2010). To adjust to the peculiarities that exist in

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Indonesia, the questions used in the questionnaire Truex (2010) was translated into Indonesian,

and some questions were modified according to the context and situation in Indonesia.

Dimensions of various acts of corruption were asked to the participants of this study are

presented in Table 3. The participants' level of tolerance for the actions of corruption measured

by Likert scale 1-5. The lower the score of the chosen participants, the lower the tolerance level

of the participants on the various types of corruption in question.

The result on the level of intolerance towards various types of corruption is shown in

Table 3. The study also conduct different test average value level of intolerance on the various

dimensions of corruption, based on aspects of the geographical region, gender, and education

level. The first test conducted to examine whether there are differences in the average value of

participants' level of tolerance on the dimensions of grand corruption in the form of cash (Q1)

than in the form of gift petty. Overall the participants relatively low level of tolerance shown by

the score approaching the lowest score (range between 1:31 to 2:25).

Based on the geographical aspect, it is found that participants who live in the form of

cash grand compare with in the form of petty gift, at a significance level of 10% in participants.

This pattern is most likely existing among participants who live in the western region of

Indonesia and male. In terms of education level, participants with university level education

(undergraduate and post graduate level) tend to show a stronger intolerance compare to those

participants in lower level of education (high scool). Similar patterns are likely also seen when

tested on the difference between the dimensions of corruption Vs petty cash gift. These results

indicate that the study participants tended to show a lower level of acceptance of the kind of

corruption in the form of grand and petty cash compared petty corruption in the form of gift.

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The next test performed to examine differences in participants' level of acceptance based

on the dimensions of corruption made by the politician in the bidding process with unfair

recruitment process (Q4) compared to the unfair recruitment process undertaken by private (Q5).

The results showed that participants tended to be more tolerant to the dimensions of corruption in

the form of bidding unfair process conducted by private rather than by the politician, with a

significance level of 1% for almost all aspects of geography, gender and level of education. The

same pattern is also found on the comparison between the behaviors performed by the corrupt

politician vs. the bureaucrats. These results may indicate that the participants in this study tended

to give a different assessment if acts of corruption committed by actor politician who is generally

a public figure than the private.

Table 3. Level of tolerance towards various types of corruption

Geographical areas of Indonesia Gender Education level

Whole West Middle East Female Male High

school

Under-

graduate

Post

graduate

Q1. Grand cash

1.80 1.49 1.58 2.19 1.69 1.86 1.96 1.75 1.31

Q2. Petty cash 1.79 1.56 1.65 2.11 1.68 1.92 1.93 1.83 1.44

Q3. Petty gift 1.81 1.56 1.59 2.25 1.76 1.95 2.04 1.89 1.40

Q4. Politician job

2.03 1.98 1.81 2.17 1.89 2.18 2.07 1.98 2.00

Q5. Private

job

1.79 1.64 1.57 2.08 1.71 1.90 1.93 1.85 1.44

Q6. Bureau-

crat job

1.82 1.59 1.63 2.16 1.73 1.93 1.94 1.89 1.44

Q7. Public contract

1.75 1.49 1.58 2.10 1.69 1.82 1.89 1.79 1.37

Q8. Private

contract

1.85 1.57 1.67 2.24 1.71 2.02 1.91 1.95 1.58

Q9. Favoritism contract

2.15 1.84 2.05 2.54 2.04 2.29 2.21 2.33 1.77

Q10. Deserved

giver

2.31 2.17 2.21 2.51 2.16 2.49 2.26 2.42 2.29

Q11. Illicit

giver

1.97 1.92 1.97 2.03 1.89 2.07 1.97 2.10 1.79

Q12. Illicit

receiver

1.77 1.59 1.74 1.97 1.69 1.86 1.89 1.77 1.50

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Q13.

Favoritism ticket

1.71 1.65 1.74 1.76 1.64 1.79 1.69 1.70 1.76

Mean-comparison: paired-sample t-test

Q1. Grand

cash vs Q3. Petty gift

-0.22 -1.61* -0.26 -0.68 -1.19 -1.59

* -1.35

* -2.56

*** -2.51

***

Q2. Petty cash

Q3. Petty gift

-0.81 -0.05 1.26 -1.43* -0.35 -0.83 -2.47

*** -1.95

** 1.15

Q4. Politician job

Q5. Private

job

6.38***

7.30***

3.81***

1.37* 4.48

*** 4.59

*** 2.55

*** 2.25

*** 7.76

***

Q5. Private job

Q6. Bureau-

crat job

-0.85 1.91**

-1.22 -4.48* -0.55 -0.66 -0.29 -1.27 -0.05

Q4. Politician

job

Q6. Bureau-

crat job

5.52***

7.84***

2.62***

0.21 3.79***

4.04***

2.28**

1.29* 7.05

***

Q7. Public

contract

Q8. Private contract

-2.93***

-1.84**

-1.78**

-1.90**

-0.32 -3.58***

-0.15 -3.14***

-3.68***

Q9. Favoritism

contract

Q13. Favorit-ism ticket

11.54***

4.44***

3.88***

10.61***

8.17***

8.17***

9.13***

8.93***

0.10

Q10. Deserved

giver

Q11. Illicit giver

8.83***

5.43***

2.82***

6.55***

5.76***

6.73***

4.89***

4.49***

6.82***

Q11. Illicit

giver Q12. Illicit

receiver

5.29***

6.72***

3.07***

0.79 4.08***

3.43***

1.17 5.24***

5.61***

Other type of corrupt behavior which was also asked to the participants is type of

corruption in the bidding process conducted in a public contract (Q7) vs. private contract (Q8).

On average, the scores given by the participants ranged from 1:37 to 2:24 that indicate a low

tolerance level of participants for both types of corrupt behavior. The mean difference test results

also showed a significant level of rejection is stronger for the type of corruption in the bidding

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process conducted in a public contract than in a private contract, with a significance level of 1%

and 5%.

E.3. The association between demographic factors and corruption knowledge with tolerance

level towards corruption

The study also investigated the effect of the level of knowledge on and various

demographic factors (gender, age, education level, and income) towards the level of tolerance on

corrupt behavior. Results of the study are presented in Table 4, which summarizes the results of

OLS regression with the dependent variable in the form of acceptance level participants for

various types of corruption.

The results depict that level of knowledge on corruption provide a significant negative

effect on the level of acceptance of corrupt behavior. This means that the higher the score

participants' level of knowledge on various matters related to corruption, the lower the level of

their acceptance of corrupt behavior.

Tests on various demographic factors showed that the level of education and income

negatively associated with the level of acceptance of corruption. The higher the level of

education and income participants, the lower the level of acceptance of participants for various

acts of corruption. This findings support the result of Truex (2010) who examined the

participants in Nepal, which also found that participants with higher levels of education and

income tend to show a higher level of intolerance towards corruption.

The study also shows that gender is positively associated with the level of acceptance of

corrupt behavior. This confirmed the test results in Table 4 which shows that the female

participants tended to show a lower acceptance rate than the male participants. These findings

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are consistent with the findings of Dollar et al. (2001) and Truex (2010) who found that women

are inherently less corrupt.

F. Conclusion

Corruption remains a big problem for many countries in the world including for

Indonesia. The Transparency International (2013) argues that corruption is one of the greatest

challenges of the contemporary world, which could undermine good government, distorts public

policy, leads to the miss-allocation of resources, harms the private sector and particularly impairs

the poor.

As one of a developing country with a huge number of populations (250 million people)

and promising economic growth, Indonesia paradoxically is ranked as a country with a high level

of corruption among many ASEAN countries (Transparency International, 2013). The high level

of corruption in Indonesia could mean that some Indonesian people tend to be lenient towards

corruption, although some others parts of community demonstrated an explicit rejection towards

corruption. However, in the optimistic side, anti-corruption movement in Indonesia is now

struggling. On the one hand, the establishment of the Corruption Eradication Commission (KPK)

since 2003 as an independent and powerful agency in Indonesia shows promising results.

This survey study investigates the following issues: (1) to what extent is the level of

tolerance of Indonesian society towards various types of corruption; (2) to what extent is the

knowledge level of Indonesian society regarding types of corruption and its legal consequences;

and (3) do demographic factors and knowledge level of corruption associated with tolerance

level towards corruption?

This study distributes a total of 1,200 questionnaires to participants in Indonesia across

level of education (senior high school; undergraduate; and post graduate); across three

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geographical areas of Indonesia (west, middle, and east). The response rate is 83.33% (1,060 out

of 1200).

Based on the geographical aspect, it is found that participants tend to have a lower level

of acceptance of corruption compare to those participants reside in middle or east part of

Indonesia. It is also found that in terms of knowledge about corruption and it legal consequences,

participants in the west part of Indonesia tend to yield a higher level of knowledge compare with

those participants who belongs to the middle and east part of Indonesia.

The study also investigated the effect of the level of knowledge on and various

demographic factors (gender, age, education level, and income) towards the level of tolerance on

corrupt behavior. The results depict that level of knowledge on corruption provide a significant

negative effect on the level of acceptance of corrupt behavior. This means that the higher the

score participants' level of knowledge on various matters related to corruption, the lower the

level of their acceptance of corrupt behavior. The findings also show that the level of education

and income negatively associated with the level of acceptance of corruption. The higher the level

of education and income participants, the lower the level of acceptance of participants for

various acts of corruption.

Findings of this study contribute an empirical evidence on the association between some

demographic factors (such as: gender, education level, and income) as well as knowledge level

on corruption with the level of tolerance towards corrupt behavior. The results can be used to

support corruption eradication program in Indonesia which is currently struggling. The results

imply that comprehensive program to increase the knowledge on corruption is in line with the

effort to increase the intolerance level of Indonesian society against many types of corrupt

behavior in Indonesia.

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Table 4. Regression results on the association between knowledge level on corruption and demographic factors with tolerance level

towards corrupt behavior

Tolerance level towards may types of corrupt behavior

Grand

cash

Petty

cash

Petty

gift

Politi-

cian job

Private

job

Bure-

aucrat job

Public

contract

Private

contract

Favori-

tism contract

Deserv-

ed giver

Illicit

giver

Illicit

receiver

Favorit-

ism ticket

Knowledge

on corruption

-1.94***

-1.13***

-1.49***

-1.11***

-1.37***

-1.68***

-1.75***

-1.40***

-1.48***

-0.72***

-0.85***

-1.15***

-0.47***

Gender 0.07 0.22***

0.22***

0.25***

0.16**

0.16**

0.08 0.27***

0.22***

0.30***

0.17**

0.14**

0.13**

Age -0.03 -0.01 0.05* 0.04 -0.01 -0.01 0.01 -0.001 -0.03 0.01 -0.06

** 0.001 0.03

Education level

-0.09* -0.08

* -0.12

*** 0.08 -0.08

* -0.05 -0.04 0.04 -0.002 -0.15

** -0.01 -0.04 -0.07

*

Income -0.07***

-0.10***

-0.09***

-0.03 -0.06**

-0.06**

-0.08***

-0.11***

-0.11***

-0.09***

-0.02 -0.09***

0.003

F-value 35.42***

28.41***

38.43***

9.95***

22.46***

28.48***

28.18***

21.93***

25.58***

9.02***

6.94***

19.11***

3.2***

R2 0.20 0.17 0.21 0.06 0.14 0.17 0.17 0.13 0.15 0.06 0.05 0.12 0.02

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