ABSTRACT

This chapter proposes an analysis of the discursive field of corruption: the various critical and the various legitimizing discourses about it, the dynamic between them, and the way they relate to practices labeled corrupt. It offers a tentative analysis of the institutional development that resulted in systemic corruption. The chapter argues that the specific discursive field of corruption in Indonesia reflects its firm establishment as a systemic practice. It shows that during the frequent political and economic crises of the young republic parts of the administration—and primarily the armed forces—increasingly relied on "non-budgetary finance", a parallel financial infrastructure drawing on illicitly acquired resources. The chapter then argues that systemic corruption is a disciplining and rewarding practice that confirms the bureaucratic hierarchies. It helps the reader to understand the persistence of systemic corruption in Indonesia even in the face of consistent criticism in the public and of strong pressure by the International Monetary Fund (IMF) and the World Bank.