EXECUTIVE SUMMARY

1. • In February 2013, leaders of Indonesia's two major political parties (Prosperous Justice Party and Democratic Party) were detained on graft suspicions; following a string of other arrests of high-profile party politicians for the same allegations.

2. • Following the arrests, polls placed PKS's popularity in seventh among the 10 competing parties, while PD has significantly declined from its big win in 2009 to fourth place. Polls also suggest that PD is now perceived as the most corrupt party in the country.

3. • PD serves as a strong warning against relying too much on leadership charisma and the failure to establish solid party machinery. On the other hand, PKS as a well-organised party still suffers from disunity and the challenge of maintaining a solid Islamic outlook that is non-discriminative.

4. • Since image matters for elections, parties seen as the least corrupt and can function the best should survive better. However, party politics have led parties to corrupt practices. High costs of party politics which lead to corruption can be suppressed by greater transparency for their fund-generating activities.

INTRODUCTION

In February 2013, leaders of Indonesia's two major political parties were detained on graft suspicions. The arrests of Partai Keadilan Sejahtera's (PKS, Prosperous Justice Party) president Luthfi Hasan Ishaaq, and Partai Demokrat's (PD, Democratic Party) chairman Anas Urbaningrum have jeopardized their respective parties’ electoral prospects. While Luthfi has been arrested for suspicions over special favours for certain beef importers, Anas—previously linked to other corruption cases—has allegedly received a luxury car as a bribe for fixing a government construction contract for the Hambalang sports centre project.

The arrests followed a string of other high profile party politicians who are facing corruption charges. Indonesia's Corruption Eradication Commission (Komisi Pemberantasan Korupsi, KPK) have previously detained Andi Mallarangeng (former Sports and Youth Affairs Minister), and jailed Angelina Sondakh (PD's deputy secretary general) and Muhammad Nazaruddin (PD's former treasurer). Late last year, the Jakarta Corruption Court has also sentenced Wa Ode Nurhayati, a former member of the House of Representatives budgetary committee from the Partai Amanat Nasional (National Mandate Party).