Another major contributing factor was the corruption in the government. Internal corruption was, and still is, rampant. Indonesia is one of the world's most corrupt countries. Suharto gave government money and assets to his children. The value of three of his six children totaled 4.5 billion plus. Suharto himself is valued at 16 billion (108). Internal political corruption was widening the class divide. Even as recently as 2007, politicians have utilized their power to further themselves economically:.
"Perhaps most tellingly, Jakarta's tepid response to the mudflow highlights the cronyism and collusion that still define Indonesian politics (This mudslide was caused by aggressive mining techniques). The company blamed for the disaster, Lapindo Brantas, is a subsidiary of the business conglomerate of billionaire Aburizal Bakrie, a Golkar (the largest political group in Indonesia) parliamentarian and major contributor to Yudhoyono's presidential campaign. In a mockery of the misery afflicted on the people of Sidoarjo (the region affected by the mudslide), Bakrie continues to serve as the country's Coordinating Minister for People's Welfare." --What's holding Indonesia back; Clear as mud.
The International Monetary Fund offered to help Indonesia out this slump with a bail offer of 43 billion US dollars in return for some government and economic reforms. However, Suharto balked at the reforms he promised the IMF as conditions for the bailout (108). The reason for this unexpected decision that so negatively impacted the greater good of the country was personal gain. This misuse of political power to avoid prosecution is a repeating occurrence, and puts a focus on individual success instead of national wellbeing.
The government's stubbornness and lack of foresight ruined its relations with foreign countries and caused economic stagnation and failing value of the national currency. Indonesia has always had restrictions that make the country an unnecessarily expensive and difficult place in which to invest (14).