JAKARTA — Investment bankers and company executives are worried President Joko Widodo's drive for clean governance is falling apart amid a dispute between rival law enforcement agencies in Southeast Asia's largest economy. Indonesia's main anti-corruption agency, Corruption Eradication Commission (KPK), has been severely weakened over the last few weeks in a tit-for-tat feud with the police led to an overhaul of the agency's leaders. The KPK is widely popular among Indonesians and the international community for arresting cabinet ministers, lawmakers, central bankers and CEOs, exposing how widespread and systemic corruption is in Indonesia. "Business people are seeing this as political instability, which may delay some developments," said Edward Lubis, president director of Bahana TWC Investment, which manages a 28 trillion rupiah ($2.15 billion) fund. "They may have not turned negative about the capital market, but some investors planning to accumulate more have stopped to wait for more progress, more certainty on how quick this issue can be resolved." – Reuters
