Forty scholars from various universities at home and abroad, including University of Indonesia (UI) economist Faisal Basri, Center of Reform on Economics (CORE) Indonesia research director Piter Abdullah and Budy Resosudarmo from the Australian National University, presented an open letter to President Jokowi "Jokowi" Widodo on Monday, urging him to issue a regulation in lieu of law (Perppu) annulling the revision. At the time of writing, 233 scholars have endorsed the open letter, arguing that the revision would hit the economy hard.

Six economists also prepared a 50-page academic paper, sourced from a joint study, to support their stance.

“Corruption has been empirically proven to be an obstacle in investment and infrastructure construction, human resources development and the state budget in various countries,” the paper reads.

Corruption also causes inefficiencies in regional administrations’ spending, forcing the public to spend 50 percent more on goods and services, it says. Corruption also weakens the government’s fiscal and legal capacity. As a result, the country may have to bear the fiscal burden of the government’s reliance on debts for state financing, it continues.

The paper also quoted research showing that corruption lowered the tax to gross domestic product (GDP) ratio by between 1 and 2.9 percent, which would be significant as the value of the country’s state budget was only around 12.76 percent of GDP last year.

“In regards to investment, corruption lowers the ease of doing business and hampers investment flows and eventually, economic growth,” the researchers concluded.

The House of Representatives recently passed a revision to the KPK Law that experts claim would weaken the antigraft body. It was passed only days after Jokowi officially approved of the bill’s deliberation.

Presidential Chief of Staff Moeldoko raised eyebrows in September by suggesting that the existence of the KPK could hinder investment.

The new KPK Law came into effect on Thursday, 30 days after lawmakers approved the revision. Among the controversial points of the revision are the establishment of a supervisory body overseeing the KPK’s wiretapping and search and seizure of evidence activities. The revised law also effectively turns the KPK into a government body, which critics fear would affect its independence and hamper its ability to investigate government officials.

“We support President Jokowi's plan to continue the country's development by issuing Perppu and annulling the KPK Law revision,” Gadjah Mada University (UGM) lecturer Rimawan Pradiptyo told a press briefing in Jakarta on Friday. “If corruption law enforcement is weakened, economic efficiency will decline.”

He added that the country had lost some Rp 203.9 trillion (US$14.4 billion) from 2001 to 2015 because of corruption, adding that only Rp 21 trillion had been returned to the government.

Piter argued that the revision would have a negative impact on the economy amid the current global economic slowdown, adding that it would result in more uncertainties to the country's investment climate.

“Jokowi has the chance to focus on carrying out the country’s development, but first he must issue the Perppu,” the CORE Indonesia research director said, adding that the KPK law revision will “interfere with government's development agenda as a result of continuous [political and social] tensions”.

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