Corruption in Banten Province, Indonesia

Corruption is an illegal behavior of official state to make rich himself or someone nearby by abusing of power. Therefore, corruption is a crucial problem that could lead a country incurs losses. In Indonesia, Banten is one province claimed to be one of the highest indication of corruption states. It could be seen by number of corruption crime (Tindak Pidana Korupsi) that increases rapidly within 2 years. Post budget is the object of corruption that causing losses of state. The impact of corruption on budget is decreasing the optimization on budget realization. The objective of this research was to analyze the influence of corruption and incorruption budget, education, labor, and investment on economic growth in Banten Province. To accommodate dynamism between those variables, regression panel data was used by choosing fix effect method. The result of this research was a finding that model is weak to explain dynamism economic growth in Banten province. Thus, variable in corruption budget influences economic growth significantly which the elasticity will be higher than the corruption budget. Another significant variable is education.