Medan is one of Indonesia's most important trading centres. Despite the economic crisis, it is a place of enormous wealth and opportunity, with its network of export-oriented natural resources, production and processing companies, and entrepreneurs with their marketing and distribution skills. The many Asian, European and American companies operating here attest to its investment value. But the city has another side, as the allegations arising from the mayoral election dramatize. Medan is notorious across Indonesia and beyond for the pervasiveness of its corruption.
Collusion is a way of life.
Pay-offs are offered even before they are solicited. Anyone who has felt trapped in the red tape of another country's bureaucracy may be happy to see how easy it is to cut through obstacles in Medan. A little well-placed cash works wonders. Whether one is seeking approval for an investment, competing for a public-works contract or trying to avoid compliance with a restrictive regulation, in Medan money talks fluently. For this reason some investors are enthusiastic about the situation they find when they come to North Sumatra.