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In this research, we estimate that bureaucratic as a business obstacles for privat sector. So, we use anonym survey that
the firm give respond regarding permit obstacles and bribery disclosure. Other previous studies, use business obstacles
related to economic growth, credit access(Anderson, 2019; Wellalage, Locke, & Samujh, 2019; Wu, 2018).

This research contributes to literature and can be a suggestion to public sector organization. The findings support the
fraud triangle theory, particularly explain business obstacles as a pressure had significant positive to probability firm’s
bribery behavior. As we know that difficult to get bribery disclosure, because it is sensitive issue. This research use
credible data regarding firm-level enviroment from World Bank. The practical implication for public sector organizations
are awareness of removing barriers to business so that bureaucratic reform can be fully implemented.

2.2 Literature Review
2.1 Bribery as part of Fraud
Fraud is not a new issue in the world of research, but its complexity and the times it has become an interesting topic to
discuss. In general, fraud is defined as a planned crime aimed at benefiting both individuals and groups. The beginning
of fraud was identified by Edwin H. Sutherland in 1939, known as the concept of white collar crime (White Collar
Crime), which is a crime committed by someone who is honorable and has a position (Pimenta & Afonso, 2014). This
crime occurred in political, corporate, trade, and professional life. The reality of this crime creates distrust and social
disorganization on a large scale resulting from the roots of society itself.

From an economic point of view, fraud is financial fraud. The importance of financial numbers for determining
organizational performance. Most organizations have budgets, professionals are trained to run organizations based on
financial figures. Research in this area leads to the systematics of fraud and its instruments.

Viewed from the psychological discipline, fraud is a human action. Even though fraud is a group or industrial
phenomenon, there must be initiators who have significant power and influence (Ramamoorti, Morrison, Koletar, &
Pope, 2013). Fraud requires emotions to distract and persuade, defense for both the perpetrator and the victim to be
able to rationalize. Research in this area helps find out how people who are involved in fraud will indirectly know that
their surroundings also play a role.

Donald Cressey stated that fraud is a violation of trust. Cressey examines why employees have access to finance in the
company, some are abusing and some are not. In his hypothesis, Cressey identified that:

“[…] Trusted persons have become trust violators when they conceive of themselves as having a financial problem
which is non-sharable, are aware that this problem can be secretly resolved by violation of the position of financial
trust, and are able to apply to their own conduct in that situation verbalizations which enable them to adjust their
conceptions of themselves as trusted persons with their conceptions of themselves as users of the entrusted funds or
property (Cressey, 1973) (emphasis added). “

Subsequent fraud research by the KPMG team, one of which was W. Steve Albrecht, concluded that fraud can occur when
there is a pressure situation, opportunities and personal integrity (Homer, 2019). The difference in KPMG’s research is
that fraud is not always motivated by financial pressures but rather situational. These three elements became known
as the fraud triangle.

The Association of Certified Fraud Examiners. (“Association of Certified Fraud Examiners - Fraud 101,” n.d.) divides fraud
into 3 main types as follows:

1. Corruption
Operationally, corruption is an abuse of power for personal gain. Generally, corruption does not find financial
statement misstatements by their corruptors, but knowingly arranges transactions or makes representations that
allow other organizations to misstate their financial statements. Conflicts of interest in buying, selling and other

178 International Conference on Sustainability
(5 Sustainability Practitioner Conference)
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