Foreign bribery is a crime that occurs when an individual or company
gives, promises, or offers something of value to a foreign official or person
holding a public position in another country to obtain or retain a business
advantage. This research explores the negative impact of the shadow economy,
with a special focus on the practice of foreign bribery in Indonesia. This study
uses a normative juridical approach. Researchers analyze and process collected
materials qualitatively to classify legal materials and content analysis. The study's
findings indicate that foreign bribery, a form of corruption involving illegal
transactions between companies and foreign officials, is one manifestation of the
shadow economy. This phenomenon threatens Indonesia's economic stability,
social justice, and institutional integrity. Foreign bribery is against the principles
of Pancasila, the Indonesian nation's basic ideology. This practice produces social
and economic injustice by benefiting some people while harming others, often the
most vulnerable. Indonesia needs urgent action to combat foreign bribery and its
negative impact on the shadow economy. Through regulation of foreign bribery,
effective law enforcement, and public education about the dangers of foreign
bribery, Indonesia can strengthen the principles of Pancasila and build a more just
and prosperous society.