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A graft watchdog in Indonesia has sounded a red alert for the education sector as it recorded some 40 cases of corruption in 2012, causing losses to the state of around Rp139 billion (US$14.4 million).

Jakarta's Pramuka Street intersection is well known for its essay-production services, as Indonesian universities continue to be dogged by the problem of ghostwritten essays. By paying a sum, a student can graduate without making much effort writing the final-year dissertation.

The Ministry of Education and Culture is investigating a watchdog's allegation of possible corruption during the tender process of the national exam printing. The call for investigation of the tender process came after the national exam was postponed in 11 provinces when one of the companies that won the printing tender failed to deliver the test on time.

Former inspector general of the Ministry of Education and Culture has been accused of embezzling travel funds. The former inspector general will be attending the Corruption Eradication Commission (KPK) in Jakarta.

An Indonesian presidential spokesman has stated that the President has called on the Corruption Eradication Commission (KPK) to investigate alleged corruption involving the Education and Culture Deputy Minister for Culture.

Research and technology and higher education minister said that he would soon publish the names of universities that were alleged to have issued fake diplomas. He said that he had set up a special team to investigate the case and would carry out impromptu visits to the suspected universities in the near future.

After a higher education institution in Jakarta was found issuing fake degrees, the Administrative and Bureaucratic Reform Ministry said that any civil servants possessing such counterfeit documents would face demotion. Administrative and Bureaucratic Reform Minister said on Tuesday that the ministry’s inspectorate was examining the validity of its own civil servants’ degrees and would soon send a notification to every ministry to do the same.

The National Police say more complaints have been lodged against higher education institutions that are alleged to have issued fake degrees since the Research and Technology and Higher Education Ministry filed a report against one such institution last month. The National Police’s detective division chief said that they were currently looking into reports from the Medan Police in North Sumatra which targeted the University of North Sumatra.