A significant immigration corruption scandal involving extortion of foreigners seeking permits threatens Indonesia's efforts to attract skilled workers and investment. The arrest of high-ranking officials, including a deputy minister, has raised concerns about investor confidence.

A major immigration corruption scandal could mar Indonesia’s ambition to entice foreign funds and high-skilled workers and further tank investor confidence in Southeast Asia’s biggest economy, according to observers. The country’s Corruption Eradication Commission (KPK) last week arrested eight high-ranking immigration officials, including then deputy minister Silmy Karim, for allegedly extorting foreigners seeking residency and work permits in Indonesia. KPK also detained nine visa agents...