Perc rates Indonesia most corrupt in Asia

The Philippines and Vietnam also came in at the bottom of the annual graft rankings by the Political and Economic Risk Consultancy Ltd. (Perc), which listed Singapore, Japan and Hong Kong as the cleanest places for business.

"The issue of corruption could make or break Indonesia," said Perc, which polled over 900 expatriate respondents across Asia in January and February.

It said "relative outsider" Susilo Bambang Yudhoyono was elected Indonesian president last year partly because voters were "disgusted with the corruption of an entrenched, secular elite."

Perc urged Yudhoyono to make sure that foreign aid was used transparently in projects that benefit people and areas affected by last December's tsunami that left over 220,000 Indonesians dead or missing, mostly in Aceh province.

If the former general succeeds in fighting corruption, the economy would improve and radical Islamic groups such as Jemaah Islamiyah "will be much more marginalised and less of a threat to the country and the region."

In the Perc survey, now into its 18th year, countries are graded between zero -- the best possible score -- and 10.