Democracy in the context of regional autonomy which is expected to happen, precisely placing the oligarchy of power in the realm of local politics. Regional autonomy not just make span of government control closer to society, but also make corruption decentralized. This research tries to find out how the corruption influence economic growth in Indonesia. Using the fixed effect panel data for 492 districts/cities in Indonesia (2009-2015), this study proves that corruption in Indonesia includes grease the wheels hypothesis with a positive and significant impact on economic growth.

Keywords: Corruption, Economic Growth, Grease the Wheels Hypothesis, Panel Data, Indonesia.