<p>Corruption remains a persistent challenge in Indonesia, particularly at the local government level, where political and institutional factors shape its prevalence. Despite numerous anti-corruption initiatives, research on corruption dynamics and policy effectiveness at the local level remains fragmented and limited. This paper seeks to bridge this gap by conducting a systematic literature review (SLR) of corruption and anti-corruption efforts in Indonesia’s local governance. Employing a SLR guided by PRISMA methodology, data were sourced from Scopus, Web of Science, JSTOR, and SINTA Indonesia. The findings indicate that the success of anti-corruption policies at the local level depends on institutional reforms, capacity-building initiatives, and community participation. While external oversight mechanisms are generally more effective in curbing corruption, their impact is constrained without the certainty of legal sanctions. Moreover, local political dynamics, including majority coalitions and dynastic practices, often hinder anti-corruption efforts, and paradoxically, public sector reforms may sometimes reinforce the dominance of certain actors. Strengthening political and institutional reforms, along with enhanced inter-agency coordination, is therefore essential to improving the effectiveness of anti-corruption policies.</p>