President Prabowo Subianto has launched a sharp critique against\nparties who accuse the Free Nutritious Meals (MBG) programme of being a\nwaste of the budget. Prabowo questioned why far larger economic\nleakages, such as transfer pricing and under-invoicing, receive minimal\nscrutiny from experts.<\/p>\n
\"Feeding Indonesian children, pregnant women, and the elderly is\nconsidered wasteful. But thousands of trillions that evaporate, that\nleave Indonesian soil every year for 34 years, there is no comment. No\nexpert protests,\" Prabowo said at the State Palace in Jakarta on Monday\n(20\/7).<\/p>\n
The President explained that transfer pricing and under-invoicing are\nmanipulations carried out by companies to shift profits to countries\nwith low tax rates. These actions aim to minimise the tax burden of\nbusiness groups but are highly detrimental to the state due to the\nsignificant loss of potential tax and customs revenue.<\/p>\n
On the other hand, Prabowo lamented the negative narrative directed\nat the MBG programme. He noted that some parties predicted the economy\nwould collapse and the Rupiah exchange rate would weaken as a result of\nthe programme.<\/p>\n
\"But we want to feed children, at least a quarter of whom are clearly\nstunted. Most also do not eat at school. We are accused of waste, we are\ntold the economy will collapse, share prices will crash, the currency\nwill weaken,\" he stressed.<\/p>\n
Prabowo revealed that data regarding economic leakages through\nfalsified trade reports and smuggling came from various international\ninstitutions, not compiled unilaterally by the government.<\/p>\n
The President added that the government remains convinced the MBG\nprogramme is part of the constitutional mandate to improve public\nwelfare. He emphasised that national economic policy is based on Article\n33 and Article 34 of the 1945 Constitution, which oblige the state to\nmanage the economy for the people\u2019s prosperity and to care for the poor\nand abandoned children.<\/p>\n
This statement was delivered during the mid-year Plenary Cabinet\nSession, which serves as an evaluation forum for the performance of the\nRed and White Cabinet, ahead of the President\u2019s state address in August\n2026.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/prabowo-criticises-double-standards-of-mbg-critics-highlights-transfer-pricing-1784559019", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }