Hasan Nasbi Exposes Alleged Fraudulent Practices in Palm Oil and Coal Sectors

Hasan Nasbi, the Special Adviser to the President for Communications, has disclosed the existence of fraudulent practices in the trade of strategic commodities over the last 40 years, which have resulted in significant losses for the state. According to him, many parties are aware of these practices but lack the courage to speak out, asserting that only President Prabowo Subianto has shown the resolve to take a firm stance.

“Our economic practices over the last 40 years may involve something that is common knowledge. Those in the sector know these incidents are actually happening, but they do not want to discuss them, nor do they want to find solutions to these problems,” Hasan stated, as quoted from his Instagram account on Tuesday.

Hasan explained that in the overseas trade of coal and palm oil, certain practices have long been occurring, such as ‘undercounting’, where the recorded volume of exported goods is significantly lower than the actual amount exported. “For example, if the export is 10, only 5 is recorded, and the remaining 5 is unknown,” he said.

There is also the practice of ‘underinvoicing’. For instance, an export value of Rp100 billion might be claimed as only Rp50 billion. Additionally, he noted the practice of ‘transfer pricing’, which involves manipulating export prices to foreign markets through affiliated companies. “I establish an Indonesian company and also establish a company in Singapore, for example. I sell from my Indonesian company to my Singaporean company at a price below the market rate. If the normal price is Rp15,000, I sell it for Rp10,000,” Hasan explained.

Under this practice, the Singaporean company then sells to the next buyer at the market price of Rp15,000. “The benefit, that Rp5,000 difference, is not enjoyed by my company in Indonesia. The money is not in my Indonesian company, but in my Singaporean company. Who holds the money? It is not Indonesia,” he added.

Hasan stated that these practices cost Indonesia up to Rp2,600 trillion per year. He mentioned that President Prabowo is now taking steps to address these issues by establishing a single-door trading system through Danantara Sumber Daya Indonesia. “This bold step is being taken to restore the rights of the people and uphold economic sovereignty,” he concluded.