Indonesia Plundered: Earth Stripped, Environment Wrecked, Dollars Smuggled Abroad

Senior economist and former Minister of the Economy Fuad Bawazier believes that Article 33 of the Constitution must be re-enforced by the government if Indonesia’s economy is to recover. Fuad stated that Indonesia’s natural wealth has long been subjected to excessive theft and seizure by criminal actors, causing great harm to the nation, as recently articulated by President Prabowo Subianto. “So, if it goes through the government so that the dollars enter government coffers, there is a tangible form, and the rupiah strengthens,” he said during a CNBC Indonesia programme, quoted on Thursday (11/6/2026). He cited the era of President Soeharto as an example, where the application of Article 33, particularly for oil and gas commodities, successfully optimised foreign exchange reserves. Similarly, in countries like Saudi Arabia, state-controlled management of natural resources bolsters foreign reserves, thereby strengthening the riyal’s exchange rate against the dollar. Fuad asserted that many thieves are currently eroding Indonesia’s wealth. This is visibly reflected in two indicators: economic growth and the tax ratio. He pointed to the era of President Jokowi, where mining and palm oil were aggressively promoted as economic drivers, yet economic growth remained at 5% and the tax ratio fell into single digits. “Why? Because the theft is beyond the pale. They claim there are millions of hectares of palm oil, but in reality, it is many times over. As for mining, it is even acknowledged by the government that there are thousands of illegal mines. The illegal mines are so numerous. Even those holding permits engage in illegal mining. Protected forests are just dug up,” he remarked. “Now there are holes everywhere, scars across Kalimantan; when we look down from above, Sulawesi, Sumatra are flooding — these people no longer have any sympathy whatsoever for the Republic of Indonesia. It has gone too far.” However, despite numerous theft cases and the government’s acknowledgement of rampant illegal mining, Fuad believes the government lacks firmness in enforcement. This emboldens the perpetrators to continue their illegal activities. “The single fault is that we do not enforce the law properly. When someone is guilty, they get accommodated,” he added. For this reason, Fuad argues that the management of natural wealth must revert to the government as stipulated in clauses 2 and 3 of Article 33 of the Constitution. The frequently discussed content of these clauses states: 2. Sectors of production which are important for the country and affect the life of the people shall be under the powers of the State. 3. The land, the waters and the natural resources within shall be under the powers of the State and shall be used to the greatest benefit of the people.