Indonesian Political, Business & Finance News

Prabowo Exposes Mark-up Practices in Government, Takes Immediate Action

| Source: CNBC Translated from Indonesian | Politics
Prabowo Exposes Mark-up Practices in Government, Takes Immediate Action
Image: CNBC

President Prabowo Subianto has revealed the existence of price mark-up practices in the procurement of goods and services within the government, which he identified as a source of state budget waste. According to him, the government is currently putting a stop to these practices.

He made the remarks while attending the 28th Anniversary of the National Awakening Party at the Jakarta Convention Centre on Thursday (23/7/2026). In his speech, Prabowo stated that the practice of mark-ups in government spending is no longer a secret and is already widely known by the public.

"I want to shut down these tricks from many parties. Yes, we must introspect. We already know, ladies and gentlemen, even in the regions, you all already know what has been happening, right? Is that correct? Every purchase by a government institution has always had its price inflated, correct?" Prabowo said.

He stressed that the magnitude of the price inflation was very high. Therefore, the government is working hard to stop the practice as part of improving budget efficiency. According to him, these efficiency efforts have already begun to bear fruit. Prabowo stated that the savings achieved by his administration have reached more than Rp300 trillion.

"You know, everything, sometimes the mark-ups are insane. We are currently stopping this. This is what we have saved from the first few months of the government I lead, we have managed to save more than Rp300 trillion," he said.

According to Prabowo, the budget savings are now being allocated to fund the Free Nutritious Meals programme, the construction of 5,000 bridges targeted for completion by the end of 2026, and the renovation of school buildings. "Schools are collapsing, collapsing! By the end of the year we will have repaired more than 67,000 schools. I have instructed that by 2027, it must be more, 100,000 schools—those that have not been touched for decades, brothers and sisters," he stated.

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