Prabowo Highlights Economic Leakage and Cooking Oil Scarcity
President Prabowo Subianto has highlighted the practices of transfer pricing, under-invoicing and smuggling that are triggering national economic leakages. At a Full Cabinet Session at the State Palace in Jakarta on Monday (20 July 2026), the President stressed that these illegal practices greatly harm the nation by channelling state wealth abroad in enormous quantities.
“Under-invoicing practices, falsified reports, transfer pricing, smuggling practices — things that are truly senseless and truly unjust for our nation,” said Prabowo before the ministers of the Red-and-White Cabinet.
The President gave a concrete example of failed economic governance through the cooking oil shortage that once occurred. According to him, it is utterly senseless that Indonesia, as the world’s largest palm oil producer, should experience difficulty supplying cooking oil domestically.
“The world’s largest palm oil producing country lost its cooking oil supply for weeks on end. This is something that defies reason,” asserted the Head of State.
Prabowo warned that economic leakages amounting to hundreds of billions of US dollars must not be allowed to continue. If not swiftly halted, this will erode the state’s capacity to improve public welfare and threaten the nation’s future.
Furthermore, the President stated that the data on these economic leakages is supported by reports from various international institutions, not merely government assumptions. He affirmed that the government has a full mandate from the people to resolve this systemic problem thoroughly.
This mid-year Full Cabinet Session served as a forum for evaluating the performance of the Red-and-White Cabinet. The meeting also served as strategic preparation ahead of the President’s State of the Nation Address scheduled for 16 August 2026.
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The President also invited all elements of the nation to continue strengthening unity and mutual cooperation in facing various national challenges.
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