Prabowo targets US$150 Billion from export reform

Such policy is carried out, according to him, as fraudulent practices such as export value manipulation through over- and under-invoicing, as well as illegal mining and plantations, have caused losses that should have benefited the country.

“We have calculated a potential savings of US$150 billion a year from these leaks,” Prabowo remarked while presenting the government’s 2027 Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF) during a plenary session of the House of Representatives (DPR) in Jakarta on Wednesday.

“This is a strategic potential. Whether we can manage it or not depends on our courage and determination,” he added.

As a response, the President announced the issuance of a Government Regulation concerning the Management of Natural Resource Commodity Exports.

The regulation requires state-owned enterprises (SOEs) to become sole exporters of several natural resource commodities, including palm oil, coal and ferroalloys.

“We require that sales be conducted through a state-owned enterprise appointed by the government as the sole exporter. This means that the proceeds from each export sale will be passed on by the government-appointed state-owned enterprise to the business actors managing the activity,” Prabowo explained.

This new policy aims to strengthen oversight and eradicate fraudulent practices, including under-invoicing, transfer invoicing and foreign exchange embezzlement from export proceeds.

“This policy will optimize tax revenues and state revenues from the management and sale of our natural resources,” Prabowo emphasized.

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Translator: Prisca Triferna Violleta, Yashinta Difa