Prabowo targets US$150 Billion from export reform - ANTARA News
Jakarta (ANTARA) - President Prabowo Subianto stressed the government’s efforts to eradicate illegal mining and plantation practices, as well as fraud, which may secure Indonesia US$150 billion a year through the establishment of natural resources export agency.
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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Prabowo targets US$150 Billion from export reform
May 20, 2026 18:55 GMT+700
President Prabowo Subianto presenting government Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF) for the 2027 fiscal year at a House of Representatives plenary session in Jakarta, Wednesday (May 20, 2026). /ANTARA FOTO/Rivan Awal Lingga/app/kye/aa.
Translator: Prisca Triferna Violleta, Yashinta Difa