Indonesian Political, Business & Finance News

President Prabowo Alarmed by Massive State Wealth Leakage, Cites Illegal Palm Oil and Mining

| Source: CNBC Translated from Indonesian | Politics
President Prabowo Alarmed by Massive State Wealth Leakage, Cites Illegal Palm Oil and Mining
Image: CNBC

President Prabowo Subianto has uncovered significant state revenue leakage caused by illegal practices, including unlawful palm oil plantations and mining operations. He stated that the government is currently improving governance in both the plantation and mining sectors.

This was revealed during the closing of the National Alim Ulama Conference and the 2026 NU Grand Conference in Bangkalan, Madura, East Java, on Tuesday (23/6/2026).

In his address, Prabowo admitted he was shocked by the amount of state wealth lost during his 18 months in office. He is determined to stop the extensive leakage of state assets, particularly from the extractive natural resources industry.

He recounted that the government has already reclaimed over 5 million hectares of palm oil plantations that were operating in violation of the law.

‘My government has seized back, reclaimed more than 5 million hectares of illegal palm oil plantations. Those that did not comply with regulations, those that established plantations in protected forests, those that falsified reports,’ Prabowo said.

Furthermore, Prabowo explained that his administration has shut down hundreds of mines operating without permits, which were making billions in profit through smuggling.

‘There are mines that generate hundreds of billions of Rupiah every month. Gold, silver, very expensive metals. To this day, smuggling is still ongoing. We have deployed the Navy, Customs, thousands of soldiers, yet it still happens,’ Prabowo stated.

According to Prabowo, efforts to improve natural resource governance are not easy. He noted that Indonesia is a vast and wealthy country, requiring a clean and corruption-free government.

‘This is not a light task. But we have no choice; we must do whatever it takes to save our country. No country can survive if its resources are continuously plundered while its people remain poor,’ he said.

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