Indonesian Political, Business & Finance News

President Prabowo: Over IDR 1,000 Trillion in State Wealth Leaks Annually, 'I Am Stopping It'

| Source: CNBC Translated from Indonesian | Economy
President Prabowo: Over IDR 1,000 Trillion in State Wealth Leaks Annually, 'I Am Stopping It'
Image: CNBC

President Prabowo Subianto has disclosed that Indonesia is grappling with economic leakages of more than IDR 1,000 trillion lost each year. He also noted that Indonesia’s level of economic efficiency still lags behind other nations. This was revealed during the 28th Anniversary of the National Awakening Party (PKB) at the Jakarta Convention Center on Thursday (23/7/2026). Prabowo stated that experts consider the Indonesian economy to be inefficient. According to him, this indicates the magnitude of state wealth leakage. ‘Ladies and gentlemen, all experts, when discussing the Indonesian economy, say that Indonesia’s economy is inefficient. What does inefficient mean? It means a lot of wealth is leaking!’ Prabowo said. He explained that the indicator for measuring efficiency is the Incremental Capital Output Ratio (ICOR), which currently stands at 6.5. Prabowo estimated that around 30% of Indonesia’s wealth is still subject to leakage. Assuming a state budget of around US$270 billion, or IDR 3,700 trillion, he said the value of the leakage amounts to more than IDR 1,000 trillion. ‘So if 30% is leaking, that means more than IDR 1,000 trillion is leaking! I am stopping this!’ he asserted.

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