State Loses Rp15,400 Trillion from Export Fraud, Government Forms Danantara Sumberdaya

JAKARTA, KOMPAS.com - Indonesian President Prabowo Subianto has revealed practices of trade manipulation and misreporting of exports. This prompted the establishment of a commodity-export body named PT Danantara Sumberdaya Indonesia.

These fraudulent practices have cost Indonesia up to USD 908 billion, or Rp15,400 trillion, over 34 years from 1991 to 2024.

‘During the last several decades what happened? What happened is what is called under-invoicing. Under-invoicing is actually fraud,’ Prabowo said during a speech at the 19th Plenary Session of the Indonesian House of Representatives concerning the Macro Economy Framework and Key Fiscal Policy (KEM and PPKF) of the 2027 State Budget draft (RAPBN 2027), at the DPR building, Jakarta, on Wednesday, 20 May 2026.

‘Under-counting refers to practices or errors in recording that produce figures lower than actual.’

‘Transfer pricing refers to pricing policies for transactions between parties with special relationships.’

‘According to Prabowo, for decades these frauds were allowed to continue, costing the state trillions of rupiah.’

‘What is sold by the entrepreneurs is not reported as it should be. Many of them set up offshore companies. He sells from his domestic company to his overseas company at prices far below actual values,’ he said.

‘He explained that export data manipulation may be carried out domestically, but cannot be hidden in the destination country because all transactions are recorded.’

‘We can lie, at Indonesian ports we could ship 10,000 tonnes of coal. Reported figures show only 5,000 tonnes. It can be done in Indonesia, (but) not there; there it is recorded,’ he said.

‘The President said the practices occur across various sectors of national strategic commodities, such as palm oil, iron alloy, and other export commodities.’

‘That is fraud on paper,’ Prabowo said.

‘Therefore, Prabowo urged all parties to be brave in speaking the truth and to reform state institutions, including the customs sector.’

‘We must be bold to say what is red and what is white. We must reform our government institutions. (Directorate General) of Customs must be improved,’ he added.