Indonesia Loses Trillions to Fake Exports, Harming Teacher Pay, Says President
Translated from Indonesian, summarized and contextualized by DistantNews.
At a glance
- President Prabowo Subianto highlighted massive budget leaks totaling $908 billion over 34 years due to fake export reports.
- These leaks, estimated at Rp 15 quadrillion, negatively impact state revenue, affecting teacher and civil servant salaries.
- The government is actively working to fix these systemic leaks, which stem from practices like under-invoicing by businesses.
President Prabowo Subianto has revealed that Indonesia has suffered budget leaks amounting to $908 billion over 34 years, primarily caused by businesses submitting fraudulent export reports. This staggering loss, equivalent to Rp 15 quadrillion, directly contributes to the state's insufficient funds, consequently impacting the salaries of teachers and civil servants.
We have lost 908 billion dollars over 34 years or Rp 15 thousand trillion. Rp 15 thousand trillion, my friends, these are all data, I want to convey this in this forum.
Speaking at the Nahdlatul Ulama National Conference, President Prabowo urged religious leaders to understand the root cause of inadequate public sector wages. He explained that the nation's wealth is being siphoned off through practices like under-invoicing, where companies underreport the value of their exports to authorities. For instance, a business might export 1,000 tons of a commodity but only declare half of that amount to the government.
I want you NU friends, as leaders, as scholars, as teachers, as guides of the people, to understand why teacher salaries cannot be good, why civil servant salaries cannot be good, why the budget is always insufficient, right? Because there is no money.
The president emphasized that these systemic leaks, estimated at Rp 2,500 trillion annually, are a major focus for his administration. Beyond document manipulation, he also pointed to ongoing smuggling of valuable commodities like gold and silver. "Only a foolish nation will continue a system where the nation's wealth does not remain in that nation," Prabowo stated, underscoring the urgency of rectifying these financial drains to ensure national resources benefit the country.
Only a foolish nation will continue a system where the nation's wealth does not remain in that nation.
Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.