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🇮🇩 Indonesia /Elections & Politics

Indonesia Must Control Natural Resources, Minister Says

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

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  • Indonesia's Coordinating Minister for Food, Zulkifli Hasan, emphasized the state's need to regain control over natural resource management.
  • Hasan stated that natural resources must benefit the people and not be excessively controlled by specific entities, citing examples of mismanagement in mining and plantations.
  • He highlighted that the government of President Prabowo Subianto is working to reclaim control over illegal plantations and curb revenue leakage through transparent data.

Coordinating Minister for Food Zulkifli Hasan stressed the critical need for Indonesia to reclaim control over its natural resources, asserting they must serve the public interest and not fall under the excessive sway of private entities. Speaking at the Indonesian Islamic Congress in Jakarta, Hasan argued that while businesses can participate in resource management, the state must retain the authority to regulate and distribute benefits.

The entrepreneurs can, but the one who divides is the government, the state.

— Zulkifli HasanSpeaking at the Indonesian Islamic Congress in Jakarta, explaining the principle of state control over resource distribution.

"The entrepreneurs can, but the one who divides is the government, the state," Hasan stated, emphasizing that this principle should not be reversed. He pointed to past issues where resource management, including mining and plantations, was marred by improper licensing and potential revenue leakage. Hasan cited discrepancies in reported production and export values, where stated domestic prices were lower than actual international sales, calling it a "moral hazard."

He noted that such practices extended to palm oil, mining, and fisheries, with instances of single permits being used for multiple vessels. Hasan recalled past attempts to curb illegal mining and plantations, acknowledging the difficulty due to entrenched interests. However, he credited President Prabowo Subianto's administration with actively reclaiming control, leading to approximately four million hectares of illegal plantations being brought under state management.

Don't reverse it. This belongs to the state, the state divides it. This has been straightened out by the President.

— Zulkifli HasanEmphasizing the correct order of state authority in managing and distributing national wealth.

Hasan also addressed the mismatch between Indonesia's export data and that of its trading partners and international bodies. He believes resolving these data discrepancies is crucial to prevent the loss of potential state revenue. The minister indicated that all import and export activities are now channeled through a single window, DSI, to ensure transparency and accurate revenue capture.

Selling for 20 thousand, reporting 10 thousand here. That's a moral hazard.

— Zulkifli HasanIllustrating potential revenue leakage through manipulated production data.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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