Prabowo: New Export Agency to Save Indonesia $150 Billion Annually

President Prabowo Subianto's administration is making a bold move to plug significant economic leaks, signaling a determined effort to bolster national revenue. The announcement that Indonesia could save up to US$150 billion per year by tackling illicit activities in exports, illegal mining, and plantations underscores the scale of the challenge and the potential rewards. This figure, presented during a plenary session at the House of Representatives, highlights a critical focus on resource governance and revenue optimization.

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The estimated potential funds that could be saved from these leakages are US$150 billion per year.

The core of the strategy involves channeling exports of key commodities – including palm oil, coal, and ferroalloys – exclusively through designated state-owned enterprises. This centralized approach is designed to drastically improve oversight, prevent practices like over-invoicing and under-invoicing, and combat capital flight. For Indonesia, a nation rich in natural resources, ensuring that these resources translate into tangible national benefit is paramount. This policy directly addresses concerns about wealth extraction and aims to ensure that export earnings contribute more effectively to the state budget and public welfare.

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Whether this can be achieved depends on our courage, determination, and ability to work together.

From an Indonesian perspective, this initiative is not just about financial savings; it's about asserting national sovereignty over its resources and ensuring that economic gains are retained domestically. While international observers might focus on the macroeconomic implications, for Indonesians, this is about strengthening the national economy and potentially funding crucial public services. The success of this ambitious plan hinges on "courage, determination, and the ability to work together," as President Prabowo stated, reflecting a call for national unity in achieving these economic goals. Tempo, as a prominent Indonesian news outlet, reports this development with a focus on its national implications and the government's commitment to economic reform.

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Sales must be conducted through an SOE appointed by the Government of the Republic of Indonesia as the sole exporter. Export proceeds will then be channelled by the designated SOE to business operators managing the activities.