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🇮🇩 Indonesia /Economy & Trade

President Prabowo vows to stop Rp1,000 trillion budget leakage

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

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  • Indonesian President Prabowo Subianto vowed to stop the leakage of national wealth, estimated at over Rp1,000 trillion (approximately $62 billion USD).
  • Prabowo cited the Incremental Capital Output Ratio (ICOR) of 6.5 as an indicator of economic inefficiency and wealth leakage, stating that about 30% of the nation's wealth is lost.
  • He claimed that savings from curbing these leaks in the first few months of his administration have already reached Rp300 trillion, which is being allocated to priority programs like nutrition and infrastructure development.

Indonesian President Prabowo Subianto has declared a strong commitment to halting the leakage of national wealth, which he estimates exceeds Rp1,000 trillion (approximately $62 billion USD). This initiative aims to ensure state funds are optimally utilized for infrastructure development and public welfare.

What does inefficient mean? It means a lot of wealth is leaking. They give that value. They calculate that our economy, our ICOR, is 6,5.

— President PrabowoExplaining the concept of economic inefficiency and its relation to wealth leakage using Indonesia's ICOR.

Speaking at the 28th anniversary of the National Awakening Party (PKB) in Jakarta, President Prabowo highlighted analyses from experts pointing to Indonesia's economic inefficiencies. He explained that these inefficiencies are indicative of significant national wealth leakage, referencing the Incremental Capital Output Ratio (ICOR). Indonesia's ICOR was recorded at 6.24 in 2025 and 6.50 in 2024. Prabowo stated that an ICOR of 6.24 means Indonesia needs to invest approximately $6.24 to achieve $1 in economic growth, a figure higher than some neighboring countries.

"What does inefficient mean? It means a lot of wealth is leaking. They give that value. They calculate that our economy, our ICOR, is 6.5," Prabowo said. He elaborated that this difference represents a substantial loss, estimating that about 30% of the nation's wealth is being leaked. "If 30% leaks, it means more than Rp1,000 trillion leaks. I am stopping this. I want to close this," he asserted, pointing to practices like price gouging within government institutions.

This means 30 percent of our wealth is leaking. The state budget is 270 billion dollars, roughly Rp3,700 trillion. So, if 30 percent leaks, it means more than Rp1,000 trillion leaks. I am stopping this. I want to close this.

— President PrabowoQuantifying the estimated wealth leakage and stating his intention to stop it.

President Prabowo claimed that by stopping these leaks in the initial months of his administration, his government has already saved around Rp300 trillion. These saved funds are being directly allocated to priority programs that address public needs, such as "nutritious food" and the construction of "5,000 bridges" by December 2026. He also expressed appreciation for the PKB's support for the government's policy direction.

This is what we use for nutritious food. This is what we use for the bridges, we are building 5,000 bridges by December 2026. If necessary, next year we will build more.

— President PrabowoDetailing how the saved funds from curbing leaks are being allocated to priority programs.
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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