May 20, 2026 | 05:00 pm
TEMPO.CO, Jakarta - President Prabowo Subianto said the government is seeking to eliminate illegal mining and plantation activities, as well as fraud, in an effort to address an estimated US$150 billion in potential annual losses linked to export-related practices.In presenting the Macroeconomic Framework and Fiscal Policy Principles during the 19th plenary session of the House of Representatives (DPR RI) for the 2025-2026 legislative year on Wednesday at the parliamentary complex in Senayan, Jakarta, the President said practices such as export value manipulation through over-invoicing and under-invoicing, as well as illegal mining and plantations, have resulted in losses that could otherwise benefit the public.“The estimated potential funds that could be saved from these leakages are US$150 billion per year,” Prabowo said.“Whether this can be achieved depends on our courage, determination, and ability to work together,” he added.In response, the government has introduced measures to strengthen governance over several commodities. The President said a Government Regulation on the Governance of Natural Resource Commodity Exports has been issued.Under the regulation, Prabowo said state-owned enterprises (SOEs) will act as the sole exporters for commodities including palm oil, coal, and ferroalloys.“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,” he said.The policy is intended to strengthen oversight and reduce practices such as under-invoicing, transfer pricing, and capital flight from export earnings.“The policy is expected to optimize tax revenues and state income from natural resource management and exports,” Prabowo said.Earlier, Prabowo delivered the macroeconomic framework and fiscal policy principles for the 2027 draft state budget during the same DPR plenary session, which was attended by 451 lawmakers and declared quorate by House Speaker Puan Maharani.The plenary session also included discussions on the government’s fiscal framework presentation, a report on revisions to the 2026 Priority National Legislation Program, and deliberations on a proposed amendment to the National Police Law.Read: Prabowo Claims He Is Highly Respected During Overseas VisitsClick here to get the latest news updates from Tempo on Google News
