President Prabowo Subianto marked Indonesia’s 80th independence anniversary with a resolute pledge to eradicate corruption and dismantle food cartels responsible for billions in annual state losses, according to AP News.
Delivering his inaugural State of the Nation address after 299 days in office, the 73-year-old former general confronted widespread graft head-on before Parliament and senior officials.
“I have a deeper understanding of the magnitude of the challenges we face and the extent of corruption within our government,” Subianto stated.
His administration claims to have identified and safeguarded 300 trillion rupiah ($18.5 billion) in this year’s state budget previously vulnerable to misappropriation, citing excessive spending on official travel and stationery.
“We are facing the reality of a massive leakage of our nation’s wealth, we are in a net outflow of national wealth condition. Therefore, I am obliged to take action even if it is difficult and disliked by certain parties,” Subianto declared.
In a televised speech, Subianto specifically targeted food cartels, labelling their exploitative practices “serakahnomics,” a blend of economics and the Indonesian word for greed (“serakah”). He attributed annual losses of $6.1 billion to this phenomenon.
The President vowed uncompromising enforcement “to make sure that the Indonesian people would not be victims of serakahnomics,” promising action against companies regardless of backing by “powerful figures or military generals and police.”
He highlighted the paradox facing the world’s largest palm oil producer, calling it “very strange and unreasonable” that Indonesia suffered cooking oil shortages and price surges in 2022, alongside persistent food affordability issues, despite substantial agricultural subsidies.
Subianto accused rice mills of systematically underpaying farmers, purchasing unhusked rice below the government-set price of 6,500 rupiah (40 US cents) per kilogram to reap millions in monthly profits.
“There are some business people who use their capital power to dominate and manipulate the lives of the people at the bottom and we cannot accept this,” he asserted.
The President further revealed over 1,000 illegal mines potentially costing the state at least 300 trillion rupiah ($18.5 billion). His government has reportedly reclaimed control of 3.1 million hectares out of 5 million hectares of palm oil plantations previously managed illegally.
These pledges underscore Subianto’s campaign commitment to clean governance in a nation ranked 99th out of 180 in Transparency International’s 2024 Corruption Perceptions Index. Since its establishment in 2003, the Corruption Eradication Commission (KPK), which frequently faces legislative attempts to curtail its powers, has arrested approximately 250 local officials, including 133 regents and mayors, 18 governors, 83 national MPs, and 12 ministers.
“As long as I’m president, never assume that the great and the rich can do whatever they want. We are not afraid of your greatness or wealth. The government that I lead will not hesitate to defend the interests of the Indonesian people,” Subianto warned.
