Jakarta, Aug 15 (AP) President Prabowo Subianto marked the 80th anniversary of Indonesia's independence with a commitment to eradicate corruption and address the dominance of food cartels that are responsible for billions of dollars in state losses annually.
Taking office last October, Subianto made these declarations in his first State of the Nation address on Friday, after being at the helm of the country for 299 days.
“I have gained a deeper understanding of the magnitude of the challenges we face and the extent of corruption within our government,” Subianto stated to Parliament members and senior officials.
The 73-year-old former general revealed that his administration had identified and preserved 300 trillion rupiah (USD 18.5 billion) from being potentially lost to corruption. These funds were saved by curbing excessive spending on domestic and international travel by government officials and on office supplies.
“We are encountering a significant leakage of our nation's wealth, experiencing a net outflow of national resources,” Subianto noted. “Therefore, I must take action even when it may be difficult and unpopular with certain parties.”
In a passionate, televised speech, Subianto also pledged to dismantle food cartels responsible for annual losses of up to USD 6.1 billion, coining the phenomenon “serakahnomics,” combining economics with the Indonesian word for greed, “serakah.”
He promised to enforce the law and bring companies to justice, irrespective of whether they are backed by influential figures or military and police generals, “to ensure that the Indonesian people would not be victims of serakahnomics.”
Subianto expressed disbelief at Indonesia, the largest palm oil producer globally, experiencing cooking oil shortages twice in 2022, leading to price surges, despite government efforts in providing agricultural equipment, fertilizer, pesticides, and building irrigation reservoirs.
He accused local rice mills of purchasing farmers' dry, unhusked rice below the government-set price of Rp 6,500 (40 US cents) per kilogram, reaping substantial monthly profits from unjust food trading practices.
“Certain business entities utilize their financial power to dominate and manipulate those at the grassroots level, which we cannot tolerate,” Subianto asserted.
The president revealed a troubling report indicating the existence of over 1,000 illegal mines, with the potential to cost the state at least 300 trillion rupiah (USD 18.5 billion).
He noted his administration's success in reclaiming 3.1 million hectares (7.6 million acres) out of the illegally managed 5 million hectares (12.3 million acres) of palm oil plantations.
Subianto's comments highlight his ongoing efforts to clean up government practices, a key element of his campaign, which led to his 2024 election win.
Corruption remains a significant issue in Indonesia, with law enforcement and parliamentary members often perceived as corrupt by the populace of over 280 million.
The anti-corruption commission, KPK, stands as one of the few effective bodies, though it frequently faces resistance from lawmakers eager to diminish its authority.
Since its formation in late 2003, the KPK reported the arrests of approximately 250 local elected officials, including 133 regents and mayors, 18 governors, 83 national Parliament members, and 12 ministers.
Subianto urged his cabinet, political factions, and Parliament to support his campaign for a transparent government. Indonesia ranked 99th out of 180 nations in the 2024 Corruption Perceptions Index by Transparency International.
“As long as I'm president, never assume that the powerful and wealthy can act with impunity. We do not fear your influence or wealth,” Subianto declared. “The government I lead will vigorously defend the interests of the Indonesian people.”
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