The president floated creating a special court to investigate “unproductive” boards reporting “made up” profits, as he pledged to close 750 state-owned enterprises by year-end.
South-East Asia’s biggest economy has long battled corruption in its public and private sectors, despite strengthening anti-graft laws, creating special investigative commissions and nabbing several high-profile suspects.
In successive state of the nation and budget addresses, President Prabowo Subianto that Indonesia’s vast natural wealth was not sufficiently benefiting its people.
He railed against “far too many unproductive state-owned enterprises (SOEs), always reporting losses while claiming profits”.
“Those profits are just made up,” he added.
Out of 1,074 SOEs on the books, Prabowo said 290 were already closed, and by Dec 31, only about 300 should be left operating.
“These state-owned enterprises sometimes operate as they please, with no sense of responsibility to the nation,” said the president, who took office in October 2024.
He mooted the creation of “a special ad hoc court to investigate the management and boards” of SOEs – potentially going back three decades.
But he also asked lawmakers to consider a “special amnesty for those who repent”.
Prabowo said Indonesia should benefit more from its position as one of the world’s largest producers of palm oil, nickel, tin, coal and other key commodities.
In an address to lawmakers, he called on parliament to create a new mineral and commodities exchange that would allow Indonesia to set prices.
“All too often, the price of our wealth, derived from the earth and the sweat of the Indonesian people, is determined abroad, in other countries, on foreign commodity exchanges,” Prabowo said.
“Those who don’t own these commodities ... determine their prices. This doesn’t make sense,” he added.
“If they (clients) do not want to pay the price we set, then they need not buy.”
Prabowo told parliament that efforts to revamp the SOE sector under the Danantara sovereign wealth fund, created last year to manage state assets, have already saved about 50 trillion rupiah (more than RM11.4bil) in overhead costs.
The drive included savings in directors’ and commissioners’ salaries, building and car rentals, and business travel, he said.
Indonesia scored a low 34 out of 100 on watchdog Transparency International’s Corruption Perceptions Index for 2025.
Graft has been a rallying cry for protesters decrying rising living costs as Indonesia and the region reel from high oil prices caused by the Middle East conflict.
One frequently criticised initiative is the government’s costly free school meals programme, one of Prabowo’s signature projects which he vowed Friday to continue “with improvements and efficiency”. — AFP
