Indonesia is currently facing a significant economic challenge, which is the continuous outflow of national wealth. A large portion of the wealth generated in Indonesia is being stored and utilized overseas, leading to a situation where the country is financially hemorrhaging. This issue has been ongoing for decades and can be traced back to the colonial period, resulting in centuries of economic exploitation.
During the Dutch East India Company (VOC) era, Indonesia’s wealth was visibly flowing out of the country, prompting resistance from the Generation of ’45. The VOC was a dominant economic force at that time, profiting from Indonesia’s high economic growth while banking the earnings in the Netherlands. Today, the outflow of wealth is less apparent but equally damaging, with many Indonesians unaware or complacent about the situation.
Analyzing Indonesia’s trade balance and the ownership structures of exporting companies reveals the extent of wealth leaving the country. Export figures from 1997 to 2014 show significant earnings, but there are suspicions of underreporting, misinvoicing, and profit leakage to foreign accounts. The Finance Minister disclosed that Indonesian entrepreneurs and companies have around IDR 11,400 trillion parked overseas, a vast sum that could greatly benefit the country’s economy if repatriated.
The majority of Indonesia’s export profits are controlled by foreign companies, who often operate in the country but keep their earnings abroad. This contributes to the lack of capital in Indonesian banks and hinders economic development. The issue of wealth outflow is not new, dating back to Sukarno’s era, where he also highlighted the exploitation of Indonesia’s resources for the benefit of foreign entities.
Prabowo Subianto emphasizes the importance of addressing the systemic issue of wealth outflow and the need for transparency in discussing the country’s economic challenges. The elites in Indonesia have been criticized for not being forthcoming about the situation and allowing the poor to be further marginalized while the rich continue to prosper. Repatriating the trillions of Rupiah held overseas could significantly benefit Indonesia and its citizens, but the lack of action from the elites is concerning. Prabowo advocates for speaking the truth about Indonesia’s economic realities, even if it means being blunt, in order to work towards a prosperous and economically independent future for the country.
