Indonesia is currently facing a critical economic issue: the persistent outflow of national wealth. A substantial portion of Indonesia’s economic wealth is stored and utilized overseas. This financial hemorrhaging has been ongoing for decades, with wealth leaking out of the country every year. This situation is akin to colonial times when the Dutch East India Company (VOC) profited from Indonesia’s economic growth while banking the profits in the Netherlands.
To address this issue, it is important to look at various economic indicators such as trade balances and ownership structures of exporting companies. An analysis of Indonesia’s export-import ledgers from 1997 to 2014 revealed significant export amounts, but these figures may be underreported. Export leakages due to trade misinvoicing are estimated to be substantial, amounting to billions of dollars.
Additionally, Indonesian entrepreneurs and companies are parking large sums of money overseas, which hinders economic growth and development within the country. Profit from exports often goes to foreign companies with accounts abroad, further exacerbating the outflow of wealth from Indonesia.
This systemic problem has persisted for centuries, as highlighted by Sukarno in his speech “Indonesia Menggugat,” where he addressed the outward flow of wealth. The Dutch colonization era also saw significant profits being extracted from Indonesia. The failure to address this issue has led to economic challenges and disparities within Indonesia.
Prabowo Subianto emphasizes the need for transparency and honesty in addressing this issue. The elite’s silence on the outflow of national wealth and the marginalization of the poor raises questions about the distribution of wealth in Indonesia. Efforts to repatriate funds parked abroad are crucial for stimulating Indonesia’s economy and improving the livelihoods of its citizens.
