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Rp100 Trillion Lost Every Year: Prabowo Vows to Crack Down on Hundreds of Companies Cheating Rice Distribution

Jakarta — President Prabowo Subianto delivered a fierce rebuke of corrupt practices in Indonesia’s rice trade, vowing to crack down on companies that repackage and inflate the price of subsidized rice. Speaking at the 27th anniversary of the National Awakening Party (PKB) on Wednesday night (July 23), the President revealed that these schemes are costing the country up to Rp100 trillion annually.

“Look at rice,” Prabowo said. “We subsidize the seeds, we subsidize the fertilizer—the factories are owned by the people, by the state. We subsidize pesticides. The reservoirs and irrigation systems are built using public money. Even the fuel for farming equipment is subsidized. But once the rice is milled—bam!—it’s repackaged and labeled as ‘premium rice’ and sold for Rp5,000 to Rp6,000 more. Is that right or fair to the people?”

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The President revealed that 212 rice milling companies have already been found guilty of such practices.

“They’ve admitted it themselves, after their products were tested in labs,” he said. “These companies must return the profits they obtained through dishonest means.”

Prabowo condemned the practice as a criminal act—one that robs the people and directly violates the Constitution.

“This is theft. It’s not just wrong—it’s criminal,” he said. “It’s outrageous and greedy. I received reports that this scheme—relabeling regular rice as premium and selling it at inflated prices—costs us Rp100 trillion each year. Rp100 trillion!”

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He emphasized that the losses could have gone toward critical improvements in public services.

“Think about it—Rp100 trillion. If this continues for five years, we’ll lose Rp1,000 trillion. With that, we could fix every school in Indonesia, support all hospitals, all Islamic boarding schools—every pesantren across the nation. A thousand trillion!”

President Prabowo said he has ordered the National Police Chief and the Attorney General to take immediate action.

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“I will not tolerate this. I’ve already instructed the Police Chief and Attorney General: Investigate. Prosecute. Confiscate.”

He stressed that his actions are not driven by personal will, but are grounded in the constitutional mandate.

“As stated in Article 33 of the 1945 Constitution, sectors vital to the state… Is rice vital to the nation? Is corn? Is cooking oil? All sectors that affect the livelihood of the people must be controlled by the state. So let’s be clear—this is not about what Prabowo wants. This is the command of the Constitution.”

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