Indonesia is currently facing a critical economic issue, with a significant amount of national wealth flowing out of the country. This has been a persistent problem for decades, with wealth leaving Indonesia and benefiting foreign nations instead. This situation can be likened to a body losing blood, as the nation is financially hemorrhaging.
During the colonial period, particularly under the Dutch East India Company (VOC) era, Indonesia’s wealth outflow was starkly evident. Today’s circumstances are less overt but equally damaging. The leakage of wealth can be seen in various economic indicators, such as trade balances and foreign deposits of Indonesian entrepreneurs and companies.
Analyzing export-import data from 1997 to 2014, it is clear that Indonesia has lost a significant amount of wealth due to underreported exports and trade misinvoicing. This has led to billions of USD being drained out of the country. Even profits generated from exports are often not kept within Indonesia, with foreign companies benefiting more than the local economy.
The problem of wealth outflow is not new and has been a systemic issue for centuries. Indonesian leaders like Sukarno have addressed this issue in the past, highlighting how wealth continues to flow out of the country, benefiting foreign entities. The lack of transparency and the silence of the elite on this matter have further exacerbated the problem.
Indonesia’s inability to retain its wealth is causing economic instability and contributing to the widening wealth gap in the country. The poor are marginalized, while the rich continue to prosper. Despite efforts to address the issue, such as direct aid from the government, the problem persists. Indonesian elites need to take more decisive action to repatriate the wealth parked abroad and ensure that profits generated within the country benefit Indonesia’s economy and its people.
