Indonesia Losses USD6.1B Annually from Rice Trade Fraud

(MENAFN) Indonesian President Prabowo Subianto voiced urgent alarm on Monday regarding widespread fraud causing enormous financial damage in the nation's rice market.

According to reports he received, powerful food cartels have been manipulating rice prices and supply chains, leading to staggering annual losses estimated at 100 trillion rupiahs (approximately 6.1 billion U.S. dollars). These illicit gains benefit only a handful of dominant business entities.

"The loss is not just a matter of numbers, but concerns the fate of our farmers, consumers, and national stability. Therefore, we must take firm action to stop these lame and harmful practices," Prabowo stated during a village cooperative launch event in Klaten regency, Central Java, as cited by the Presidential Secretariat Office.

He further emphasized the damage done to the nation, especially at a time when the government is striving to boost revenue through taxes and excise duties. "This is very detrimental to the country, especially when the government is working hard to secure income through taxes and excise," he added.

Prabowo highlighted the stark disparity within the food industry: while farmers are paid minimal prices, millers and large distributors continue to profit significantly.

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