President Prabowo Highlights $31 Trillion Wealth Extraction from Indonesia

JAKARTA – Indonesian President Prabowo Subianto recently asserted that the Netherlands extracted an estimated $31 trillion from Indonesia during its colonial rule, a figure he presented to advocate for increased national defense spending. Speaking at the Indo Defence Expo and Forum on June 11, 2025, Prabowo emphasized that this amount equates to nearly 18 times Indonesia’s current gross domestic product (GDP) of approximately $1.5 trillion and represents 'the equivalent of 144 years' of national budget expenditures.

Prabowo stated, 'According to a study published a few weeks ago, the Netherlands took resources from Indonesia valued at $31 trillion in today’s terms during their colonization of our country,' as reported by local news outlet Metro TV. However, he did not reference the specific study or its author, raising questions about the accuracy and methodology behind the claimed figure.

Historically, Indonesia was under Dutch colonial rule for nearly 350 years, from the 1600s until its declaration of independence in 1945. Initially governed by the Dutch East India Company, formal control transitioned to the Dutch state, which established the Dutch East Indies. During this period, Indonesia was a significant source of wealth for the Netherlands, particularly through the exploitation of valuable resources such as spices, coffee, and sugar. A historical study by Angus Maddison, a British economist, indicates that Indonesia contributed approximately 31.5 percent of Dutch state revenues between 1851 and 1870.

In his address, Prabowo highlighted the detrimental effects of colonial exploitation on Indonesia’s contemporary economic standing, suggesting that had the nation's wealth been protected, Indonesia could have achieved a higher GDP per capita. He stated, “If only we could protect our riches (from the Dutch back then), perhaps our GDP per capita could be among the world’s largest.” This statement reflects an ongoing discourse in Indonesia regarding the legacy of colonialism and its implications for national identity and economic policy.

Prabowo's comments come as part of a broader push to modernize Indonesia’s military. He has pledged to increase the defense budget to 1.5 percent of GDP by 2029, effectively doubling current levels. During the Indo Defence Expo, Indonesia's Defense Minister Sjafrie Sjamsoeddin announced defense contracts worth approximately 33 trillion rupiah (about $2.03 billion) that would be signed during the exhibition.

Former tensions between Indonesia and the Netherlands have garnered renewed attention, particularly in light of recent Dutch initiatives aimed at reconciling historical grievances. These include the repatriation of numerous Indonesian artifacts that were looted during colonial rule. Today, the Netherlands stands as Indonesia’s largest European investor, accounting for nearly 50 percent of total European investments in the country. Anindya Bakrie, chairman of the Indonesian Chamber of Commerce and Industry, noted that the Dutch government has allocated $300 million to support various sustainable development projects in Indonesia.

In the current climate, 120 Dutch companies are slated to visit Indonesia for a trade and investment mission, covering multiple cities and focusing on sectors critical to Indonesia's growth, including food security and maritime management. The relationship between Indonesia and the Netherlands has evolved from its colonial past into a partnership characterized by mutual economic interests and investments.

Looking forward, the implications of Prabowo's statements regarding historical wealth extraction may influence public sentiment towards defense and economic policy, as well as shape Indonesia’s diplomatic relations with former colonial powers. As the nation continues to navigate its post-colonial identity, the discourse surrounding historical injustices and their contemporary relevance remains a significant aspect of Indonesia's socio-political landscape.