President Prabowo Subianto has recently announced the elimination of the bonus scheme, also known as tantiem, for commissioners and directors of state-owned enterprises (SOEs) running at a loss, along with the reduction in the number of commissioners in these companies. He highlighted the questionable practices surrounding tantiem, referring to it as a profit-sharing bonus for SOE executives. During a presentation of the 2026 State Budget Bill, Prabowo expressed his surprise at the lavish tantiem payments made to some commissioners who only attended monthly meetings, receiving up to Rp 40 billion annually. Emphasizing the need for transparency and accountability, he instructed that directors should not receive tantiem when the company is incurring losses, insisting on genuine profits rather than manipulated figures. In an effort to streamline operations and enhance efficiency, Prabowo ordered a reevaluation of the number of commissioners in loss-making SOEs, aiming to reduce the excessive presence to a maximum of six individuals, with an ideal range of four to five. He emphasized the importance of responsible spending of public funds, stressing the significance of maximizing benefits, creating jobs, boosting purchasing power, and enhancing public services through effective governance. The move to tighten control over SOEs and prioritize prudent financial management reflects Prabowo’s commitment to upholding integrity and accountability in state spending.
Prabowo Criticizes SOE Bonuses Scrapping as a Strategic Move
