President Prabowo Subianto recently announced his decision to eliminate the bonus scheme, known as tantiem, for commissioners and directors of loss-making state-owned enterprises (SOEs). He expressed his concerns about the questionable practices surrounding tantiem, referring to it as a profit-sharing bonus for SOE executives, which he found to be absurd. During the presentation of the 2026 State Budget Bill at the Parliament Complex, Prabowo emphasized the need for transparency and accountability in SOEs by revealing instances where commissioners received hefty tantiem payments despite minimal involvement in company meetings.
Prabowo enforced new regulations dictating that directors of SOEs would not receive tantiem if the company was experiencing financial losses. He also emphasized the importance of ensuring that profits reported by SOEs were genuine and not manipulated figures. In an effort to streamline operations and promote efficiency, he instructed the Danantara Investment Authority to reduce the number of commissioners in loss-making SOEs, highlighting instances where companies had an excessive number of commissioners despite financial setbacks.
The president reiterated the government’s commitment to prudent public fund management and emphasized the importance of responsible spending to maximize benefits for the people. He stressed the need to cut wasteful operational expenses, improve the quality of state spending, and ensure that every rupiah spent contributes to tangible outcomes, such as job creation, increased purchasing power, and enhanced public services. Prabowo’s actions reflect a dedication to promoting accountability and efficiency in the management of SOEs to safeguard public resources and drive economic growth.