President Prabowo Subianto recently made a significant decision to abolish the bonus scheme, known as tantiem, for commissioners and directors of state-owned enterprises (SOEs) that are operating at a loss. He also implemented a reduction in the number of commissioners in these companies. During the presentation of the 2026 State Budget Bill, Prabowo expressed his disapproval of the profit-sharing bonuses given to SOE executives, referring to it as an absurd practice.
He highlighted instances where SOE commissioners received substantial tantiem payments without actively participating in the company’s activities. Prabowo emphasized the need for transparency in financial matters, ensuring that profits are genuine and not manipulated. He firmly stated that directors should not receive bonuses if the company is facing financial losses, urging for responsible management of public funds.
Furthermore, Prabowo addressed the issue of excessive commissioner numbers in some loss-making SOEs and mandated the Danantara Investment Authority to streamline the management structure. He stressed the importance of efficient state spending to benefit the public, create employment opportunities, and enhance the quality of public services. Prabowo’s commitment to financial accountability and prudent management of resources resonated with many, signaling a new era of transparency and resource optimization in SOEs.
