President Prabowo Subianto has recently announced the elimination of the bonus scheme, known as tantiem, for commissioners and directors of state-owned enterprises (SOEs) that are operating at a loss. In addition to this, he has also decided to reduce the number of commissioners in these companies. Prabowo highlighted the questionable practices surrounding tantiem, referring to them as profit-sharing bonuses given to SOE executives. He expressed his disbelief in these practices during his presentation of the 2026 State Budget Bill, emphasizing the need for transparency and accountability in the management of public funds.
Prabowo shared examples of SOE commissioners receiving significant tantiem payments despite minimal participation in company meetings. He questioned the validity of such high payments and reiterated his commitment to ensuring that profits are based on genuine performance and not fabricated data. Moreover, Prabowo expressed his displeasure at the excessive number of commissioners in some loss-making SOEs, stating that he has instructed the Danantara Investment Authority to streamline the management structures within these companies.
The president emphasized the importance of prudent financial management and efficient use of public funds. He stressed the need for high-quality spending practices that deliver tangible benefits to the public, promote economic growth, and enhance the quality of public services. Prabowo urged for a more responsible approach to government spending, calling for a reduction in wasteful operational expenditures and a focus on initiatives that create jobs and improve overall economic conditions.
