President Prabowo Subianto recently made a significant move by eliminating the tantiem bonus scheme for commissioners and directors of loss-making state-owned enterprises (SOEs). He expressed his reasons for this decision during a presentation of the 2026 State Budget Bill, criticizing what he perceived as absurd practices surrounding tantiem payments. Prabowo highlighted instances where SOE commissioners received substantial tantiem payments despite minimal involvement in company affairs, citing amounts of up to Rp 40 billion per year for those who only attended monthly meetings.
Furthermore, Prabowo emphasized the importance of real profits and transparency in financial dealings, ensuring that executives do not receive tantiem if the company is operating at a loss. He also addressed the issue of excessive commissioners within some SOEs, leading to the reduction of commissioner numbers by half to promote efficiency and accountability. The president stressed the need for responsible and high-quality spending of public funds, emphasizing the importance of utilizing government spending to benefit the people, create jobs, enhance purchasing power, and improve public services. This strategic restructuring aims to enhance the overall performance and governance of SOEs in Indonesia.
