President Prabowo Subianto has recently announced his decision to abolish the bonus scheme, called tantiem, for commissioners and directors of state-owned enterprises (SOEs) that are facing financial losses. He expressed his disapproval of the practice of awarding profit-sharing bonuses to SOE executives, referring to it as an absurdity in the field.
During his presentation of the 2026 State Budget Bill at the Parliament Complex in Senayan, Prabowo emphasized his stance on eliminating tantiem payments. He highlighted instances where SOE commissioners received exorbitant tantiem payments despite minimal involvement in company affairs, with some receiving up to Rp 40 billion per year for attending meetings only once a month.
Prabowo also addressed the issue of excessive numbers of commissioners in some loss-making SOEs, stating that he has instructed the Danantara Investment Authority to reform the management of these companies. He stressed the importance of safeguarding public funds and ensuring high-quality spending to benefit the people.
In addition, Prabowo underscored the need for government spending to yield tangible results, create job opportunities, boost purchasing power, and enhance public services. He urged for greater efficiency in state spending and the reduction of wasteful operational expenses.
The president’s decision to scrap tantiem for SOE executives reflects his commitment to improving the financial management and governance of these companies for the betterment of the Indonesian economy.
