President Prabowo Subianto recently made a significant decision regarding the bonus scheme for commissioners and directors of state-owned enterprises (SOEs) by eliminating the tantiem system. In his presentation of the 2026 State Budget Bill, Prabowo highlighted what he found to be absurd practices surrounding tantiem, which are profit-sharing bonuses given to SOE executives. He expressed his disbelief at the exorbitant amounts received by some commissioners who attended meetings only once a month yet received up to Rp 40 billion in tantiem payments annually. Prabowo emphasized the need for transparency and accountability, stating that bonuses should only be given to directors of profitable companies based on genuine profits, not manipulated figures. He also addressed the issue of excessive commissioners in loss-making SOEs, leading to a reduction in the number of commissioners to ensure more efficient management. Prabowo’s ultimate goal is to safeguard public funds by promoting high-quality spending practices, emphasizing the importance of utilizing government spending to benefit the people, create jobs, boost purchasing power, and enhance public services.
Prabowo Criticizes SOE Bonuses Removal as Strategic Move
