President Prabowo Subianto has recently taken action to address the issue of bonus schemes, specifically the profit-sharing bonuses known as tantiem, for commissioners and directors of state-owned enterprises (SOEs) that are running at a loss. During the presentation of the 2026 State Budget Bill, Prabowo expressed his disbelief at the practices surrounding tantiem payments, referring to them as absurd. He emphasized the need for transparency and accountability, stating that directors of SOEs should not receive tantiem if the company is facing financial losses.
Prabowo further highlighted the need for restructuring in loss-making SOEs, pointing out that some companies had an excessive number of commissioners. To address this issue, he ordered a reduction in the number of commissioners by half, with the goal of having only four to five commissioners in each company. Prabowo stressed the importance of responsible spending of public funds, stating that wasteful operational spending must be minimized to ensure that every rupiah spent delivers tangible benefits to the public.
In his efforts to enhance the efficiency and effectiveness of state spending, Prabowo emphasized the need for government expenditures to result in job creation, increased purchasing power, and improved public services. By implementing these measures, Prabowo aims to uphold the integrity of public funds and promote sound financial management practices within state-owned enterprises.
Overall, Prabowo’s decision to eliminate tantiem and reduce the number of commissioners in loss-making SOEs reflects his commitment to improving governance, transparency, and accountability in the management of public resources.
