President Prabowo Subianto recently made a bold decision to eliminate the tantiem bonus scheme for commissioners and directors of loss-making state-owned enterprises (SOEs). During the presentation of the 2026 State Budget Bill, Prabowo expressed his reasons for this move, citing absurd practices related to profit-sharing bonuses for SOE executives. He emphasized the need for transparency and accountability in the allocation of public funds, particularly in ensuring that bonuses are based on real profits and not misleading figures.
Furthermore, Prabowo highlighted instances where SOE commissioners received substantial tantiem payments despite minimal involvement in company affairs. This led him to reduce the number of commissioners in these companies to promote efficiency and cost-effectiveness. By limiting the maximum number of commissioners to six, with the ideal range being four to five, Prabowo aims to streamline decision-making processes and enhance governance within SOEs.
The President emphasized the importance of prudent financial management and responsible spending of public funds. He called for continuous improvement in state spending practices to maximize the benefits for the Indonesian people. Prabowo’s decision to overhaul the bonus system and governance structure of SOEs reflects his commitment to fostering transparency, accountability, and efficiency in the management of public resources.
