President Prabowo Subianto recently made a bold move to eliminate profit-sharing bonuses, known as tantiem, for commissioners and directors of state-owned enterprises (SOEs) that are operating at a loss. During his presentation of the 2026 State Budget Bill, Prabowo denounced the practice of awarding lucrative bonuses to executives in SOEs that are struggling financially, citing examples of outrageous payments of up to Rp 40 billion per year to commissioners who attended meetings only once a month. He emphasized the need for real profits and transparency in financial reporting, warning that any resistance to these changes would result in immediate resignation.
Prabowo also addressed the issue of excessive numbers of commissioners in loss-making SOEs, stating that he had instructed the Danantara Investment Authority to streamline the management of these companies. By reducing the number of commissioners by half and setting a maximum limit of six individuals, Prabowo aims to ensure greater efficiency and accountability in the use of public funds. His overarching goal is to promote high-quality spending, create jobs, boost purchasing power, and enhance public services while eliminating wasteful operational expenses.
In conclusion, Prabowo stressed the importance of safeguarding public funds and maximizing their impact on society. By implementing these measures, he seeks to improve the financial health and governance of SOEs, ultimately benefiting the Indonesian people.
