President Prabowo Subianto has recently made a bold decision to eliminate the bonus scheme, known as tantiem, for commissioners and directors of loss-making state-owned enterprises (SOEs). During his presentation of the 2026 State Budget Bill, Prabowo expressed his concerns over the absurd practices surrounding tantiem bonuses awarded to SOE executives. He emphasized the need for transparency and accountability in the management of public funds, stating that every rupiah must be safeguarded through high-quality spending.
Prabowo highlighted instances where SOE commissioners received hefty tantiem payments despite minimal contributions, such as attending meetings only once a month. He emphasized the importance of real profits, not manipulated figures, and urged directors to be held accountable for the financial performance of their companies. In an effort to streamline the management of loss-making SOEs, Prabowo announced a reduction in the number of commissioners, ensuring a more efficient and effective governance structure.
Furthermore, Prabowo emphasized the need for government spending to deliver tangible benefits to the people, including job creation, increased purchasing power, and improved public services. He called for greater efficiency in state spending and a crackdown on wasteful operational expenses. Prabowo’s decisive actions reflect his commitment to driving positive change in SOE management and promoting responsible financial practices for the benefit of all Indonesians.
