President Prabowo Subianto has recently made a significant decision to remove the profit-sharing bonus scheme, known as tantiem, for commissioners and directors of state-owned enterprises (SOEs) that are experiencing financial losses. He emphasized the need for transparency and accountability in the management of public funds, highlighting the absurd practices observed in awarding excessive bonuses to executives of these SOEs. During the presentation of the 2026 State Budget Bill, Prabowo expressed his firm stance on eliminating tantiem and ensuring that profits are based on genuine financial performance, not manipulated figures. He criticized the previous practice of commissioners receiving large bonuses despite minimal involvement in company activities, stressing the importance of efficient spending and prudent management of resources. Prabowo also addressed the issue of excessive numbers of commissioners in loss-making SOEs and announced a reduction in the maximum number of commissioners to promote better governance and oversight. His actions aim to instill accountability, promote financial integrity, and enhance the effectiveness of state spending to benefit the public and improve public services.
Prabowo Criticizes Scrapping of SOE Directors’ Bonuses
