President Prabowo Subianto has made a firm decision to eliminate the profit-sharing bonus scheme, known as tantiem, for commissioners and directors of state-owned enterprises (SOEs) that are facing losses. He expressed his disdain for the unethical practices surrounding tantiem, stating that the term was purposely chosen to obscure its true meaning. During the presentation of the 2026 State Budget Bill, Prabowo disclosed instances where SOE commissioners received exorbitant tantiem payments despite minimal contribution, prompting him to take action.
The president emphasized his commitment to safeguarding public funds and promoting responsible spending, declaring that every rupiah should translate into tangible benefits for the people. He highlighted the need for efficiency in state expenditure, asserting that wasteful operational costs must be minimized. Prabowo also addressed the issue of excessive commissioners in loss-making SOEs, directing the Danantara Investment Authority to streamline management by reducing the number of commissioners and ensuring a more reasonable structure.
By implementing these reforms, Prabowo aims to enhance the performance and accountability of SOEs, driving them towards sustainable profitability and impactful public service delivery. He reaffirmed his stance on prudent financial management, urging all stakeholders to prioritize the public interest and economic growth over self-serving practices. Through these measures, President Prabowo seeks to instill transparency, integrity, and efficiency in the governance of SOEs for the benefit of the Indonesian people.
