Prabowo Criticizes Scraping of SOE Bonuses: A Strategic Move?

President Prabowo Subianto recently announced his decision to eliminate the bonus scheme, called tantiem, for commissioners and directors of state-owned enterprises (SOEs) that are operating at a loss. He expressed his disbelief over the absurd practices surrounding tantiem, a profit-sharing bonus given to SOE executives. During the presentation of the 2026 State Budget Bill, Prabowo criticized the exorbitant tantiem payments received by some commissioners who barely attended meetings, citing amounts of up to Rp 40 billion annually. He emphasized the need for transparency and integrity in profit calculations, asserting that bonuses should only be given for genuine profits, not manipulated figures. Prabowo also instructed Indonesia’s sovereign investment authority, Danantara, to ensure directors of loss-making companies do not receive tantiem. Additionally, he addressed the issue of excessive commissioners in some SOEs, leading to his decision to reduce the number of commissioners by half and limit it to a maximum of six individuals. The move aims to streamline operations and improve financial oversight within SOEs. Prabowo underscored the importance of responsible public spending, urging for efficient utilization of funds to benefit the people, create jobs, boost purchasing power, and enhance public services.

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