President Prabowo Subianto recently announced the elimination of bonuses for commissioners and directors of state-owned enterprises (SOEs) in Indonesia. He criticized the profit-sharing scheme, known as tantiem, calling it an absurd practice. During the presentation of the 2026 State Budget Bill, Prabowo highlighted instances where commissioners received up to Rp 40 billion per year in tantiem despite only attending monthly meetings. He emphasized that bonuses should only be given if companies show real profits and not manipulated numbers.
Furthermore, Prabowo expressed concern over the excessive number of commissioners in some loss-making SOEs. He stated that he has instructed the Danantara Investment Authority to reform these companies by reducing the number of commissioners by half, with the ideal number being four to five. Prabowo stressed the importance of responsible spending of public funds and the need to improve the efficiency of state expenditure.
He emphasized that government spending should focus on generating benefits for the public, creating jobs, boosting purchasing power, and enhancing the quality of public services. Prabowo’s decision to overhaul the bonus system and streamline the management of SOEs reflects his commitment to ensuring transparency and accountability in public spending.
