President Prabowo Subianto has recently made a bold move by eliminating the profit-sharing bonus system, known as tantiem, for commissioners and directors of state-owned enterprises (SOEs) experiencing financial losses. During the presentation of the 2026 State Budget Bill, President Prabowo expressed his disbelief in the absurd practices surrounding tantiem distribution to SOE executives, emphasizing the need for transparency and accountability in managing public funds.
Prabowo highlighted instances where commissioners received exorbitant tantiem payments despite minimal involvement in company affairs, citing examples of monthly meetings and annual bonuses amounting to Rp 40 billion. He denounced such practices as deceptive and insisted on real profits as the basis for any bonus payments. Additionally, Prabowo directed the Danantara Investment Authority to ensure that directors do not receive tantiem if their company is in a financial deficit, urging a commitment to honest financial reporting practices.
In his address, President Prabowo also addressed the issue of excessive commissioners in some loss-making SOEs, leading to inefficiencies and mismanagement. He mandated a reduction in the number of commissioners by half, setting a maximum limit of six members per board to streamline decision-making processes and improve governance standards. Prabowo emphasized the importance of prudent spending and the need to maximize the impact of public funds on societal development.
The president’s directives reflect a commitment to financial integrity and public welfare, calling for responsible stewardship of state resources to drive economic growth, job creation, and enhanced public services. By eliminating dubious bonus schemes and promoting fiscal discipline, President Prabowo aims to build a more accountable and efficient state-owned enterprise sector that serves the interests of the Indonesian people.
