President Prabowo Subianto recently announced his decision to remove the bonus scheme, known as tantiem, for commissioners and directors of loss-making state-owned enterprises (SOEs). During his presentation of the 2026 State Budget Bill, Prabowo highlighted the absurd practices surrounding tantiem bonuses awarded to SOE executives. He expressed his disbelief at the exorbitant tantiem payments received by some commissioners who attended meetings only once a month, questioning how someone could receive up to Rp 40 billion yearly for such minimal involvement. Prabowo emphasized his commitment to real profits and transparency, stating that bonuses should only be awarded for actual results, not inflated numbers.
In addition to eliminating tantiem, President Prabowo also addressed the issue of excessive commissioners in some loss-making SOEs. He assigned the Danantara Investment Authority to reform these companies, emphasizing the need for efficient management and cost-cutting measures. Prabowo reduced the number of commissioners by half, aiming for a maximum of six individuals but ideally fewer. He underlined the importance of safeguarding public funds and ensuring that state spending delivers tangible benefits and improvements in public services.
Prabowo concluded his remarks by calling for responsible and efficient government spending that contributes to job creation, increased purchasing power, and overall economic growth. He urged for a focus on quality spending and the elimination of wasteful operational expenditures. Prabowo’s actions reflect his dedication to financial accountability and his commitment to strengthening Indonesia’s economy.
