President Prabowo Subianto has recently announced the decision to eliminate the profit-sharing bonus system, known as tantiem, for commissioners and directors of state-owned enterprises (SOEs) that are operating at a loss. He emphasized that this move was necessary due to the misuse and abuse of the tantiem system by some SOE executives, who were receiving exorbitant bonuses despite the company’s financial performance. In his presentation of the 2026 State Budget Bill, Prabowo expressed his disbelief at the extravagant tantiem payments made to commissioners who only attended meetings once a month. He also highlighted the need to ensure that profits reported by SOEs are genuine and not manipulated to deceive stakeholders. Prabowo further emphasized the importance of prudent financial management and efficient use of public funds to deliver concrete benefits to the people. Additionally, he mentioned the excessive number of commissioners in some loss-making SOEs and announced plans to streamline their governance structure by reducing the number of commissioners to improve operational efficiency. Prabowo’s commitment to enhancing the quality of state spending and fostering economic growth through responsible financial management was well-received by the audience.
Prabowo Criticizes Scrapping of SOE Bonuses: Is It Just a Ploy?
