President Prabowo Subianto recently announced his decision to put an end to the tantiem bonus scheme for commissioners and directors of state-owned enterprises (SOEs) that are operating at a loss. He highlighted the absurdity of certain practices surrounding tantiem, which are profit-sharing bonuses given to SOE executives. During a 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, sometimes receiving up to Rp 40 billion per year.
He emphasized the importance of real profits and transparency, stating that directors of loss-making companies should not receive tantiem. If the executives disagree with this decision, they are free to resign. Prabowo also addressed the issue of excessive commissioners in some SOEs, leading to a reduction in their numbers by half. He stressed the need to protect public funds and ensure high-quality spending practices, advocating for efficiency and tangible benefits from governmental expenditures.
Prabowo urged for responsible financial management, emphasizing the importance of government spending generating positive outcomes such as job creation, increased purchasing power, and improved public services. His commitment to eliminating wasteful operational expenses and promoting effective resource allocation reflects his goal to safeguard the interests of the Indonesian people.
