President Prabowo Subianto recently announced the elimination of the bonus scheme, known as tantiem, for commissioners and directors of state-owned enterprises (SOEs) that are experiencing losses. He explained that he found the practices surrounding tantiem to be absurd, describing it as a profit-sharing bonus given to SOE executives to inflate their earnings. During his presentation of the 2026 State Budget Bill, Prabowo expressed his disbelief at the exorbitant tantiem payments received by some commissioners who only attended meetings once a month, emphasizing that directors should not receive bonuses if the company is not making real profits. He also highlighted the need to reduce the number of commissioners in loss-making SOEs, noting that excessive commissioner appointments were unreasonable and inefficient. Prabowo stressed the importance of prudent spending of public funds, urging for high-quality expenditure that delivers tangible benefits, creates jobs, boosts purchasing power, and enhances public services. He emphasized the government’s commitment to safeguarding public funds and eliminating wasteful operational spending, signaling a shift towards greater efficiency and accountability in state spending.
Prabowo Criticizes Removal of SOE Bonuses as Political Maneuver
