President Prabowo Subianto recently announced his decision to eliminate the tantiem bonus scheme for commissioners and directors of state-owned enterprises (SOEs) who are experiencing losses, as well as reducing the number of commissioners in these companies. He highlighted the absurd practices surrounding tantiem bonuses which are profit-sharing incentives given to SOE executives.
During the presentation of the 2026 State Budget Bill at the Parliament Complex, President Prabowo expressed his disbelief at the extravagant tantiem payments made to some SOE commissioners who attended meetings only once a month, yet received up to Rp 40 billion annually. He emphasized the need for real profits and transparency in financial matters, stating that directors should not receive tantiem when the company is losing money.
In an effort to improve governance and operational efficiency within loss-making SOEs, President Prabowo instructed the Danantara Investment Authority to address the issue of excessive commissioners. He stressed the importance of safeguarding public funds and ensuring that government spending delivers tangible benefits, creates jobs, and enhances public services.
By implementing these changes, President Prabowo aims to promote responsible use of public resources and improve the overall performance of state-owned enterprises. Source link.
