President Prabowo Subianto recently announced the elimination of the bonus scheme, known as tantiem, for commissioners and directors of state-owned enterprises (SOEs) operating at a loss. In addition to this, he also addressed the issue of reducing the number of commissioners in these companies due to some unreasonable practices he found in the field related to tantiem bonuses.
During his presentation of the 2026 State Budget Bill, Prabowo expressed his dismay at the absurdity of the tantiem system, describing it as a tactic to conceal the true nature of these bonuses from the public. He highlighted instances where SOE commissioners received massive tantiem payments of up to Rp 40 billion per year despite attending meetings only once a month, questioning the validity of such practices.
To address these issues, Prabowo emphasized the need for transparency and accountability in SOE management. He mandated that directors should not receive tantiem if the company is facing financial losses, and emphasized the importance of real profits instead of inflated figures. The president also mentioned the excessive number of commissioners in some loss-making SOEs, leading to his decision to reduce the number of commissioners by half and ensure more efficient management with a maximum of four to six commissioners per company.
Prabowo stressed the importance of safeguarding public funds through responsible spending practices. He called for improved quality in state spending, greater efficiency, and tangible benefits from every rupiah spent. Wasteful operational expenses must be minimized, and government spending should focus on generating benefits, creating jobs, boosting purchasing power, and enhancing public services.