President Prabowo Subianto recently made a significant decision to eliminate the bonus scheme, known as tantiem, for commissioners and directors of state-owned enterprises (SOEs) that are facing financial losses. In a presentation of the 2026 State Budget Bill, Prabowo expressed his disbelief in the practices surrounding tantiem, referring to it as a deceptive ploy with foreign terminology to confuse the public. He highlighted instances where SOE commissioners received substantial tantiem payments despite minimal involvement in company affairs, emphasizing the need for transparency and accountability in profit-sharing practices.
Prabowo’s directive also included a reduction in the number of commissioners in loss-making SOEs, aiming to streamline governance and enhance efficiency within these organizations. He stressed the importance of prudent financial management and the responsible use of public funds, emphasizing the need for tangible benefits from government spending. By targeting wasteful expenditure and promoting effective resource allocation, Prabowo aims to strengthen the economy, create job opportunities, and improve public services for the benefit of all Indonesians.
The president’s actions have generated positive reactions from the public, signaling a commitment to reforming SOEs and ensuring that financial resources are utilized effectively for the nation’s development. Prabowo’s bold stance on eliminating tantiem bonuses and optimizing organizational structures reflects his determination to uphold transparency and integrity in Indonesia’s corporate governance.
