Prabowo Denies Scrapping SOE Bonuses: Claims It’s Just a Ploy!

President Prabowo Subianto recently announced the removal of the profit-sharing bonus scheme, or tantiem, for commissioners and directors of state-owned enterprises (SOEs) that are operating at a loss. He expressed his concerns about the questionable practices related to tantiem in SOEs. During the presentation of the 2026 State Budget Bill, Prabowo highlighted the misuse of tantiem, emphasizing that some commissioners received exorbitant bonuses despite minimal involvement in company affairs. In response, he has instructed Danantara, Indonesia’s sovereign investment authority, to ensure that such bonuses are only given when the company is truly profitable and based on transparent financial results. Additionally, Prabowo addressed the issue of excessive commissioners in loss-making SOEs and has mandated a reduction in their numbers to ensure more efficient management. He stressed the importance of responsible spending of public funds and emphasized the need for state expenditures to benefit the public, stimulate the economy, and enhance public services. Prabowo’s actions reflect his commitment to improving the governance and financial accountability of SOEs for the benefit of the Indonesian people.

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