President Prabowo Subianto has made significant changes in the bonus scheme and management structure of state-owned enterprises (SOEs) to ensure better financial accountability. He criticized the practices of profit-sharing bonuses, known as tantiem, awarded to SOE executives, citing absurdities in the system. During his presentation of the 2026 State Budget Bill, Prabowo emphasized the elimination of tantiem, stating that it was a deceptive foreign term used to conceal the true nature of the bonuses.
Prabowo uncovered instances where SOE commissioners received exorbitant tantiem payments despite minimal involvement in company affairs, leading to substantial losses. He highlighted the need for real profits and transparency in financial reporting, urging directors not to receive bonuses if the company is operating at a loss. Prabowo also took action to reduce the number of commissioners in loss-making SOEs, indicating that excessive oversight was inefficient and unnecessary.
The president reiterated the importance of prudent public spending, emphasizing the need for high-quality investments that benefit the public. He called for strict financial discipline, efficiency, and the elimination of wasteful operational expenses to maximize the impact of government spending. Prabowo’s reforms aim to ensure that every rupiah of public funds is utilized effectively to stimulate economic growth, create employment opportunities, and enhance public services.
