Prabowo Criticizes Scrapping of SOE Bonuses as Political Maneuver

President Prabowo Subianto recently made a significant decision to eliminate the tantiem bonus scheme for commissioners and directors of state-owned enterprises (SOEs) that are experiencing losses. This move was driven by his discovery of questionable practices surrounding tantiem, which are profit-sharing bonuses given to SOE executives. During his presentation of the 2026 State Budget Bill, Prabowo expressed his disbelief at the exorbitant amounts some commissioners received in tantiem payments despite minimal involvement in the company’s operations. He emphasized the need for transparency and real profitability in SOEs, urging directors to prioritize genuine profits over manipulated figures. Additionally, Prabowo highlighted the excessive number of commissioners in some loss-making SOEs, leading to his decision to reduce the maximum number of commissioners by half. By implementing these changes, Prabowo aims to ensure the responsible use of public funds, emphasizing the importance of efficient spending that directly benefits the people. This initiative reflects his commitment to improving state spending, enhancing public services, and boosting Indonesia’s economy.

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