President Prabowo Subianto has announced the removal of the profit-sharing bonus system, known as tantiem, for commissioners and directors of state-owned enterprises (SOEs) that are operating at a loss. He has also decided to reduce the number of commissioners in these companies. Prabowo criticized the absurd practices related to tantiem bonuses, calling it a deceptive tactic with the use of foreign terminology to conceal its true meaning. During the presentation of the 2026 State Budget Bill, Prabowo expressed his disbelief at the fact that some SOE commissioners received tantiem payments of up to Rp 40 billion per year despite minimal participation in meetings. He emphasized the need for genuine profits and transparency, instructing that directors should not receive bonuses if the company is not profitable. Prabowo emphasized the importance of prudent use of public funds, stressing the need for efficient spending and tangible outcomes. He highlighted the restructuring of SOEs, aiming to enhance management efficiency by reducing the number of commissioners and promoting responsible financial management practices. The president emphasized that government spending should result in job creation, increased purchasing power, and improved public services.
