President Prabowo Subianto recently made a bold move by eliminating the bonus scheme, known as tantiem, for commissioners and directors of state-owned enterprises (SOEs) that are facing losses. During the presentation of the 2026 State Budget Bill, Prabowo expressed his disbelief at the absurd practices surrounding tantiem bonuses for SOE executives. He emphasized that the profit-sharing bonuses should only be given when the company is making real profits, not based on manipulated figures. Prabowo also highlighted the issue of excessive number of commissioners in some loss-making SOEs, leading to the decision to reduce the number of commissioners by half to ensure more reasonable management. Furthermore, Prabowo reiterated the importance of safeguarding public funds through high-quality spending, emphasizing the need for efficient use of resources to deliver tangible benefits to the public. This move aims to improve the quality of state spending, create job opportunities, strengthen purchasing power, and enhance public services.
