Prabowo Criticizes Scrapping SOE Bonuses as Political Maneuver

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 financial losses. During the presentation of the 2026 State Budget Bill, Prabowo criticized the absurd practices surrounding tantiem, describing it as a ploy to deceive. He uncovered instances where SOE commissioners received huge tantiem payments despite minimal involvement in company affairs. Prabowo emphasized that directors would no longer be entitled to tantiem if the company is not profitable, and any profits must be legitimate. He also addressed the issue of excessive commissioners in some loss-making SOEs, declaring that the number of commissioners has been reduced to ensure more effective oversight. Prabowo underlined the importance of responsible and efficient use of public funds, emphasizing that government spending should benefit the people and improve public services. This significant policy shift aims to promote transparency and accountability in the management of state-owned enterprises.

Source link