Prabowo Criticizes Scrapping of SOE Bonuses: Is It a Strategic Move?

President Prabowo Subianto recently announced his decision to abolish the tantiem bonus scheme for commissioners and directors of state-owned enterprises (SOEs) that are operating at a loss. He expressed his concerns over the absurd practices related to tantiem, which are profit-sharing bonuses given to SOE executives. During the presentation of the 2026 State Budget Bill at the Parliament Complex, Prabowo criticized the excessive tantiem payments received by some commissioners who attended meetings only once a month. He emphasized the need for real profits and transparency in financial reporting, stating that directors should not receive tantiem if the company is not making a profit. Additionally, Prabowo addressed the issue of excessive commissioners in loss-making SOEs and announced a plan to reduce the number of commissioners to ensure more efficient management. He underscored the importance of responsible spending of public funds and the need to prioritize tangible benefits for the people. Prabowo’s actions aim to improve the quality of state spending, increase efficiency, and enhance public services while cutting down on wasteful operational expenses.

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