President Prabowo Subianto recently made a bold move by eliminating the profit-sharing bonus scheme, or tantiem, for commissioners and directors of state-owned enterprises (SOEs) that are operating at a loss. He also announced a reduction in the number of commissioners in these companies. Prabowo criticized the absurd practices surrounding tantiem, stating that the use of a foreign term was merely a tactic to obscure the true nature of these bonuses. He expressed disbelief in the past practices where some SOE commissioners received up to Rp 40 billion per year in tantiem despite attending meetings only once a month. Prabowo emphasized the need for directors to receive bonuses only when companies are making actual profits, not through misleading figures. He called for transparency and accountability in managing public funds, urging for greater efficiency and tangible benefits from government spending. Additionally, Prabowo pointed out the excessive number of commissioners in certain loss-making SOEs, leading to his decision to reduce the maximum number of commissioners to promote better governance and financial discipline. Through these measures, Prabowo aims to ensure that every public fund is spent wisely and contributes to the nation’s development.
