JAKARTA – President Prabowo Subianto has emphasized the abolition of tantiem (profit-sharing bonuses) for commissioners and directors of State-Owned Enterprises (SOEs) as part of reforms in the management of state companies. He conveyed this statement during the presentation of the 2026 State Budget Bill in Jakarta.
“Previously, the management was illogical from an economic perspective. The company was losing money yet had too many commissioners. I cut the number of commissioners in half—at most six, ideally just four or five. And I abolished the tantiem,” said Prabowo.
President Prabowo explained that SOEs with assets of more than USD 1,000 trillion should be able to contribute at least USD 50 billion to the state. According to him, such contributions could cover the state budget deficit.
“Therefore, I have tasked the Indonesia Investment Management Authority (Danantara) to fix our SOEs,” he said.
Furthermore, President Prabowo stated that foreign terms such as tantiem were deliberately used by certain parties to obscure transparency, but he stressed that the practice provides no real benefit to the national economy.
“I myself don’t even understand what tantiem means. It’s just their trick. They deliberately choose a foreign term so that we don’t understand what it is,” he remarked.
He also criticized the practice of SOE commissioners receiving tantiem worth tens of billions of rupiah annually, despite only attending monthly meetings.
“I have also instructed Danantara that directors should not receive tantiem if the company is at a loss. And if profits are made, they must be genuine profits—not manipulated,” Prabowo asserted.
Speaker of the House of Representatives (DPR) Puan Maharani welcomed President Prabowo’s move.
According to her, SOE profits previously allocated for tantiem would be better redirected to the state and used for public welfare.
“It would be best if the profits, as stated by the President, could be maximized for the welfare of the people,” said Puan.
Puan further argued that tantiem is inappropriate for SOE executives, particularly if the company does not generate significant profits. She stressed the importance of fair criteria so that SOE earnings are not monopolized by a select few.
Deputy Speaker of the House of Representatives Sufmi Dasco Ahmad also supported the policy. He said that abolishing tantiem would save SOEs a substantial amount of money.
“Indeed, the tantiem has been eliminated, and if I’m not mistaken, this saves around IDR 17–18 trillion from the existing tantiem,” said Dasco.
Dasco added that this policy aligns with the reduction in the number of SOE commissioners that was announced a month earlier. He stated that this reform will improve effectiveness while also strengthening SOEs’ contribution to national development.
