President Prabowo Subianto recently announced important changes in the compensation structure for commissioners and directors of state-owned enterprises. He emphasized the elimination of the profit-sharing bonus scheme, known as tantiem, for executives of SOEs, especially those that are facing losses.
During a budget presentation at the Parliament Complex, Prabowo criticized the absurdity of some practices within SOEs, pointing out instances where commissioners received hefty tantiem payments despite minimal involvement in company affairs. He highlighted the need for transparency and real profits, vowing to prevent any manipulation of financial figures.
Furthermore, Prabowo expressed his concerns about the excessive number of commissioners in some loss-making SOEs, stressing the importance of efficiency and prudent financial management. He instructed the Danantara Investment Authority to streamline operations and reduce the number of commissioners by half, aiming for a more effective governance structure.
In his address, the president underscored the importance of responsible spending of public funds, emphasizing the need for tangible benefits, job creation, and improved public services. He called for a conscious effort to enhance the quality of state expenditures and eliminate wasteful operational costs to maximize the impact of government spending.
Overall, Prabowo’s decisions reflect a commitment to fiscal discipline and accountability in managing SOEs, ensuring that every rupiah spent delivers value and serves the best interests of the people.
