September 29, 2025 | 07:06 pm
TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto expressed frustration over the management of state-owned enterprises (BUMN), criticizing directors and commissioners who grant themselves bonuses even when their companies are suffering losses.
“Sometimes they act recklessly. Entrusted with state assets, they treat them like family businesses. When the company is losing money, they still give themselves bonuses,” Prabowo said in his closing speech at the Prosperous Justice Party’s (PKS) sixth National Deliberation at Hotel Sultan, Jakarta, on Monday, September 29, 2025.
The president has tasked the Investment Management Agency (BPI) Daya Anagata Nusantara (Danatara) with cleaning up underperforming BUMN management. He also signaled plans to involve law enforcement in addressing misconduct.
“I want to send them to the Attorney General’s Office and the Corruption Eradication Commission (KPK) to be pursued,” he stressed.
Three-Year Grace Period
Prabowo said BUMN must show tangible results within the next two to three years. Ideally, he added, state firms should be able to generate profits equivalent to 10 percent of their total assets.
“For example, from US$1,000 billion in assets, they should deliver US$100 billion annually,” he said.
Currently, however, many BUMN produce only 3 to 5 percent yields. To address this, Prabowo is granting a three-year grace period before evaluating their performance. “We are targeting them within three years and will wait for the results,” he said.
Criticism of Tantiem
This is not the first time Prabowo has criticized the practice of distributing tantiem—profit-sharing bonuses for BUMN directors, commissioners, or employees. At the opening of the 2025 APKASI Otonomi Expo in Banten last August, he openly questioned the logic of rewarding executives when companies underperform.
Tantiem, a Dutch-derived term, refers to profit allocations approved at shareholders’ meetings. Prabowo argued the practice is outdated and unjustifiable, particularly when firms record losses.
“Why not just call it a bonus? When the company loses money, commissioners still receive bonuses. That may be fine for you, but not for the people. Cross them off! Many young people are ready to take over,” he said.
Prabowo has since ordered the abolition of tantiem for BUMN directors and commissioners, insisting it undermines accountability.
Bloated Payments
The president also cited examples of what he sees as irrational management. During his state address on the 2026 State Budget Bill at the parliament complex on August 15, 2025, he revealed that one commissioner received Rp40 billion annually in tantiem despite only attending monthly meetings.
“There was a commissioner who showed up once a month and still earned Rp40 billion in tantiem each year,” Prabowo said, calling the practice wasteful and unjustifiable.
Eka Yudha Saputra contributed to the writing of this article.
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