The Presidential Palace has confirmed that the government's decision to eliminate tantiem (bonus) payments for commissioners of state-owned enterprises (SOEs) is not a punitive measure but rather a structural reform to strengthen the governance and integrity of Indonesia’s SOEs.

Minister of State Secretary Prasetyo Hadi said on Tuesday, August 5, 2025, that the policy aligns with President Prabowo Subianto’s broader commitment to revamp SOEs, which are considered the backbone of the national economy.

“Our main goal is to fundamentally reform the state-owned enterprises. That starts with improving personnel, management, and financial systems,” Prasetyo told reporters at the Presidential Palace complex.

Tantiem, profit-based bonuses typically granted to SOE executives and commissioners, have recently come under public scrutiny, especially when company performance failed to justify such incentives.

Prasetyo stressed that commissioner roles in SOEs should be seen as professional responsibilities, not opportunities for personal gain.

“Those assigned to SOEs, especially commissioners, are expected to help fix the system not to anticipate tantiem,” he said.

Prasetyo cited the decision to cut off such financial incentives reaffirms the principle that SOE roles are mandates of service, not rewards.

The move is part of an ongoing effort by the government to promote transparency, efficiency, and accountability in SOE management. Prasetyo noted that public trust in SOEs is essential and can only be maintained if their leadership is driven by integrity rather than compensation.

“This is the spirit we must emphasize to truly fix SOEs,” he said, adding that the reform efforts are consistent with national interests, not individual enrichment.

Formal ban

The announcement follows a policy directive issued by the State Investment Management Agency (BPI Danantara), which formally banned all SOE and SOE subsidiary commissioners from receiving tantiem or other performance-related bonuses.

The reform marks a significant shift in how SOE leadership is compensated and monitored, and signals a growing emphasis on performance accountability over entitlement.

The directive, signed by Danantara Executive Chairman Rosan P. Roeslani on July 30, 2025 (Letter No. S-063/DI-BP/VII/2025), cited the need to uphold international standards of corporate governance.

“To maintain the interests of SOEs and all stakeholders, commissioners at SOEs and their subsidiaries are not permitted to receive tantiem, performance incentives, or other forms of compensation linked to company performance,” the letter stated.