Prabowo Takes Firm Stance Against Loss-Making SOEs Demanding Bonuses

Strong Criticism of Current Practices

Indonesian President Prabowo Subianto has launched a scathing attack on state-owned enterprises (SOEs) that continue to demand bonuses despite operating at a loss. During a virtual ceremony for the inauguration of RDMP Balikpapan, Prabowo described this practice as 'ndableg' (stubbornly disobedient) and 'not knowing shame', emphasizing the need for immediate reform ¹

Directive to Danantara

Prabowo has given a clear directive to Badan Pengelola Investasi Daya Anagata Nusantara (BPI Danantara), led by Rosan P Roeslani, to comprehensively clean up SOE management. The task includes eliminating bonus payments for enterprises that are operating in the red. This move is part of a broader effort to address the numerous issues plaguing Indonesia's SOE sector ²

Implications for SOE Executives

The President went further by stating that any SOE directors or commissioners who disagree with the elimination of bonuses should voluntarily step down. Prabowo expressed confidence that there are many competent individuals ready to take their place, suggesting that current executives who oppose the reforms are not essential to their organizations ¹

Rationale Behind the Decision

Prabowo's decision is driven by the significant number of SOEs operating at a loss while still distributing bonuses. He views this practice as not only financially unsustainable but also morally questionable. The President's strong stance reflects a broader commitment to improving the efficiency and accountability of state-owned enterprises in Indonesia.