JAKARTA, Legal Literacy — President of the Republic of Indonesia Prabowo Subianto reminded the leaders of State-Owned Enterprises (State-Owned Enterprises) to carry out their duties honestly and place the interests of the community as the main orientation. He assessed that SOE officials who are unable to hold the mandate should relinquish their positions.
This statement was made by Prabowo during the inauguration of Pertamina's Integrated Energy Infrastructure in the Refinery Development Master Plan (RDMP) project in Balikpapan, East Kalimantan, on Monday, January 12, 2026.
In his direction, Prabowo also highlighted the practice of giving tantiem/incentives to state-owned companies that are still posting poor performance. According to him, SOE management must reflect responsibility for the management of state assets, not be oriented towards personal gain.
In addition, Prabowo touched on the issue of integrity and governance in some SOEs which are considered not strong enough. He linked this to the suboptimal quality of leadership and asked for a thorough overhaul so that SOEs are healthier, more accountable and professional.
Prabowo stated that he had assigned the Head of Danantara along with a number of ministers to take "cleaning" and evaluation steps against problematic SOEs, including those that continue to lose money.
In the future, he emphasized that SOE management must be held by competent and responsible figures so that state resources and assets can be managed for development purposes and public interest.
From a governance perspective, the President's statement reaffirms the importance of the principles of Good Corporate Governance (GCG) in SOEs—starting from accountability, transparency, to the responsibility of the company's organs. The evaluation of the performance and remuneration of directors should ideally be in line with the company's achievements and the public interest as the ultimate beneficiary.
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