Danantara Bars State-Owned Firms’ Commissioners from Receiving Bonuses in Push for Global Governance Standards
Main Takeaways
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JAKARTA, Investortrust.id — Indonesia’s sovereign investment authority, Badan Pengelola Investasi Daya Anagata Nusantara (BPI Danantara), has officially banned state-owned enterprise (SOE) commissioners and their subsidiaries from receiving bonuses or any performance-linked incentives, in a sweeping move to strengthen public accountability and corporate governance.
The policy, outlined in Circular Letter No. S-063/DI-BP/VII/2025 signed by CEO Rosan Perkasa Roeslani on Tuesday, July 30, mandates that SOE commissioners shall no longer be entitled to tantiem—performance-based bonuses—or similar compensation schemes. The directive applies to all SOEs and subsidiaries within Danantara’s investment portfolio beginning fiscal year 2025.
According to the circular, “Members of the Board of Commissioners of SOEs and their subsidiaries shall not receive tantiem, performance incentives (in any form), or other forms of compensation tied to company performance.” Danantara emphasized that the ban reflects its commitment to adopt global best practices in state enterprise governance.
While directors remain eligible for incentives, Danantara has imposed strict criteria. Executive bonuses must be grounded in “sustainable operational performance,” based on audited financial statements that genuinely reflect the company’s condition—free from accounting manipulations such as premature revenue recognition or inflated profits resulting from unrecorded expenses.
Danantara also requires companies to exclude non-recurring gains—such as asset revaluation, asset sales, and quasi-reorganizations—from performance calculations used to determine bonuses. “We want executive pay to reflect real performance, not windfalls,” Rosan said.
This reform aligns with international guidelines, notably the OECD’s Corporate Governance of State-Owned Enterprises, which recommends fixed compensation for commissioners to preserve their independence and oversight role. “This is not a cut in honorarium,” Rosan clarified, “but a realignment of the remuneration structure to reflect merit, fairness, and accountability.”
A Structural Overhaul for Public Accountability
Rosan, who also serves as Minister of Investment and Head of the Investment Coordinating Board (BKPM), described the decision as part of a broader agenda to reform Indonesia’s SOEs under Danantara’s dual role as operational and investment holding.
“The restructuring marks a fundamental shift in how the state rewards performance. Commissioners will still receive competitive monthly salaries commensurate with their responsibilities, but without profit-based bonuses,” he said in a statement received on Friday.
Rosan added that Danantara's reforms are grounded in the updated Law No. 1 of 2025, which amends the original SOE Law (Law No. 19 of 2003), granting Danantara full authority over investment, dividends, and operational strategy for SOEs.
The agency previously ordered the postponement of general shareholder meetings (RUPS) at non-public SOEs and subsidiaries to ensure tighter performance monitoring and unified governance.
Danantara and the Role of the SOE Ministry
Minister of State-Owned Enterprises Erick Thohir reassured lawmakers that the reform does not diminish the Ministry’s strategic role. “Danantara handles investment and operational management, while we act as supervisor and regulator,” Erick told Commission VI of the House of Representatives.
He praised the professionalism of Danantara’s team, saying they are instrumental in drawing foreign investment into Indonesia’s state-owned sectors. Danantara recently announced nearly $7 billion in international investment commitments across strategic industries.
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