Jakarta. President Prabowo Subianto said Thursday that no one, including himself, was irreplaceable as the Indonesian leader warned underachieving bosses at the country’s state-run enterprises.

Prabowo was speaking at a forum of sub-national government leaders in Tangerang, away from the massive labor rally centered in front of Jakarta’s parliamentary complex. 

In a speech that lasted over half an hour, Prabowo told the crowd that the top brass of some state-owned companies had been enjoying lavish bonuses despite their businesses being in the red.  They even called the bonuses as “tantiem” -- a term that Prabowo revealed to have originated from the Dutch language, possibly to cause confusion among the people. This prompted the retired army general to get rid of these unfair bonuses in a major overhaul of government-owned firms.

“Loss-making companies even give their commissioners bonuses. Isn’t that nice? No! Those who don’t want to have [the ‘tantiem’ bonuses removed], get out. There are many young people out there who want to work there,” Prabowo told the forum.

“In Indonesia, no one is irreplaceable, including the president. If I’m not doing my job properly or being a jerk, I can be replaced. … And I know that there are some directors who think they are kings, acting as if the state companies belong to their grandmothers,” he said.

According to Prabowo, Indonesia actually boasts massive wealth, but unfortunately struggles with mismanagement. Exhibit A: the well-paid-but-non-performing-bosses. In Prabowo’s estimates, the six-month-old Indonesian sovereign fund Danantara already boasts $1 trillion in assets. Danantara is responsible for overseeing the assets of around 844 Indonesian state-run enterprises, including their sub-subsidiaries. He also claimed Danantara as the “world’s fifth-largest sovereign wealth fund”, behind its Norwegian, Chinese, and Abu Dhabi counterparts.

Danantara’s chief executive officer, Rosan Roeslan,i recently said that the agency had already gotten rid of the bonuses and other incentives for the state companies’ board of commissioners. Directors may only receive bonuses based on operational performance that is reflected on financial reports that accurately reflect sustainable operations. Rosan estimated that the latest policy could save Rp 8 trillion ($489.5 million) each year.

The size of the commissioners' board at state enterprises varies, with the state-run electricity firm PLN having 10 individuals. The government recently caught flak for having at least 30 deputy ministers being commissioners in state-owned enterprises. This includes Deputy Finance Minister Suahasil Nazara at PLN. Fertilizer producer Pupuk Indonesia also has Deputy Agricultural Minister Sudaryono as one of its commissioners.

Add as a preferred source on Google +