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View all search resultsDanantara unveils sweeping reforms for SOE executive bonuses, incentives
State asset fund Danantara has announced a major overhaul of bonus and compensation rules for SOE directors and commissioners, aligning rewards with global standards.
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The name Danantara Indonesia is pictured on Feb. 28 in front of the state asset fund's headquarters in Jakarta. (Reuters/Willy Kurniawan)
S
tate asset fund Danantara has announced a major overhaul of bonus and compensation rules for SOE directors and commissioners, aligning rewards with global standards of corporate governance.
Under the new rules, directors’ incentives will be strictly tied to measurable operational outcomes and financial performance, based on audited statements that reflect actual business conditions.
Meanwhile, commissioners will no longer be eligible for performance-based bonuses, in line with international best practices that advocate for fixed compensation to ensure their independent oversight role.
“This restructuring represents a comprehensive overhaul of the government's incentive system,” Danantara CEO Rosan Roeslani said in a statement issued on Friday.
“We want to ensure that every reward, especially for the board of commissioners, is aligned with its contribution and actual impact on the governance of the SOE concerned.”
The policy draws from global benchmarks, including the OECD Guidelines on Corporate Governance of State-Owned Enterprises, which advocate for fixed remuneration for supervisory roles to ensure impartiality and accountability.
The reform is seen as a bold move to reset the governance culture within Indonesia’s SOEs and signals a broader shift in public sector compensation strategies.
