JAKARTA, Legal Literacy— Indonesian President Prabowo Subianto reminded the ranks of leaders of State-Owned Enterprises (BUMN) to carry out their duties honestly and place the interests of the community as the main orientation. He assessed that BUMN officials who are unable to hold the mandate should release their positions.

The 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 red plate companies that are still posting poor performance. According to him, BUMN management must reflect responsibility for the management of state assets, not be oriented towards personal gain.

In addition, Prabowo alluded to the issue of integrity and governance in some BUMNs which are considered not strong enough. He associated it with the quality of leadership that has not been optimal and asked for a thorough improvement so that BUMNs are healthier, more accountable and professional.

Prabowo stated that he had assigned the Head of Danantara along with a number of ministers to take steps to "clean up" and evaluate problematic BUMNs, including those that continue to suffer losses.

In the future, he emphasized that the management of BUMNs must be held by competent and responsible figures so that state resources and assets can be managed for development purposes and public interests.

From a governance perspective, the President's statement reaffirms the importance of the principles of Good Corporate Governance (GCG) in BUMN—ranging from accountability, transparency, to the responsibility of the company's organs. Performance evaluation and director remuneration should ideally be in line with company achievements and the public interest as the ultimate beneficiary.