Strategic Regulatory Solutions for Implementing the Business Judgment Rule in State-Owned Enterprise Governance

The BJR principle stipulates that the Board of Directors of a company cannot be held responsible for losses arising from a decision-making action, if the action is based on good faith, the principle of prudence, paying attention to applicable laws and prioritizing the principles of good corporate governance (GCG). Unlike private companies, state-owned companies in this case BUMN in running their businesses are bound by a number of regulations related to state management. This characteristic is what sometimes causes fear for BUMN directors to make decisions because of the fear that the business decisions taken are inappropriate decisions or even cause losses. differences of opinion in the application of BJR, where BJR is often faced with the problem of state losses in BUMN. The debate regarding BUMN losses being considered as state losses or not as state losses in practice is still ongoing in the courtroom. This fact can be seen from several court decisions that believe that losses from BUMN or BUMN subsidiaries are state losses, so that the actions of directors that result in such losses become a criminal act. This study uses a form of juridical-normative research, namely research on written legal norms to answer problems regarding the regulation and application of law related to the enforcement of Corruption Crimes supported by literature studies relevant to the problems discussed, namely the application of Business Judgement Rules, then analyzed and concluded in writing. The approach used by the compiler is a conceptual approach and a case approach. The results of the research and discussion obtained that the Application of Business Judgement Rules in Decision Making in the Context of BUMN Business Management, namely the Enforcement of Corruption Crimes in practice is found in the proof of corruption, especially Article 2 and Article 3 of the Corruption Eradication Law which contains elements of unlawful acts. Both unlawful acts in civil law and criminal law as well as regulations in the PT Law clearly state acts that cause losses. In the event of an alleged corruption crime in the BUMN company, this is because the State in terms of asset utilization through BUMN has assets that may not have been fully utilized.

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Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2025-05-07
DOI
https://doi.org/10.5281/zenodo.15354751
Primary Topic
Legal and Policy Analysis in Indonesia
Type
article
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article

Strategic Regulatory Solutions for Implementing the Business Judgment Rule in State-Owned Enterprise Governance

Zenodo (CERN European Organization for Nuclear Research)
Legal and Policy Analysis in Indonesia
article

Strategic Regulatory Solutions for Implementing the Business Judgment Rule in State-Owned Enterprise Governance

article en

Abstract

The BJR principle stipulates that the Board of Directors of a company cannot be held responsible for losses arising from a decision-making action, if the action is based on good faith, the principle of prudence, paying attention to applicable laws and prioritizing the principles of good corporate governance (GCG). Unlike private companies, state-owned companies in this case BUMN in running their businesses are bound by a number of regulations related to state management. This characteristic is what sometimes causes fear for BUMN directors to make decisions because of the fear that the business decisions taken are inappropriate decisions or even cause losses. differences of opinion in the application of BJR, where BJR is often faced with the problem of state losses in BUMN. The debate regarding BUMN losses being considered as state losses or not as state losses in practice is still ongoing in the courtroom. This fact can be seen from several court decisions that believe that losses from BUMN or BUMN subsidiaries are state losses, so that the actions of directors that result in such losses become a criminal act. This study uses a form of juridical-normative research, namely research on written legal norms to answer problems regarding the regulation and application of law related to the enforcement of Corruption Crimes supported by literature studies relevant to the problems discussed, namely the application of Business Judgement Rules, then analyzed and concluded in writing. The approach used by the compiler is a conceptual approach and a case approach. The results of the research and discussion obtained that the Application of Business Judgement Rules in Decision Making in the Context of BUMN Business Management, namely the Enforcement of Corruption Crimes in practice is found in the proof of corruption, especially Article 2 and Article 3 of the Corruption Eradication Law which contains elements of unlawful acts. Both unlawful acts in civil law and criminal law as well as regulations in the PT Law clearly state acts that cause losses. In the event of an alleged corruption crime in the BUMN company, this is because the State in terms of asset utilization through BUMN has assets that may not have been fully utilized.

Zenodo (CERN European Organization for Nuclear Research)
Universitas Pembangunan Nasional Veteran Jakarta (ID)
Peace, Justice and strong institutions
Openalex Percentile: Top 38%
Legal and Policy Analysis in Indonesia
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