Vol. 3, Issue 4 (2018)
The board of Directors accountability in managing state-owned enterprises in Indonesia
Author(s): Fery Ichsan Kurnia, Alvi Syahrin, Ilyas Ismail, Mohd Din
Abstract: State Ownership Enterprise management in Indonesia has private law aspects and public law aspects because there is state finance aspect at SOEs capital. SOEs directors have risks in making business decisions that make SOEs not competitive than private companies. This research describes the concept of state financial management and management of SOEs so as to know the boundary between SOE losses caused by business risk and corrupt acts of the SOEs Directors. This research is a normative legal research that using legislation approach and conceptual approach. The data are secondary data. Data analysis using analytical descriptive method. The directors of SOEs use the principle of Business Judgment Rule doctrines which stipulates that the Board of Directors is not responsible for any loss caused by a business decision making action, if the action by the Board of Directors is based on the good and caution.