Application of Good Corporate Governance Principles in the Appointment of the Board of Commissioners in State-Owned Enterprises to Actualize Sustainable Development

DOI

10.2991/978-94-6463-214-9_14How to use a DOI?

Keywords

State-Owned Enterprises; Concurrent Positions; the Board of Commissioners; Good Corporate Governance

Abstract

This perspective paper presents the existence of State-Owned Enterprises (SOE) as business entities that have an important role in economic development in Indonesia related to the livelihood of many people, whose entire or most of the capital is owned by the state through direct investment originating from separated state assets. After the COVID-19 pandemic, the existence of SOEs became more important in order to be the driving force for Indonesia’s economic recovery. The organs of SOEs generally consist of the General Meeting of Shareholders (GMS), the Board of Commissioners, and the Board of Directors. The Board of Commissioners generally plays an important role, namely the supervisory function on the management of SOEs that is adjusted to the principles of Good Corporate Governance (GCG), therefore the appointment must be made through an election in accordance with the laws and regulations. However, in practice, the nomination and appointment of the Board of Commissioners in SOE in some cases is not in accordance with the provisions, causing the elected Commissioner to have concurrent positions. The purpose of this study is to prevent concurrent positions in SOEs, with a comparison to other countries law and implementation on this matter. This study highlights the limitations/criteria for the placement of the Board of Commissioners in SOEs based on GCG principles, and regulatory reformulation regarding the placement of the Board of Commissioners in SOEs in accordance with GCG principles.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Mohamad Fajri Mekka Putra
AU  - Sihabudin
AU  - Budi Santoso
AU  - Reka Dewantara
PY  - 2023
DA  - 2023/07/27
TI  - Application of Good Corporate Governance Principles in the Appointment of the Board of Commissioners in State-Owned Enterprises to Actualize Sustainable Development
BT  - Proceedings of the 1st Brawijaya International Conference on Business and Law (BICoBL 2022)
PB  - Atlantis Press
SP  - 123
EP  - 135
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-214-9_14
DO  - 10.2991/978-94-6463-214-9_14
ID  - Putra2023
ER  -