The Importance of Transparency Principles in Management of State-Owned Plantation Enterprises

DOI

10.2991/assehr.k.200306.175How to use a DOI?

Keywords

principles of transparency, management of SOPE, fraud

Abstract

The contribution of State-Owned Plantation Enterprises (SOPE) of has a strategic role as one of the economic institutions in Indonesia. This study discusses the importance of the transparency principle in the management of SOPE to anticipate various frauds. One of the factors that cause the SOPE inefficient is the company’s management weakness. The principles of good corporate governance in the Republic of Indonesia Act No.19 / 2003 about State-Owned Company (SOC) stated that the SOC have obligations to implement the principles of professionalism, efficiency, transparency, independence, accountability, responsibility, and fairness. The research method is normative juridical and the study found there are violations of the transparency principle in the SOPE management. It can cause economic losses for the company, investors, and the state. In conclusion, violations of the transparency principle such as false and misleading statements that are not in accordance with facts are acts of fraud. The importance of application the principle of transparency in the SOPE management is to anticipate the various frauds intended. Therefore, the implementation of the transparency principle in the SOPE management must be implemented with a strict supervision system through due diligence. All fraudulent practices in SOPE must also be legally accounted for, without exception, because it can harm the company, investors, the state, and stakeholders.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Anderson Siringo-Ringo
AU  - Bismar Nasution
AU  - Ningrum Natasya Sirait
AU  - Mahmul Siregar
PY  - 2020
DA  - 2020/03/13
TI  - The Importance of Transparency Principles in Management of State-Owned Plantation Enterprises
BT  - Proceedings of the International Conference on Law, Governance and Islamic Society (ICOLGIS 2019)
PB  - Atlantis Press
SP  - 29
EP  - 33
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.200306.175
DO  - 10.2991/assehr.k.200306.175
ID  - Siringo-Ringo2020
ER  -