Streamlining State-Owned Enterprise Subsidiary Dissolution: A Prosecutorial Efficiency Approach

DOI

10.2991/978-2-38476-315-3_71How to use a DOI?

Keywords

SOE Subsidiary Dissolution; Economic Efficiency; Prosecutorial Authority; Legal Framework

Abstract

Efforts to enhance efficiency and consolidate state-owned enterprises (SOEs) implemented by the government in the post-pandemic economic recovery are hindered by the difficulty in the mechanism for dissolving unhealthy subsidiaries of SOEs. The dissolution mechanism through the General Meeting of Shareholders (GMS) is time-consuming and costly, thus necessitating an alternative mechanism that is more effective. This research aims to identify the problems in the dissolution of SOE subsidiaries and to formulate alternative mechanisms by strengthening the authority of the prosecutor’s office to file dissolution requests with the court. The method used in this research is qualitative juridical analysis, supported by the economic analysis of law theory. Through this approach, the study examines legal frameworks, case studies, and economic impacts to provide a comprehensive understanding of the current challenges and potential solutions. The results of this research indicate that the authority of the prosecutor’s office to dissolve SOE subsidiaries is hindered by a legal vacuum, thus it has not been implemented yet. New norms are needed to regulate the position of SOE subsidiaries so that business losses incurred can be categorized as state losses in the legal sense. The authority of the prosecutor’s office can enhance economic efficiency in SOE dissolution, prevent long-term losses, and improve the accountability of state financial management under the supervision of the prosecutor’s office. Ultimately, empowering the prosecutor’s office with this authority could streamline the dissolution process, leading to significant economic benefits and more effective governance of state assets.

Copyright

© 2024 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  - Thoriq Mulahela
AU  - Lego Karjoko
AU  - Hartiwiningsih Hartiwiningsih
PY  - 2024
DA  - 2024/12/24
TI  - Streamlining State-Owned Enterprise Subsidiary Dissolution: A Prosecutorial Efficiency Approach
BT  - Proceedings of the International Conference on Cultural Policy and Sustainable Development (ICPSD 2024)
PB  - Atlantis Press
SP  - 517
EP  - 527
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-315-3_71
DO  - 10.2991/978-2-38476-315-3_71
ID  - Mulahela2024
ER  -