ANALYSIS OF THE IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE BASED ON ASEAN CORPORATE GOVERNANCE SCORECARD: CASE STUDY PT JAKARTA PROPERTINDO (PERSERODA)

Ferry Richard Hamonangan,Ancella A Hermawan Ancella A Hermawan

doi:10.31933/dijemss.v1i4.258

Abstract

So far, a lot of research has seen the implementation of Good Corporate Governance (GCG) in private companies. Like SOEs, Regionally Owned Enterprises (BUMD), although running the same business as private companies, have different characteristics that can cause Agency Problems that can harm stakeholders. This study aims to analyze the quality of GCG implementation at PT Jakarta Propertindo (Perseroda), a BUMD owned by the Provincial Government of DKI Jakarta, using a scoring approach from the ASEAN Corporate Governance Scorecard. This study only uses criteria in the ASEAN Corporate Governance Scorecard that can be used to measure a BUMD. This is because the characteristics of BUMD are not exactly the same as pure private companies. The results indicate that PT Jakarta Propertindo (Perseroda) has not fully met all the GCG principles contained in the ASEAN Corporate Governance Scorecard.

Highlights

One of the main experiences that can be drawn from the events of the 1998 economic crisis in Indonesia is awareness of the importance of Good Corporate Governance (GCG)
2015 ASEAN Corporate Governance Scorecard Country Reports and Assessments data, the average value achieved by companies in Indonesia in the aspect of openness and transparency in 2015 was 17.5
Process of the Directors and Board of Commissioners; People on the Board of Directors and Board of Commissioners; and Performance of the Directors and Board of PT Jakarta Propertindo (Perseroda) has taken several actions to improve the quality and effectiveness of Good Corporate Governance. This is seen from the company's ability to meet several subparameters in ASEAN Corporate Governance Scorecard (ACGS), this is not required in the Decree of the Governor of DKI Jakarta Province No 96/2004

Summary

Introduction

One of the main experiences that can be drawn from the events of the 1998 economic crisis in Indonesia is awareness of the importance of Good Corporate Governance (GCG). The experience of the 1998 crisis brought changes for the government and the private sector in strengthening the implementation of GCG in Indonesia through both government regulations and the demands of commitment from every element in the company to implement GCG. The application of GCG should be done by companies that are not listed on the stock exchange, both private and state-owned enterprises (BUMN) and Regional-Owned Enterprises (BUMD). The government sees that the implementation of good GCG is a must for all companies both public companies, private companies, BUMN and BUMD. For BUMDs in Indonesia in general, they must follow Government Regulation No 54 of 2017 concerning BUMDs, namely the Government mandating all BUMDs to run companies with good corporate governance

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Conclusion