Code of Ethics as an Instrument in Improving the Performance of the BUMD Supervisory Board

Abstract

Regional Owned Enterprises (from now on referred to as BUMD) is a company in Indonesia. A company that is in the form of a BUMD is one type of company that is a legal entity. Based on Law Number 23 of 2014 concerning the Regional Government, the management of BUMD has not yet been regulated in detail regarding the procedures for managing BUMD. In the management of BUMD, there is the domination of power and authority. BUMD has a dual task of providing public benefits and being in charge of making a profit. Management of BUMD so that it can run by Good Corporate Governance, of course, depends on the appointment of members of the Supervisory Board. The Supervisory Board in BUMD consists of government of icials / SKPD and independent supervisors from the general public's selection. The problems faced by almost all BUMDs in Indonesia are the basis for regulating BUMD and the principles of managing BUMDs that have been contaminated with the bureaucratic system; BUMD operations are inef icient, and BUMD has not been optimal in providing public services and the character of BUMD based on the principles of Good Corporate Governance (GCG). Based on the background above, the formulation of the problem in this article is how the characteristics and limitations of the BUMD Supervisory Board (perumda) in realizing optimal BUMD management. The purpose of this research is to find concepts or ideas regarding the character, authority, rights, obligations, and code of ethics for the Board of Trustees that meet GCG standards or measures. This research uses normative research.