Indonesian State Owned Enterprises (BUMN or SOEs), and the Urgency of Implementation of Principle of ’Business Judgment Rule’

Abstract

State owned enterprises (SOEs or BUMN) companies need management which generally emphasizes governance which is more concerned with the principles of efficiency and effectiveness. In reality, it is evident that in Indonesia state-owned companies have an enormous economic and social role, and are an extraordinary force and economic driver. In Singapore and Malaysia, SOEs also contribute greatly to economic activities. In Indonesia, SOEs are included in a number of diverse sectors or fields of business, from banking, energy, food, infrastructure, and transportation, both sea, land and air. A total of 118 SOEs in 2015 with a total assets of Rp5,395 trillion would certainly be able to make a greater contribution to economic growth in 2016 if they were able to synergize in managing the business sector. BUMN assets are also estimated to be greater through the SOE asset revaluation process. The Constitutional Court in case number 48 / PUU-XI / 2013 and case No. 62 / PUU-X1 / 2013 dated May 22, 2013 decided that management BUMN must use the principle of Business Jugment Rule. In the ruling, it was also stated that state owned finances were state finances. As a result, this ruling brings legal certainty about the position of finance of BUMN. This paper explains that the development of BUMN (state owned enterprises-SOEs) as a corporation that carries out social and business missions is facing constitutional juridical problems and facing the challenges of globalization. Factually, at this time legal development cannot be separated from the influence of globalization. Globalization in the economic field has affected various fields of the business sector in the world.