Juridic Review of The Implementation of Good Corporate Governance Principles in Bumn Banks Related to OJK Regulation Number 55/Pojk.03/2016 Concerning Implementation of Governance For Commercial Banks

Abstract

Corporate Governance, in simple terms, can be interpreted as a system built to direct and control the company so as to create a good, fair and transparent relationship between various parties who have an interest in the company. Companies belonging to the government are also required to apply the principles of Good Corporate Governance, including state-owned banks (BUMN Banks). The research method used in writing this journal is a normative juridical research method, namely research is carried out based on the main legal material by examining theories, concepts, legal principles and legislation related to research. The principles that must be applied in the implementation of Good Corporate Governance in Government-owned Banks (BUMN Banks) in accordance with the provisions of the financial services authority include transparency, accountability, responsibility, independence, and fairness. In the implementation of good corporate governance at banks in Indonesia, there is still an assumption that the implementation of good corporate governance is only a form of compliance with the provisions of company management and not a necessity that is really needed to improve company performance. Good Corporate Governance shows the relationship pattern between Management and all stakeholders, the relationship between Management and the Board of Commissioners and the relationship between Management which is based on ethics and Core Values which is supported by a system, process, work guideline and organization to achieve maximum performance. Consistent implementation of good corporate governance can lead to improvements in both financial and non-financial performance so as to maintain business sustainability and the Company's long-term goals.