Corporate Governance In Indonesia Research Articles

Criminal Liability in The Perspective of Corporations' Crimes

This study explores corporate criminal liability in the context of Indonesia’s legal system, focusing on the complexities arising from corporate crime enforcement. Corporate crime, involving illegal activities by business entities for profit, requires a distinct legal approach since corporations as legal subjects cannot be held accountable in the same way as individuals. The research reviews various laws, including the Limited Liability Company Law and the Anti-Corruption Law, examining the challenges in applying these regulations, particularly in proving corporate intent and responsibility. Using a normative legal research method, the study analyzes legal documents and case studies to understand how Indonesia handles corporate crime. The findings reveal significant enforcement difficulties due to overlapping legal frameworks, gaps in corporate oversight, and insufficient legal mechanisms. International comparisons, such as the U.S. doctrine of "vicarious liability," highlight the potential for stronger corporate governance in Indonesia. The study concludes that harmonizing regulations and strengthening law enforcement are critical to improving corporate criminal liability in Indonesia, with recommendations for better compliance systems and enhanced international cooperation.

Impact of Intellectual Capital and Islamic Corporate Governance on Financial Performance of Indonesian Islamic Commercial Banks

The aim this study is to investigate the relationship between intellectual capital, Islamic commercial banks' financial performance, and Islamic corporate governance in Indonesia from 2017 to 2019. The methodology used in the study is quantitative. The people are all Muslims. Commercial banks that have Financial Services Authority registrations (OJK) over the three-year period (2017-2019). The sample is determined using a saturated sampling technique, resulting in 14 Islamic Commercial Banks and forty-two observations in total. The analytical approach is panel data regression analysis and data processing with Eviews 9. The study's findings demonstrate that intellectual capital has a significant impact on return on assets. In contrast, the Sharia Supervisory Board has little effect on Return on Assets. However, the Commissioners' Board and the Directors Board both significantly influence Return on Assets.

The Impact of Corporate Governance in Indonesia's Biggest Banks on Accounting Conservatism Through Audit Quality

The Impact of Corporate Governance in Indonesia's Biggest Banks on Accounting Conservatism Through Audit Quality

Implementation of BUMN Minister Regulation Number 09/MBU/2012 Implementation of Good Corporate Governance in Bumida Insurance Companies

This research aims to determine the implementation of regulation-09/MBU/2012 concerning the Implementation of Good Corporate Governance in Bumida general insurance companies. The type of research used is empirical using statutory, conceptual and sociological approaches. The source of legal materials used is secondary data consisting of primary, secondary and tertiary legal materials and primary data. Based on the research results, it is known that the arrangements used in implementing the principles of implementing good corporate governance in Indonesia are regulated in the Minister of State-Owned Enterprises Regulation number PER-01/MBU/2011 with amendments to PER-09/MBU/2012 concerning the Implementation of Good Corporate Governance in State-Owned Enterprises (BUMN). Furthermore, the principles for implementing good corporate governance in Indonesia are strictly regulated through the Decree of the Minister of BUMN Number Kep-117/M-MBU/2002 concerning the Implementation of Good Corporate Governance Practices in State-Owned Enterprises ( BUMN) which was then refined by Minister of State for BUMN Regulation Number: PER-09/MBU/2012 and Bumida has implemented good corporate governance as proven by the existence of an ISO certificate, if there is an ISO certificate it means it has been checked and has implemented the implementation of corporate governance which is good, the Mataram branch of Bumida Insurance is transparent on the financial side because it is a non-banking financial company. Bumida entered the FKLJK forum (financial services institution communication forum) which is directly supervised by the OJK.

THE IMPACT OF POLITICAL TIES, FAMILY OWNERSHIP AND BOARD POSITIONS ON GOOD GOVERNANCE: A LITERATURE REVIEW

This article explores the evolution of corporate governance in Indonesia through literature review approach. The article accentuates the pivotal role of political connections in surmounting external challenges, while vigilantly recognizing potential risks, such as manipulated financial reporting aligned with the interests of controlling shareholders. Within the realm of family-owned enterprises, where familial influence often permeates key leadership roles, the centralized nature of family ownership introduces complexities in decision-making, necessitating a careful examination of policy quality to attain organizational objectives. In its conclusion, the study also underscores the perpetual necessity for transparent practices, stringent regulatory enforcement, and ethical governance. The intricate interplay between ownership structures, political affiliations, and corporate performance emerges as a crucial focal point for fostering enduring prosperity and resilience within the landscape of Indonesian businesses.

Deconstruction of Agency Theory with “Bisa Rumangsa” Culture

The study aims to build a new discourse on agency theory with the application of a “bisa rumangsa” culture in the implementation of corporate governance in order to achieve good corporate governance. Good corporate governance in Indonesia is hampered due to conflict of interests between managers and owners. Each of these managers and owners must understand the limitations of their rights and obligations. Understanding these limits will be born if they apply the culture of “bisa rumangsa”. This research is qualitative research with a radical humanist paradigm. The result of the research is a new concept regarding the application of agency theory by using a “bisa rumangsa” culture.

The Critical Factors Affecting the Implementation of Corporate Governance in Indonesia: A Structural Equation Modeling Analysis

The concept of corporate governance has become a topic of global discussion since The New York Stock Exchange crashed on 19 October 1987, when many multinational companies listed on the New York Stock Exchange experienced large financial losses. CG was a preventive measure and increased investor confidence in the company. CG implementation is influenced by isomorphisms, such as organizational structure and the external environment in the form of regulation, competition, and culture. In Indonesia, the quality of CG implementation still contributes to the country’s economic growth. Weak CG implementation is due to the adoption of the western system immediately. It arises due to a high ownership structure, government intervention, underdeveloped capital markets, and weak law enforcement. This study aims to examine and analyze more deeply about factors that cause CG not to be inadequate to develop properly in Indonesia. Private and state-owned companies in the East Kalimantan Industrial Estate are the research samples for the SOR modelling exploration method. The SOR (stimulus-organism-response) model is a novelty in identifying CG implementation. Identification of the model to obtain a structural model is carried out by using PLS-SEM (partial least square structural equation modelling) through an institutional approach. The results found that the organizational structure and national cultural environment strongly influence CG implementation through the mediation of organizational structure. The contribution to understanding the national cultural environment in CG implementation efforts will be driven by organizational structure. Comprehensively, this study describes other factors such as organizational culture, environment competition, and the environment mediated by organizational structure. The national cultural environment mediated by organizational culture did not significantly affect CG.

Zmijewski (X-Score) Model for Financial Distress Prediction: Implementing Good Corporate Governance In Indonesia

Zmijewski (X-Score) Model for Financial Distress Prediction: Implementing Good Corporate Governance In Indonesia

Systematic Literature Review and Research Agenda of Corporate Governance in Indonesia

This study aims to provide a comprehensive overview from various studies in the scope of corporate governance in the Indonesian market using systematic literature review method. This study provide insights about Indonesian corporate governance studies phases, identify gaps, and suggest outlines for future agenda research. There are 37 studies include in this systematic literature review study. The study used after doing an assessment of the quality, based on predetermined criteria. Furthermore, the studies used will be extracted to collect the methodology, theories, characteristics, and results of the research. From this study, we can conclude that in general, Indonesian good corporate governance led companies to improve its financial performance positively. Even the corporate governance code also encourages companies to produce voluntary disclosures in various fields. From this review, a conclusion can be drawn from the research which mentions the results that contradict with the theories and the general results of the research. The gaps in the results are caused by the differences in methodologies, sample, and study period. Further, this condition can be explained by the presence of moderating variables in the form of Indonesia's political and economic conditions.

Historical Development of Good Corporate Governance in Indonesia (1998-2020): Government’s Role in Establishing the Regulatory Framework

The issue of Good Corporate Governance (GCG) has developed over the centuries as a reaction to systemic crises or corporate failures. The well-documented failures of the Indonesian government are the 1997-1998 Asian financial crisis and the 2008 global financial crisis. Many experts regard Indonesia’s recession as driven by poor government oversight of the financial sector. This study aims to analyze the historical impact of GCG in Indonesia in the 1998-2020 period on government performance. This study employs Foucauldian archaeology and uses official government documents (laws and policies and their derivatives), books, journals, mass media articles (offline and online), and websites as data sources. The data analysis consists of several activities, including collecting, presenting, and inferring data. This study concludes that the development of GCG in Indonesia has increased from a regulatory perspective. However, the development of GCG in Indonesia impacts the government’s performance because there are still many problems in the practice of GCG in Indonesia. One of the problems is the Jiwasraya financial scandal. The Financial Scandal occurred due to the poor performance of the government, in this case, the Financial Services Authority (OJK), in supervising the insurance industry

Board Structure in State-Owned Enterprises (SOEs): Two-tier Model Analysis on the Implementation of Corporate Governance in Indonesia

Board Structure in State-Owned Enterprises (SOEs): Two-tier Model Analysis on the Implementation of Corporate Governance in Indonesia

Praktik akuntansi lingkungan dan biaya modal pada perusahaan di Indonesia

Observe the development of social responsibility, especially in the field of environment, and the performance of corporate governance in Indonesia are important factors in the company's operations. A number of companies do not participate in this disclosure activity, which will result in new costs that will be borne by the company. The high and low cost of capital owned by a company will show how much risk the company will accept in order to obtain funding for the company's sustainability. This research was conducted to produce an analysis of the effect of the level of environmental accounting practices on the cost of equity capital or the cost of debt capital and the effect of corporate governance performance on the cost of equity capital or the cost of debt capital. This study uses data on financial statements and sustainability reports of companies listed on the Indonesia Stock Exchange from 2016 to 2020. The test results show that financial environmental accounting practices and corporate governance performance consist of block ownership, board size, gender diversity, and board tenure. has a significant effect on the cost of equity capital. on the cost of debt capital, only the board size variable has a significant effect. This research encourages companies to be able to participate in the disclosure of environmental performance and corporate governance.

Good Corporate Governance Model on Corporate Financial Performance in the Era of the Digital Revolution on the Indonesia Stock Exchange

The weakness of good corporate governance in Indonesia is still weak. One of the important roles of implementing good corporate governance in supporting sustainable economic growth and stability is to improve financial performance in the current era of the digital revolution. Good management will cause the supervisory process to run well so that the company's financial performance can be monitored and have an impact on the planned targets being achieved. The achievement of the company's target makes financial performance increase so that it has an impact on increasing the value of the company and maintaining the company's sustainability in the long term. This study aims to identify and overcome obstacles that can hinder the company's ability to generate profits and improve the desired company's financial performance. The method of analysis in this study uses multiple linear regression. On the other hand, the research also uses other tests, namely descriptive statistical tests and hypothesis testing. The results of the study indicate that good corporate governance simultaneously has a significant effect on financial performance with a value of 16,246. The author advises companies to pay attention to the existence of good corporate governance which is not just meeting the requirements of legislation, if good corporate governance is improved, there will be an increase in costs to be incurred by the company.

The effect of good corporate governance and company size on firm value

The purpose of this study is to see whether there is an effect of the implementation of good corporate governance, firm size, and financial performance on firm value. And the results are known if the implementation of good corporate governance has a positive effect on firm value which indicates that the implementation of good corporate governance in Indonesia has a good impact on the development of firm value, in contrast to firm size and financial performance which have a negative effect on firm value, which is known if assets and profits are high. compared best with low firm value, and vice versa. On the one hand, financial performance can be an intervention variable for good corporate governance and firm size on firm value in a positive direction, which means that if firm profits can have an influence on the relationship between firm size and good corporate governance, the firm value will increase. From these objectives and results, it is recommended for further researchers to explore the indicators that exist in each member to find out valid findings by reviewing various aspects.

Boardroom integrity and the crusade against fraud: Navigating corporate governance in Indonesia

This study delves into the intricate landscape of corporate governance within Indonesian corporations, scrutinizing its efficacy in deterring financial statement fraud. By amalgamating insights from a systematic literature review, quantitative analyses of secondary data, and logistic regression methods, the research elucidates the multifaceted interplay between various governance mechanisms and the persistence of fraudulent activities. Central to our findings is the pivotal role of board size in enhancing corporate oversight and mitigating fraud, juxtaposed against the ambiguous impacts of other governance elements such as audit committee effectiveness and board experience. This complexity underscores the paramount importance of ethical leadership and the "tone at the top" in fostering a corporate culture steeped in integrity, which is instrumental in fraud prevention. The paper posits that the dual focus on strengthening structural governance frameworks and nurturing ethical corporate leadership is essential for safeguarding Indonesia's economic integrity and promoting sustainable development. Through this lens, the study not only contributes to the academic discourse on corporate governance but also offers actionable insights for policymakers, corporate leaders, and regulatory bodies striving to combat corporate fraud in Indonesia.

Determinants of Transfer Pricing Aggressiveness with the Moderation of Corporate Governance in Indonesia and Malaysia

This research aims to analyze and empirically prove the effects of firm size, profitability, and leverage on transfer pricing aggressiveness moderated by corporate governance. It used a sample consisting of 73 multinational firms listed in both www.idx.co.id and www.bursamalaysia.com from 2018 to 2019. The data were analyzed using multiple linier regression and moderated regression analysis (MRA) to analyze and empirically prove the effects of firm size, profitability, and leverage on transfer pricing aggressiveness moderated by corporate governance. The results showed that leverage positively affected transfer pricing aggressiveness, whereas firm size and profitability did not. Corporate governance evidently weakened the effect of leverage on transfer pricing aggressiveness. This research contributes to increasingthe state revenue through the taxation sector by exposing the determinants of transfer pricing aggressiveness that harm the state, and to assist public policy makers, especially those who are in charge of the policies related to transactions with special relationship.

Implikasi Pengawasan Tata Kelola dan Corporate Social Responsibility Terhadap Profitabilitas di Indonesia

Studi ini menginvestigasi implikasi antara pengawasan dari karakteristik tata kelola-yang terdiri dari dewan komisaris independen, jumlah komite audit, kepemilikan institusional, dan kepemilikan manajerial dan corporate social responsibility (CSR) terhadap profitabilitas. Teknik regresi menggunakan data panel dengan rincian 2.060 data dari perusahaan yang terdaftar di Bursa Efek Indonesia tahun 2015-2019. Kepemilikan manajerial dan CSR berpengaruh positif dan signifikan terhadap return on asset (ROA) sehingga dinilai mereduksi agency cost. Sebaliknya, dewan komisaris independen, jumlah komite audit, dan kepemilikan institusional tidak berpengaruh terhadap ROA sehingga mengkonfirmasi penurunan tata kelola perusahaan di Indonesia. Studi ini berkontribusi menunjukkan adanya regulasi tata kelola "yang hanya dipenuhi" tanpa memberi substansi, serta menekankan bahwa aspek sosial eksisten dalam kajian stakeholder perusahaan.

ANALISA PENERAPAN PRINSIP GOOD COORPORATE GOVERNANCE (GCG) STUDI KASUS PADA SEKOLAH TINGGI TEKNOLOGI MIGAS BALIKPAPAN

Good Corporate Governance (World Bank) (Tangkilisan; 2003) is a collection of laws, regulations and rules that must be fulfilled that can encourage the performance of company resources to work efficiently, resulting in long-term sustainable economic value for shareholders and the surrounding community. overall. Then according to Zarkashi (2008). Good Corporate Governance (GCG) is a structure used by stakeholders, shareholders, commissioners and managers to formulate company goals and means to achieve company goals, as well as a means to achieve these goals and monitor performance. There are five principles for Good Corporate Governance in Indonesia: transparency, accountability, responsibility, independency, and fairness. content analysis, which is a method of collecting research data through observation and analysis techniques of the content or message of a document (including: advertisements, reports, employment contracts, journals, magazines, or newspapers. The purpose of content analysis is to identify the characteristics or specific information contained in a document to produce an objective and systematic description (Bambang, 1999).

Bagaimana Good Corporate Governance (GCG) dalam Keberlanjutan Perusahaan?

<p>This research aimed to examine the effect of Good Corporate Governance (GCG) on firm value. Good Corporate Governance (GCG) was measured by the Corporate Governance Perception Index (CGPI). CGPI was assessed by the Indonesian Institute of Corporate Governance (IICG), an independent institute that was conducting the development of Good Corporate Governance in Indonesia. The firm value was reflected by the stock price, PBV (Price to Book Value), and Tobin’s Q. This study used ten firms as a sample consistently listed in the Indonesian Stock Exchange and followed the CGPI program during 2014-2019. The sample was determined by using purposive sampling. Analysis of data in this study used Structural Equation Modeling-Partial Least Square (SEM-PLS) with SmartPLS 3rd version. The result showed that CGPI reflected Good Corporate Governance affected firm value (stock price, PBV, and Tobin’s Q).</p>

Female in board and earnings management: Evidence in Indonesia non-financial firms

The purpose of this study is to analyze the effect of females on the board on earnings management in Indonesia's Non-Financial Firms. Females on the board comprise of females in the board of commissioners, females in the board of directors, and females in the audit committee. This study also breakdown the full sample into small, medium, and large firms. The sample of this study consists of 291 non-financial firms listed in the Indonesia Stock Exchange over the period 2015-2017. This study measures earnings management using discretionary accruals. The data were analyzed using panel data regression. This study found that females in the board of commissioners, females in the board of directors, and females in the audit committee do not affect earnings management. This study also found that females in the board of directors in small firms have a positive effect on earnings management and have a negative effect on medium firms. This study contributes to the role of females in corporate governance in Indonesia's non-financial firms to reduce earnings management. JEL Classification: G34, M41 DOI: https://doi.org/10.26905/jkdp.v24i4.4230