Governance Principles Research Articles

Inelegant enforcement of anti-corruption laws and good governance: a persistent catalyst for coups d’état and poverty in Africa

Purpose The purpose of this paper is to scrutinise the intricate relationship between the inadequate enforcement of anti-corruption laws and the application of good governance and the persisting prevalence of coups d'état and poverty in Africa. Design/methodology/approach This paper uses a doctrinal legal research approach, synthesising existing literature while extensively analysing primary and secondary legal sources. Its primary aim is to scrutinise the intricate relationship between the inadequate enforcement of anti-corruption laws and the application of good governance and the persisting prevalence of coups d'état and poverty in Africa. The choice of case study countries Burkina Faso, Chad, Gabon, Guinea, Mali, Niger and Sudan stems from their historical significance, regional diversity, data accessibility and potential insights into the interplay among anti-corruption enforcement, governance, poverty and coups d'état in Africa. Findings The enforcement of anti-corruption laws and the promotion of good governance are indispensable for democracy and economic stability; their suboptimal enforcement directly contributes to coups d'état and the worsening of poverty in African nations. It emphasises the imperative for African countries to consistently and proficiently enforce anti-corruption laws and adhere to principles of good governance, effectively and responsibly, to mitigate coups d'état and alleviate poverty in the region. Originality/value This study designs a model strategy for combating coups d'état and corruption in Africa as contribution to knowledge in the field of study.

The Implementation of Good Governance for Optimizing the Potential Corruption Prevention in the Development of the Nusantara (IKN)

The decision to develop the Archipelago Capital (IKN) as the capital city of Indonesia is one of the state political decisions that has a big vision towards a Golden Indonesia 2045. As a project with a large and complex budget, its financial management must be carried out in an accountable manner, free from corrupt practices, and supported with a strict monitoring system so that it can run by prioritizing the principles of good governance. Therefore, IKN development policies and regulations must be in line with these principles and objectives. This study aims to describe the current condition of IKN development related to the potential for corruption, opportunities, and obstacles in preventing it. So, this study can produce policy recommendations that can be implemented in the implementation of IKN development. The legal research method used in writing this thesis is a normative juridical research method, with a statutory approach. The research uses qualitative analysis using primary and secondary legal data/material sources. Data/legal material processing activities begin with collection, analysis, and presentation, then formulated and presented systematically and descriptively according to the respective subject matter. The results of the study show the potential for corruption in the institutional aspects of the IKN Authority which are still weak in supervision, financing schemes that are vulnerable to conflicts of interest, and the implementation of IKN development where the procurement of goods still has the potential to give rise to bribery and conflicts of interest. This makes the development of IKN not in line with the principles of good governance. So, to prevent potential corruption in IKN development, better prevention optimization is needed in these three aspects, both in the preparation of clauses in regulations and the formation of institutions. It is hoped that this will enable the IKN project to run efficiently, effectively, and without corrupt practices occurring.

Catalyzing Sustainable Investment: Revealing ESG Power in Predicting Fund Performance with Machine Learning

AbstractIn today’s dynamic financial landscape, the integration of environmental, social, and governance (ESG) principles into investment strategies has gained great significance. Investors and financial advisors are increasingly confronted with the crucial question of whether their dedication to ESG values enhances or hampers their pursuit of financial performance. Addressing this crucial issue, our research delves into the impact of ESG ratings on financial performance, exploring a cutting-edge machine learning approach powered by the Extreme Gradient algorithm. Our study centers on US-registered equity funds with a global investment scope, and performs a cross-sectional data analysis for annualized fund returns for a five-year period (2017–2021). To fortify our analysis, we synergistically amalgamate data from three prominent mutual fund databases, thereby bolstering data completeness, accuracy, and consistency. Through thorough examination, our findings substantiate the positive correlation between ESG ratings and fund performance. In fact, our investigation identifies ESG score as one of the dominant variables, ranking among the top five with the highest predictive capacity for mutual fund performance. As sustainable investing continues to ascend as a central force within financial markets, our study underscores the pivotal role that ESG factors play in shaping investment outcomes. Our research provides socially responsible investors and financial advisors with valuable insights, empowering them to make informed decisions that align their financial objectives with their commitment to ESG values.

Motion Sickness: Holding the Acupressure Point of Village-Owned Business Entities on the Wheel of “Good Corporate Governance”

The transcription of Good Corporate Governance (GCG) scenarios in various state regulations basically attempts to build plots to move various economic resources from an area with low productivity to an area with higher productivity with greater results. However, this condition is different when the Indonesian Government wants Village-Owned Enterprises (BUMDes) which normatively and culturally are not designed for entrepreneurship like BUMD/BUMN. The consequence of this desire is that in its implementation BUMDes tends to be neglected and not bound by the principles of Good Corporate Governance (GCG). Through juridical-normative research methods and 3 (three) legal approaches, this research focuses on "Motion Sickness" towards BUMDes resulting from their placement in the "return on investment" space without Good Corporate Governance (GCG). The results of this research show that when analogous to a vehicle, BUMDes experience Motion Sickness or nausea due to: First, the psychological burden on the apparatus in the Village Government; Second, the Good Corporate Governance (GCG) Design is not in accordance with the BUMDes Design. Hence, the acupressure points that need to be pressed in dealing with BUMDes problems include: legal revitalization in the Village Law, overcoming work culture (such as fraud and insider transactions), sterilization of political elements (separating the interests of village officials from interests of Business Entities), and expansion of the business environment. So that in the future Corporate Governance and Corporate Management in BUMDes can be realized through the commitment of stakeholders such as: Capital Owners/GMS, Board of Supervisory/Commissioners, and Board of Directors.

Collaboration or Contravention? Ramifications For Effective Participatory Decision-Making in Collaborative Forest Management at Echuya Central Forest Reserve, South Western Uganda

Participatory decision-making has been extensively adopted worldwide as an essential mechanism and a good governance principle to reach a consensus in natural resource management. However, in most communities, local people who depend on forests are not involved in the decision-making process regarding conserving protected areas. This research assesses the ramifications of collaboration or contravention on effective participatory decision-making in collaborative forest management in Echuya Central Forest Reserve. It provides insights into how community consultations and participation of forest-adjacent communities in planning meetings influence the conservation of protected areas. We collected data from a total of 639 respondents, including Collaborative Forest Management (CFM) group members and non-CFM community members, government institutions, conservation organizations, and local community leaders, using semi-structured questionnaires, interview guides, and Focus Group Discussion guides. Results indicate that community consultations allow CFM stakeholders, particularly community members, to give ideas on how such projects can be implemented without destroying forest resources, promoting the goal of conserving the forest reserve. Community members’ participation in planning meetings allows them to contribute ideas about relevant and appropriate forest conservation approaches. However, the National Forestry Authority (NFA) and other non-community actor groups dominate the decision-making process mainly because the NFA has the legal mandate to manage the forest reserve on behalf of the Government. We concluded that the connivance of government forestry officials with unauthorized forest resource users undermines the spirit of participatory decision-making. Dishonesty and lack of accountability hampered effective participatory decision-making, and low attendance at meetings undermines effective participation in decision-making. Thus, community members’ consistent attendance of meetings is paramount for positive outcomes of participatory decision-making for the conservation of forests

Governance and optimization of public expenditure: A literature review

Introduction/Objective: This study aims to explore the current state of knowledge regarding the relationship between governance and the optimization of public expenditure. Methodology: A bibliometric analysis was conducted in Scopus to examine the evolution of the topic, followed by a systematic review in Scopus, WOS, and Dimensions. Empirical studies addressing the relationship between governance and public expenditure were selected using rigorous quality criteria. The Prisma diagram was applied for the systematic review. Results: The bibliometric analysis revealed a growing research interest since 2011, highlighting the contributions of key authors such as Baldersheim, Canh, and Ståhlberg. Compliance with bibliometric laws was observed, and semantic analysis identified clusters linking governance with expenditure efficiency. The systematic review uncovered a widespread consensus: good governance, characterized by effectiveness, transparency, corruption control, and citizen participation, leads to an optimization of public expenditure outcomes. Empirical findings converge on five main blocks: governance as a catalyst for the impact of public expenditure, governance for greater sectoral efficiency of expenditure, public expenditure targeting vulnerable populations and associated governance, the moderating role of institutions and governance quality, and governance mechanisms to optimize public financial management. Conclusions: There is solid theoretical and empirical support indicating that the incorporation of principles of democratic, participatory, and transparent governance is crucial for efficiently directing public expenditure towards economic and social development. Future research should examine the relative weight of the various dimensions of governance and their impact on the optimal allocation of expenditure across different sectors.

The Effect of The Application of Good Corporate Governance (GCG) Principles on Job Satisfaction and Employee Performance

Applying the principles of good corporate governance in general is very important in all companies, especially in the banking world. Good corporate governance principles make all stakeholders feel fairness, transparency, independence, accountability, and accountability. This study aims to analyse the effect of applying good corporate governance principles on job satisfaction and employee performance, as well as the effect of job satisfaction on employee performance. Public trust in state-owned banks is higher than in private banks. The researcher chose BNI as the research object because BNI is the only state-owned bank that operates full branches globally and is very good at implementing good corporate governance, as evidenced by obtaining a very trusted predicate based on the Corporate Governance Perception Index (CGPI) score. Specifically, the object of research is permanent employees of BNI Regional Office 15 located in East Jatinegara, Jakarta. This study used a survey by distributing questionnaires to 125 respondents. The research method uses SEM PLS. The results showed that applying good corporate governance principles positively affected job satisfaction and employee performance, but job satisfaction did not influence employee performance. The contribution of this research is expected to provide managerial implications for redesigning positions, promotions, salaries, or rewards for permanent employees to provide job satisfaction to employees.

ANALISIS PELAYANAN BPJS DI INDONESIA DALAM MENINGKATKAN KESEJAHTERAAN MASYARAKAT DENGAN PENDEKATAN PROBLEM TREE ANALYSIS

This research aims to identify problems in BPJS services in Indonesia in improving community welfare using a problem tree analysis approach. The problem tree analysis method is used in this research to identify the root of problems in BPJS services, to provide a clearer picture, more appropriate solutions, good treatment priorities, as well as a structured evaluation and improvement process for BPJS services in the future. The research results revealed several main problems in BPJS services, such as low service quality, lack of service management, employee discriminatory behavior, and limited facilities and infrastructure. These problems violate the principles of good governance, such as the supremacy of law, effectiveness, efficiency, equality, accountability, and transparency. This condition makes it difficult for people to access quality and timely health services and can have a serious impact on people's health and welfare. This research suggests the need to increase supervision, optimize coordination, train employees, distribute facilities and infrastructure, and implement a reward and punishment system to improve the quality of BPJS services. With planned improvement efforts, it is hoped that BPJS Health services can provide optimal benefits for the health and welfare of the Indonesian people as a whole. Keywords: Service, BPJS, Good Governance, Problem Tree Analysis

Fungsi dan Kewenangan OJK dalam Pengawasan Kesehatan Bank

One of the key aspects examined is the OJK's authority to take preventive and corrective action against banks that show signs of unsoundness. This analysis provides an in-depth understanding of the effectiveness of the regulatory and supervisory measures taken by the OJK to protect the interests of shareholders, customers and the stability of the financial system. The research results show that OJK has a very important role in ensuring the sustainability and health of the banking sector. With its broad authority, OJK is able to respond quickly to changing market conditions and implement appropriate policies. The implications of these findings include increasing transparency, expanding cooperation with international supervisory institutions, and strengthening the role of the OJK in promoting the principles of good governance in the banking sector.

Leader and the Leadership of the Prophet Muhammad: Strategy and Innovation in the Battle of Trench

This article examines Prophet Muhammad's strategic and innovative leadership during the Battle of the Trench, a pivotal event in early Islamic history. Faced with a large confederate army, Muhammad adopted the unprecedented strategy of digging a trench around Medina, demonstrating his adaptability and inclusiveness by accepting a Persian companion's suggestion, Salman al-Farsi. This tactic effectively neutralized the enemy's advantage, highlighting Muhammad’s foresight and strategic acumen which can only be seen if we read the references in detail and feel the tense occurred on that day. The analysis of this article focuses on Muhammad's leadership qualities, including visionary strategy, resilience, ethical conduct, and inspirational influence. These attributes were crucial in uniting and motivating the Muslim community under extreme adversity. The successful defence of Medina not only solidified the Muslim community but also set new precedents in military tactics and ethical warfare, influencing Islamic governance and leadership principles. The Battle of the Trench serves as a significant historical case study of strategic and ethical leadership shown by Muhammad in facing a direct enemy from outside and a potential internal enemy that turns up in that despairing situation. The insights drawn from Muhammad’s leadership approach are relevant to modern leadership and contemporary challenges, transcending religious and cultural contexts. This article contributes to the discourse on leadership, strategy, and crisis management, underscoring the enduring relevance of Muhammad's leadership principles which have proven effective in saving the situation.

Exploring global practices in providing small and medium enterprises access to sustainable finance solutions

This study investigates the role of sustainable finance in enhancing the growth and sustainability of Small and Medium Enterprises (SMEs), focusing on the integration of environmental, social, and governance (ESG) principles. The main objectives were to map the current landscape of sustainable finance for SMEs, identify barriers to access, evaluate the impact of sustainable finance on SME growth, explore the role of digitalization, and provide policy recommendations. Through a mixed-methods approach combining literature review, case studies, and empirical analysis, the study offers a comprehensive overview of the global practices in sustainable finance for SMEs. Key findings reveal that while there is a growing availability of sustainable financial instruments, SMEs face significant challenges in accessing these resources due to a lack of awareness, stringent eligibility criteria, and complex application processes. The study also highlights the positive impact of sustainable finance on SME growth and sustainability, with digitalization playing a crucial role in enhancing access to finance. However, the effectiveness of these financial instruments and digital platforms varies significantly across different regions and sectors. Based on the findings, the study recommends that policymakers and financial institutions implement more inclusive policies and develop financial products that cater to the unique needs of SMEs. It also calls for increased efforts in capacity building to raise awareness among SMEs about the benefits of sustainable finance. Future research should focus on the long-term effects of sustainable finance on SME competitiveness and resilience, and the potential of public-private partnerships in facilitating access to sustainable finance.

Analysis of the Principles of Good University Governance at the University of Indonesia as a State University with Legal Entity (PTN-BH) in 2014-2019

To achieve its vision and mission, the University of Indonesia (UI) has undertaken a series of improvements across various domains, encompassing governance. However, despite these endeavours, the enhancements in UI's governance do not seem to correlate with its performance achievements as documented in the annual reports. This study aims to analyse the application of the principles of good university governance at UI, a state university, from 2014 to 2019. The findings reveal that the execution of good university governance at UI, operating as a State University with a Legal Entity from 2014 to 2019, has not been optimised. The study delineated obstacles to good university governance at UI, encompassing the lack of involvement in decision-making processes beyond the rectorate, particularly in academic management; absence of transparent selection criteria for critical leadership roles such as UI Rectors and Deans; disparities in workload distribution across UI units; and outdated information on the ui.ac.id website. Recommendations stemming from the study advocate for enhancements in regulatory frameworks, refinement of staff performance assessment mechanisms, dissemination of financial regulations, and exploration of avenues to augment non-tuition revenue streams. These proposed measures aim to mitigate the identified challenges and to implement sound university governance principles more effectively at UI

The Effect of The Application of Good Corporate Governance (GCG) Principles on Job Satisfaction and Employee Performance

The application of good corporate governance principles is vital in all companies, particularly in the banking sector. This study examines the impact of good corporate governance on job satisfaction and employee performance, as well as the relationship between job satisfaction and employee performance. Public trust in state-owned banks is higher than that of private banks, making BNI an interesting case study. BNI, as the only state-owned bank operating globally, is known for its good corporate governance practices, as evidenced by its high CGPI score. This study focuses on permanent employees of BNI's Regional Office 15 in East Jatinegara, Jakarta. A survey was conducted among 125 respondents using SEM PLS. The results show that good corporate governance principles positively affect job satisfaction and employee performance, but job satisfaction does not directly impact employee performance. This research contributes to managerial implications, suggesting that companies can redesign positions, promotions, salaries, or rewards to enhance job satisfaction among employees. The findings of this study are expected to provide insights for managers to improve employee satisfaction and performance by implementing good corporate governance practices.

A Comparative Study of Deep-Learning Autoencoders (DLAEs) for Vibration Anomaly Detection in Manufacturing Equipment

Speed reducers (SR) and electric motors are crucial in modern manufacturing, especially within adhesive coating equipment. The electric motor mainly transforms electrical power into mechanical force to propel most machinery. Conversely, speed reducers are vital elements that control the speed and torque of rotating machinery, ensuring optimal performance and efficiency. Interestingly, variations in chamber temperatures of adhesive coating machines and the use of specific adhesives can lead to defects in chains and jigs, causing possible breakdowns in the speed reducer and its surrounding components. This study introduces novel deep-learning autoencoder models to enhance production efficiency by presenting a comparative assessment for anomaly detection that would enable precise and predictive insights by modeling complex temporal relationships in the vibration data. The data acquisition framework facilitated adherence to data governance principles by maintaining data quality and consistency, data storage and processing operations, and aligning with data management standards. The study here would capture the attention of practitioners involved in data-centric processes, industrial engineering, and advanced manufacturing techniques.

The Impact of the Magna Carta on Medieval English Politics

This research examines the influence of the Magna Carta during the reign of King John, a time characterized by his authoritarian governance and fiscal requisitions. The study examines the impact of the Magna Carta, which arose from the rebellion of the barons against King John. It altered the balance of power by questioning the notion of the divine right of kings and laying the groundwork for the establishment of parliamentary systems and legal changes. The study emphasizes the Magna Cartas significance as not just a legal instrument, but also as a catalyst for change in English political history. The Magna Carta championed individual liberties and laid the foundation for a system of government where representatives are elected and the principle of legal governance is upheld. The research finishes by highlighting the modern relevance of the Magna Carta in government and education, and advocating for a more profound comprehension of its historical and present importance.

Riau Province’s land and forest governance: The tendency of budget information transparency among Riau’s 12 regencies

Information transparency is a basic principle of good governance that few studies in the literature have thoroughly examined. Riau Province in particular has a high record of land and forest conflicts that needs urgent response, yet environmental policies have mostly been scrutinized for its resource extraction and regulation aspects, not their aspect of information transparency. Low proactive disclosure of information from local governments is a recurring issue in Riau Province, so FITRA Riau initiated the Public Information Openness Index (IKIP) to cover the Riau Province and 12 regencies/cities. To address this research gap of governmental public bodies’ information transparency, this study conducted the novel substantive approach critical review to see the extent of local government’s transparency regarding their budgeting for one of Riau’s most prevalent issues, namely land and forest governance (TKHL). From March to September 2019, this study used a triangulation of data collected from information access tests, IKIP evaluation, and focus group discussion involving the Riau Information Commission, the Information Management and Documentation Officers (PPID) of the 12 regencies, and the Governor of Riau Province. After analyzing the four aspects of regulation, institution, budget, and TKHL information, results determined that the most open region in Riau Province is Indragiri Hulu, and the least open region is Kuantan Singingi. Information transparency is still limited in procedural terms, in which all regions have more or less fulfilled the administrative regulation demands but the substance of the public information across all aspects is too generic to truly inform the public of the regions’ TKHL.

Juridical Analysis Of The Commissioners Of Limited Liability Companies Who Exercise The Authority Of The Executive Board Of Directors In Terms Of Good Corporate Governance Aspects

This study aims to explain the legal basis and functions of organs in a Limited Liability Company (PT) and identify the legal impact on PT organs that carry out the duties and authorities of other organs. In the global context, Good Corporate Governance (GCG) is the key to the company's success for long-term growth and business continuity. The economic crisis in Asia and Latin America in 1999 was attributed to the failure of GCG implementation. The research method used is normative juridical with an analytical descriptive approach. The two main approaches used are the statutory approach and the conceptual approach. The results showed that the executive actions of Commissioners in PT require approval from the Board of Directors with a power of attorney, maintain legality and implement the principles of Good Corporate Governance. The Bank as a third party also requests a power of attorney to ensure the legality of the applicant who is a Commissioner. Research reveals the legal basis for the establishment of a PT stipulated in Articles 36-56 of the Criminal Code and Articles 1233-1652 of the Civil Code. This research contributes to understanding the importance of GCG implementation and the legality of the Commissioners' executive actions in maintaining the integrity of the company. The results of the research are expected to be the basis for companies and regulators in improving good corporate governance.

Tantangan Penerapan Inovasi Budaya Organisasi dalam Pengelolaan Alokasi Dana Nagari/Desa dalam Rangka Mewujudkan Pemerintahan Desa yang Baik

Nagari/village funds are an important instrument that can be used to improve community welfare, reduce regional disparities, and strengthen local economic empowerment. However, in practice, the implementation of organizational culture innovation in nagari/village government structures is often faced with a number of complex challenges. Nagari/village leaders and officials who have skills in organizational culture innovation can help in developing a better nagari/village fund management system, such as using information technology in reporting and monitoring the use of funds, or applying the principles of good governance in decision making. This research uses a qualitative approach with descriptive methods to explore the challenges associated with implementing organizational culture innovation in managing nagari/village funds in order to achieve the goals of good nagari/village governance. A qualitative approach provides an appropriate framework for understanding in depth the cultural context of organizations at the nagari/village level and the dynamics involved in dealing with change. The research results show that the role of nagari/village leaders and officials is very crucial in encouraging the adoption and implementation of organizational culture innovations in managing nagari/village funds. Resistance to change is still a significant challenge faced by many nagari/villages in implementing organizational culture innovation. Factors such as discomfort with the status quo and lack of understanding of the benefits of innovation can hinder efforts to improve the effectiveness of nagari/village fund management.

IMPLEMENTASI GOOD CORPORATE GOVERNANCE TERHADAP KINERJA KARYAWAN DI PT BPRS TULEN AMANAH

This study aims to find out how good corporate governance is implemented at PT BPRS Tulen Amanah, Masabagik District, and how good corporate governance plays a role in employee performance. The type of research used is descriptive qualitative research, with data collection techniques used, namely observation, documentation, and interviews. The data obtained is then analyzed using an inductive method that starts with a mindset then draws conclusions from specific data and then collects it to a more general level. The results of this study indicate that the implementation of the principles of good corporate governance, namely transparency, accountability, responsibility, fairness and independence have been implemented and juxtaposed with sharia principles. The implementation of good corporate governance has a composite title. "good" with a rating of 2 which includes the operational performance of PT. BPRS Tulen Amanah which implements GCG as a whole and in accordance with existing regulations. and the role of implementing good corporate governance on employee performance has been realized and felt in terms of several criteria, namely the quantity of work, quality of work, knowledge, creativity, cooperation, dependability, and initiative by employees and stakeholders at PT BPRS Tulen Amanah. Keywords: Good Corporate Governance , Employee Performance

The Cultural Aspects of Organizations and Their Influence on the Performance of Financial Management in the Regional Government of Jambi Province

The Performance of Regional Financial Management (PKD) holds a crucial objective to ensure the achievement of sustainable development and community welfare through a commitment to the principles of good governance as mandated by Law Number 1 of 2022. The aim of this research is to analyze the extent of the influence of organizational culture on the performance of regional financial management in the Provincial Government of Jambi. A quantitative research method was employed, involving a sample of 445 respondents out of a population of 713 individuals. Data analysis utilized the Structural Equation Model (SEM) LISREL from the collected data through research questionnaires. The results of the study indicate that the path analysis measurement and t-value produce a significant influence of organizational culture on the performance of regional financial management. The dimensions of organizational culture that have the most significant influence are stability and attention to detail. The research findings yield a Standard Financial Performance Transformation Model as a novel discovery, where the performance of regional financial management is determined by the dimensions of stability and attention to detail.