Can business judgment rule be a justification reason in corruption cases in state-owned enterprises in the form of limited liability companies?

Abstract

This study aims to obtain a scientific, legal construction regarding the position of the business judgment rule in cases of corruption in a State-Owned Enterprise in the form of a Limited Liability Company. This research is normative legal and uses qualitative methods to produce descriptive data. The documents used are secondary data in the form of primary legal materials and secondary legal materials published in the public domain. The findings of this study conclude that efforts are needed to harmonize the business judgment rule doctrine with the Indonesian legal system and criminal law. The Government of Indonesia and the Legislative Body to make a derivative of Law Number 40 of 2007 concerning Limited Liability Companies or Undang-Undang Nomor 40 Tahun 2007 tentang Perseroan Terbatas (UUPT No.40/2007) which regulates more clearly and in detail related to the business judgment rule and its derivatives so that there is a sense of justice and legal certainty and legal protection for stakeholders, law enforcers and directors. Thus, the Directors of State-Owned Enterprise s(SOE) or Badan Usaha Milik Negara Pesero (BUMN) in running the company have accountability rules related to business decisions made to optimize the company's performance achievements, which in turn can have a positive impact on the Indonesian economy.

The Urgency of Preventive Supervision to Prevent Corruption in Indonesian State-Owned Enterprises

“…With the governance process through the internal control system (ICP), the Board of Commissioners is expected to be able to support the implementation of the duties of the Board of Directors of Indonesian SOEs related to financial management and budget execution in an orderly manner, complying with laws and regulations, efficient, effective, transparent and responsible with due regard for fairness and decency. According to Affandhi (2015) in Wibisana (2022), that the Directors of Indonesian SOEs in terms of making decisions to run the wheels of the company with the aim of gaining profits, so that the decision contains business implications and legal implications. Paim & Flexa (2011) stated that the governance process model is aligned with business strategy, as well as better business process management and organizational structure to improve the quality of work life in the work environment (Hamid & Wibisana, 2022) including in Indonesian SOEs.…”

Implications of Limited Liability Company After Being Declared Bankrupt

“…A legal entity is an entity other than humans who in this case can also act in law and have rights and obligations so that they can have legal interests towards other people or other entities (Sentosa, 2007). The legal entity referred to in this case is a Limited Liability Company which as a legal subject can perform legal actions (Wibisana, 2022).…”