Valuation of the Loss of State Owned Enterprise as the State Losses Based on the Object of Economic Criminal Accountability Perspective

Abstract

This study aim to the argument for the absorption of SOE losses as the state losses based on the perspective of economic criminal accountability and the form of absorption of SOE losses as the state losses. A state-owned enterprise (SOE) refers to a business enterprise that is owned and controlled by the government, whether wholly or partially. It is a public company where the government is also the owner of the capital from separated state assets. In the practice, SOE business activities tend to be a tool of corruption due to the political intervention toward the SOE. This means that SOEs can lose money due to assignments and government intervention. Ironically, SOE losses that have not been included as the state losses have become a loophole for corruption. This doctrinal study applied primary and secondary legal materials with deductive analysis. The results of the study show that the argument for the valuation of SOE losses as the state losses is due to: a. there is a policy of SOE that is detrimental to the state; b. SOE assets including the state assets, c. The state intervention on SOE business activities.