gcg in indonesia
Cost Management
Topic: Good Corporate Governance
By:
Tania Ananda Mahdani (023113004)
Pradypto Utomo (023111217)
Trado Vansa Addraga (023113003)
1. How is the implementation of good corporate governance on companies in Indonesia? Answer: Recent experience indicate that it isn`t sufficient for management just to rely on how efficient is the process of managing. It needs a new instrument, Good Cooperate Governance (GCG), to prove that the management is going well. This concept emphasize on two important things, that is: first, the right of shareholder to be provided of right and just on time information, and second, the obligation of company to disclose accurately, just on time, and transparently all information of company`s performance, shareholders, and stakeholders. Various studies by national and international researchers proved the lack of understanding the importance and strategic implication of applying GCG principles by Indonesian entrepreneur. Besides, organization culture also influencing GCG application in Indonesia. In 1997, the East Asian Financial Crisis severely affected the economies of Thailand, Indonesia, South Korea, Malaysia, and the Philippines through the exit of foreign capital after property assets collapsed. The lack of corporate governance mechanisms in these countries highlighted the weaknesses of the institutions in their economies. Indonesia was one of the countries that experienced this crisis. In Indonesia, the after-effect of the crisis itself affected the economic development of the country. The evaluation made by Asian Development Bank (ADB) shows some factors that give great contributions to the crisis that happened in Indonesia. First is the high concentration of company’s ownerships. Second, the ineffective control function from board of directors, third; inefficient and lack in transparency of the procedures on mergers and takeovers. Fourth, highly independent on
Topic: Good Corporate Governance
By:
Tania Ananda Mahdani (023113004)
Pradypto Utomo (023111217)
Trado Vansa Addraga (023113003)
1. How is the implementation of good corporate governance on companies in Indonesia? Answer: Recent experience indicate that it isn`t sufficient for management just to rely on how efficient is the process of managing. It needs a new instrument, Good Cooperate Governance (GCG), to prove that the management is going well. This concept emphasize on two important things, that is: first, the right of shareholder to be provided of right and just on time information, and second, the obligation of company to disclose accurately, just on time, and transparently all information of company`s performance, shareholders, and stakeholders. Various studies by national and international researchers proved the lack of understanding the importance and strategic implication of applying GCG principles by Indonesian entrepreneur. Besides, organization culture also influencing GCG application in Indonesia. In 1997, the East Asian Financial Crisis severely affected the economies of Thailand, Indonesia, South Korea, Malaysia, and the Philippines through the exit of foreign capital after property assets collapsed. The lack of corporate governance mechanisms in these countries highlighted the weaknesses of the institutions in their economies. Indonesia was one of the countries that experienced this crisis. In Indonesia, the after-effect of the crisis itself affected the economic development of the country. The evaluation made by Asian Development Bank (ADB) shows some factors that give great contributions to the crisis that happened in Indonesia. First is the high concentration of company’s ownerships. Second, the ineffective control function from board of directors, third; inefficient and lack in transparency of the procedures on mergers and takeovers. Fourth, highly independent on
References: http://www.bumn.go.id/16433/publikasi/berita/implementasi-gcg-di-bumn-masih-hadapi-banyak-kendala/ http://www.lmfeui.com/data/Peraturan%20Menteri%20BUMN%20No.%20PER-01-MBU-2011.pdf Journal Ilmiah Mahasiswa Universitas Surabaya Vol.2 No.1 (2013) Good Corporate Governance dan Penerapannya di Indonesia, by Thomas S. Kaihatu Staf Pengajar Fakultas Ekonomi, Universitas Kristen Petra Surabaya Corporate Governance Perception Index