LEGAL UNCERTAINTY IN THE BUSINESS JUDGMENT RULE DOCTRINE FOR STATE -OWNED ENTERPRISE DIRECTORS IN FACING CORRUPTION LIABILITY
- Authors
-
-
Muhamad Rio Diva Nagara
President UniversityAuthor -
Yesi Aprilia
President UniversityAuthor -
Dinda Areta Arkananta
President UniversityAuthor
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- Keywords:
- Business Judgment Rule, State -Owned Enterprises, Board of Directors, Legal Certainty, State Financial Loss, Corruption
- Abstract
- Boards of Directors of State-Owned Enterprises (SOEs) face legal uncertainty due to the conflict between the protection afforded by the Business Judgment Rule (BJR) under Article 97(5) of the Company Law and the state financial loss regime under the Anti-Corruption Law. This study aims to analyse the extent to which the BJR protects SOE directors from liability for business decisions that result in alleged state financial losses and to examine the legal boundary between protected business decisions and acts constituting corruption. This research employs a normative legal research method using statutory, conceptual, comparative, and case study approaches, with particular reference to Decision Number 68/Pid.Sus-TPK/2025/PN Jkt Pst. The findings indicate that the BJR provisions under the Company Law do not provide sufficiently clear standards for their application, leading to inconsistent interpretations in judicial practice. Furthermore, the normative conflict between the Company Law, the State-Owned Enterprises Law, and the Anti-Corruption Law creates a risk of criminalisation of SOE directors. Therefore, regulatory harmonisation and clearer legal parameters are required to ensure the consistent application of the BJR and to provide greater legal certainty for SOE directors.
- References
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Indonesia. Law on Eradication of Corruption. Law No. 31 of 1999, LN Year 1999 No. 140, TLN No. 3874, as amended by Law No. 20 of 2001.
Indonesia. Law on Limited Liability Companies. Law No. 40 of 2007, LN Year 2007 No. 106, TLN No. 4756.
Indonesia. Law on State-Owned Enterprises. Law No. 19 of 2003, as last amended by Law No. 16 of 2025, LN Year 2025 No. 162, TLN No. 7142.
Constitutional Court of the Republic of Indonesia. Decision Number 25/PUU-XIV/2016.
Corruption Court at the Central Jakarta District Court. Decision Number 68/Pid.Sus-TPK/2025/PN Jkt Pst, decided November 20, 2025.
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- 2026-07-28
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