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Rizki Ramadani
Mahasiswa Program Studi Agribisnis Fakultas Pertanian Universitas Sumatera
Arts Humanities Computer Science & IT Earth & Planetary Sciences Economics, Econometrics & Finance Education Environmental Science Health Professions Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice Materials Science & Nanotechnology Physics Public Health Social Sciences Other

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Rethinking Indonesian Single-Member Companies: Lessons from the European Union for Sustainable Business Governance Abbas, Ilham; Ramadani, Rizki; Aswari, Aan; Yaqien Makkarateng, Ma'adul
Jambe Law Journal Vol. 9 No. 1 (2026): 2026
Publisher : Faculty of Law, Jambi University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.22437/w3f9r267

Abstract

The introduction of the Indonesian Perseroan Perseorangan (Single-Member Company/SMC) under the Job Creation Law is intended to improve the ease of doing business. Allowing a company to be established and managed by a single individual, the SMC signifies a transformation from traditional corporate law principles. While existing studies emphasize economic deregulation and business formalization, limited attention has been paid to whether this simplified corporate model is compatible with the emerging paradigm of Sustainable Corporate Governance (SCG). This study addresses that gap by evaluating the Indonesian SMC framework through an SCG perspective and comparing it with the European Union’s regulatory approach. Its principal contribution is the development of an SCG-based comparative evaluative framework for assessing simplified corporate entities, demonstrating that the compatibility of Single-Member Company regimes should be measured not only by ease of doing business but also by their capacity to ensure long-term governance accountability, stakeholder protection, and environmental responsibility. Employing normative legal research and a comparative legal approach, this study examines Indonesia's regulatory framework in comparison with the European Union's SMC regime using four dimensions of SCG: governance accountability, transparency and sustainability disclosure, stakeholder and creditor protection, and corporate environmental responsibility. The findings reveal that although Indonesia's regulatory model significantly improves business accessibility and administrative efficiency, it provides limited institutional safeguards to support sustainable governance. By contrast, the European Union adopts a more balanced regulatory approach that combines business flexibility with governance safeguards. Therefore, the study proposes a proportionate governance model capable of reconciling business simplification with sustainable corporate governance.
Co-Authors Abbas, Ilham Amin, Fadlullah Amiruddin Amiruddin Andi Azhar Arifin, Muhammad Ya'rif Arizqi Ihsan Pratama Arsy, Muhammad Artha Mahindra Diputera Asriati Asriati, Asriati Aswari, Aan Bima, Muhammad Rinaldi Busthami, Dachran Deasy, Deasy Yuni Pratiwi Eka Saputra. B, Imran Hamzah, Yuli Adha Indri Handayani, Indri Mamonto, Moch Andry Wikra Wardhana Mamonto, Moch. Andri Wikra Wardhana Mangerengi, Arianty Anggraeni Muhammad Ilyas Muhammad Nur Rahman, Ali Razak, Askari Roni Sinaga Sabrina, Purwanti Lelly Setiadi, Ade Suryani, St. Wahida Wahida Wardhana Mamonto, Moch Andry Wikra Yahya Darmawan Yaqien Makkarateng, Ma'adul