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All Journal Journal of Sustainable Development and Regulatory Issues Justice Dialectical
Amir Firmansyah
Unknown Affiliation
Environmental Science Law, Crime, Criminology & Criminal Justice Public Health

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Strengthening the Business Judgment Rule in Indonesia: Lessons from Malaysia Jatna, R. Narendra; Amir Firmansyah; Hasbullah; Muhammad Umar Bin Abdul Razak
Journal of Sustainable Development and Regulatory Issues (JSDERI) Vol. 3 No. 3 (2025): Journal of Sustainable Development and Regulatory Issues (JSDERI)
Publisher : Lembaga Contrarius Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.53955/jsderi.v3i3.157

Abstract

The Business Judgment Rule (BJR) serves as a fundamental doctrine in corporate law, protecting company directors from personal liability when they act in good faith, exercise due diligence, and avoid conflicts of interest. However its recognized importance in safeguarding directors’ discretion, Indonesian lawmakers and courts have not fully developed its application, as shown by limited statutory codification, inconsistent judicial interpretation, and insufficient empirical analysis, thereby hindering coherent corporate governance and generating uncertainty in directors’ decision-making authority. This study analyzes the implementation of the BJR in Indonesia through a comparative lens with Malaysia. Using a normative and comparative legal approach, the research reveals that Indonesia’s current framework lacks clarity, comprehensive codification, and consistent judicial interpretation particularly in the private sector. The research findings demonstrate that, first, the implementation of the Business Judgment Rule (BJR) in Indonesia remains constrained by procedural ambiguity, which undermines consistent and predictable enforcement. Second, the allocation of the burden of proof lacks clarity, thereby weakening both the protection afforded to directors and the reliability of judicial determinations. Third, institutional support for the practical application of the BJR is insufficient, limiting its capacity to promote effective corporate governance. In response, the study recommends comprehensive reform of the Indonesian Company Law, the incorporation of safe-harbor provisions, the enhancement of judicial competence through specialized training, and the reinforcement of corporate governance mechanisms to improve legal certainty and strengthen directors’ accountability. Advancing the BJR framework is essential to encourage innovation, reduce legal risks, and enhance the competitiveness and resilience of Indonesia’s corporate sector.
The Politics of Prosecutorial Independence in Anti-Corruption Policy Febridiansyah, Febridiansyah; Sugeng Riyanto; Rahimah Embong; Amir Firmansyah
Jurnal Justice Dialectical Vol 3 No 1 (2025): Journal of Justice Dialectical
Publisher : Sekolah Tinggi Ilmu Hukum Adhyaksa

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.70720/jjd.v3i1.68

Abstract

The independence of the Attorney General’s Office in Indonesia remains weak due to persistent political influence, as the Attorney General is appointed by the President. Despite reform initiatives since 2000, including the establishment of reform teams, these efforts have yet to create a professional and independent institution, particularly in the prosecution of corruption. This study analyzes the institutional position of the Prosecutor’s Office and propose new legal policy directions to enhance its independence in combating corruption. Using a normative legal method with statutory and comparative approaches, the research examines prosecutorial systems in various countries to identify best practices. The findings reveal that prosecutors' law permits executive intervention because of the absence of clear constitutional provisions defining the Attorney General’s Office. Its ambiguous status between the executive and judiciary weakens professionalism and accountability. Therefore, a constitutional amendment is necessary to establish the Prosecutor’s Office as an independent state institution, with explicit regulations on its authority, accountability, appointment and dismissal procedures, and qualifications and tenure of the Attorney General. Strengthening the Prosecutor’s role as dominus litis within an integrated justice system also requires enhancing transparency, public participation, reforming internal legal culture, and adopting international best practices.
Co-Authors Febridiansyah, Febridiansyah Hasbullah Jatna, R. Narendra Muhammad Umar Bin Abdul Razak Rahimah Embong Sugeng Riyanto