Muhammad Umar Bin Abdul Razak
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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.
Ecocracy and Rights of Nature: Constitutional Reconstruction of Indonesian Energy Transition Mining Wahyu Nugroho; Muhammad Umar bin Abdul Razak
Siyasah Dusturiyah: State Law Review Vol. 1 No. 6 (2026): Siyasah Dusturiyah: State Law Review
Publisher : Yayasan Cahaya Generasi Positif

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.65101/f28b8q02

Abstract

The global energy transition paradoxically has triggered massive nickel mining operations, severely threatening critical ecological vulnerabilities of small islands in Indonesia. This study aims to reconstruct the conventional anthropocentric Green Constitution paradigm by systematically integrating the Ecocracy doctrine and Rights of Nature. Utilizing a normative-juridical method with conceptual, statutory, and case approaches, this research analyzes various contemporary constitutional shifts. The study findings demonstrate that unregulated nickel extraction fundamentally destroys the ecological carrying capacity of vulnerable archipelagos. Crucially, Constitutional Court Decision Number 35/PUU-XXI/2023 functions as a monumental judicial resolution that firmly and implicitly recognizes nature as an independent legal subject holding absolute protection rights. In conclusion, this historic ruling establishes an erga omnes constitutional mandate for the state to immediately halt all destructive extractive mining operations within small island territories, effectively transforming Indonesia’s environmental law landscape from an exploitative framework into a highly progressive, strongly binding, and sovereign environmental ecocracy system.