Relevance of Good Corporate Governance Towards the Principle of Business Judgement Rule for State-owned Enterprises’ Corruption Cases: A Legal Perspective

Leonardi Ryan Andika (Department of Accounting, Faculty of Economics and Business, Universitas Indonesia)
Nethania Vanida (Faculty of Law, Universitas Indonesia)
Jocelyn Aprilia (Faculty of Law, Universitas Indonesia)
Monica Gracia Irjanto (Faculty of Law, Universitas Indonesia)

Asia Pacific Fraud Journal
Vol 6, No 1: Volume 6, No. 1st Edition (January-June 2021)

Business judgement rule is often used as one of the principles to determine whether a corporate actor is evidently guilty in various corruption cases. Thus, this study aims to explain the relevance of corporate governance implementation as an additional objective measurement towards the business judgement rule principle in state-owned enterprises corruption cases. Through the juridical-normative approach and qualitative method analysis, it is found that in the middle of ambiguous positions of state-owned corporations in Indonesia, corporate governance must be taken into account in determining the court ruling especially in many corruption cases as a tool to minimize the legal uncertainty. This study also found that the corporate governance standard is able to convince the public in various financial decisions as a parallel example.