<![CDATA[This study examines the limitations of the application of the Business Judgment Rule in the Karen Agustiawan case concerning the acquisition of the Participating Interest in the Basker Manta Gummy (BMG) Block in Australia by PT Pertamina (Persero). It aims to analyze the concept of state losses from the perspectives of corporate law and corruption law. This research employs a normative legal method using statutory and conceptual approaches. The findings reveal differing interpretations between law enforcement authorities and the Supreme Court in assessing business decisions made by directors of state-owned enterprises. From a corporate law perspective, the Business Judgment Rule provides legal protection for directors who act in good faith, exercise due care, and avoid conflicts of interest. However, losses arising from business decisions in state-owned enterprises are often treated as state losses, creating the potential for criminalization of directors. In its ruling on the Karen Agustiawan case, the Supreme Court emphasized that not all losses suffered by state-owned enterprises constitute state losses but may represent ordinary business risks. The study concludes that the application of the Business Judgment Rule in Indonesia still requires clearer legal parameters to ensure legal certainty and adequate protection for directors in exercising their decision-making authority.]]>
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