1. SEMINAR
ISSUES AND CHALLENGES
IN CORPORATE GOVERNANCE
INDONESIA
CORPORATE GOVERNANCE
AFTER ASIAN FINANCIAL
CRISIS
Presented by:
R A J A A B U M A N S H U R M AT R I D I
810083
SHAHRIL BUDIMAN
810089
J U N R I A N A
810058
COLGIS MPM ROOM
SUNDAY, 16 DECEMBER 2012

2. CONTENTS
.Corporate governance pillar
. Indonesia Corporate
Governance Timeline
.The causes of financial crisis In
INDONESIA
Indonesia CORPORATE GOVERNANCE
AFTER ASIAN FINANCIAL
.Asian corporate governance CRISIS
association towards Indonesia
CG Presented by:
RAJA ABUMANSHUR MATRIDI
810083
SHAHRIL BUDIMAN
810089
JUNRIANA
810058

3. OF
INTRODUCTION
Understanding Corporate Governance

4. OF
Independency
Responsibility Transparency
Kaen,Shaw, 2003 OECD

5. INDONESIA CORPORATE GOVERNANCE
TIMELINE
1996, 199716 Bank 2004 Bank
Indonesia had Closed, followed by Dagang Bali and 2005 Bank
more than Bank Aspac were Global closed
38 banks in 1999 liquidation
200 Banks

6. INDONESIA CORPORATE GOVERNANCE
Factors causing the crisis in Indonesia:
First, concentration of ownership
Second, ineffective oversight
Third, lack of transparency in the
implementation of corporate mergers and
acquisitions
Fourth, overly high dependency on
external funding
Fifth, inadequate supervision by the
creditors
Asian Development Bank (Daniri, 2006)

7. Three activities of Indonesia government in
implementing CG:
Establish a national policy
• 2004: Sectoral code, audit commitee code, commissioner independent code
• 2006: to create a check and balance situation, enforcement of transparency
and accountability, and realization of social responsibility for the company's
survival
Enhance the regulatory framework
• 1998, Indonesia Bank act
• 1999, anti corruption act
• 1999, competition act
• 2003, SOEs act
Build a private sector initiative
Daniri (2006), Rifai (2009)

9. Assessment of development
Corporate Governance In Indonesia

10. Assessment of development
Corporate Governance In Indonesia

11. Commitment
Transparency
Accountability
Responsibility
Independence
Fairness
Competence
Mission
Leadership
Collaboration

12. What is the results of
Indonesia’s Code of good corporate governance

13. Reference
• Daniel. (2003). Corporate Governance in Indonesian Listed Companies – A Problem of LegalTransplant, 15
Bond Law Review.
• Hanazaki, Masaharu., Liu, Qun. (2003, July). The Asian Crisis and Corporate Governance:Ownership
Structure, Debt Financing, and Corporate Diversification. Center for Economic Institutions Working Paper
Series Number 2003-18.
• Kaihatu, Thomas S. (2006, March). Good Corporate Governance and their Application in Indonesia.
Journal Management and Entrepreneurship, Volume 8, Number 1, pp. 1-9.
• Kamal, Miko. (2011) Concept of Corporate Governance in Indonesia: Study of Corporate Governance
Code. Journal Management Technology, Volume 10, Number 2.
• Kurniawan, Dudi M., and Indriantoro, Nur. (2000). Corporate Governance in Indonesia. From The Second
Asian Roundtable on Corporate Governance: The Role of Disclosure in Strengthening Corporate.
Governance and Accountability. Hongkong, China.
• Lemmon, Michael., and Lins, Karl. (2001, April) Ownership Structure, Corporate Governance, and Firm
Value: Evidence from the East Asian Financial Crisis. William Davidson Working Paper Number 393.
• Lukviarman, N. (2004). Implementation Constraints of Good Corporate Governance in Indonesia.
• Study Team. (2010). Study about Guidance of Good Corporate Governance in Countries’ Member of
ACMF. Jakarta: Ministry of Finance of Republic Indonesia, National Agency of Capital Market, and
Financial Institutions.
• Tabalujan. (2002). Why Indonesian Corporate Governance Failed – Conjectures Concerning Legal
Culture. 15 Columbia Journal of Asian Law

14. THANKS FOR YOUR
AT T E N T I O N