2. “
1997
Bad Corporate
Governance
is one reason the Political-ecomonical crisis
began in
And also
”
Background
the needs of good corporate governance pertaining to
principle-agency theory
Market
crash 1929
Indonesia
East Asia
6. YEAR LAW
1998 the country is free from corruption, collusion, and nepotism
1999 eradication of corruption
2000 GCG development in the company
Implementation of the policy of good corporate
governance in all BUMN
Implementation GCG and instruction of formation
guidelines for the Establishment of Applied Corporate
Governance Team
Letter of Commissioner PT Pos Indonesia (Persero) Number
520/S-KU/2000 Establishment of
audit Koimplementimite subject.
2001 eradication of corruption (Undang-Undang No. 20 Tahun
2001)
Moral Movement BTP Pos Indonesia (Clean, Transparent and
Professional).(Decision of the Board of Directors of
PT Pos Indonesia (Persero) No.81/Dirut/1201
2002 Corporate Governance Practices in SOEs (State Owned
Enterprises Minister No.KEP-117/M-MBU/2002)
regarding intensification and Acceleration
of KKN (Circular Letter of Minister ofAdministrative
Reform Republic of Indonesia. 37a/M-PAN/2002)
8. Definition by OECD
organization for economic co-operation and development
Corporate governance is the system by which
business cooperation are directed and
controlled. The corporate governance structure
specifies the distribution of the rights and
responsibilities among different participants in
the cooperation such as the board, managers,
shareholders and other stakeholders and spell out
the rules and procedures for making decisions on
corporate affairs. By doing this, it also provides
the structure through which company objectives
are set and the means of attaining those objectives
9. Definition by FCGI
Corporate governance can therefore be defined
as: a set of rules that define the relationship
between shareholders, managers, creditors, the
government, employees and other internal and
external stakeholders in respect to their rights
and responsibilities, or the system by which
companies are directed and controlled. (taken
from Cadbury Committee of United Kingdom)
The objective of corporate governance is to create
added value to the stakeholders.
Definition by fgci
Forum for corporate governance in indonesia
10. Definition by iicg
indonesia institute for corporate governance
Corporate governance is defined by IICG
(Indonesian Institute of Corporate Governance) as
the processes and structures that are applied in
running the company, with the main purpose of
increasing shareholder value over the long
term and with due regard to the interests of other
stakeholders. Corporate governance also requires
the device structure to achieve the above
objectives and monitoring performance.
(Www.iicg.org)
11. Definition by KNKG
komite nasional kebijakan governance
Good corporate governance (GCG) according to
KNKG is one of the market economic system pilar.
Corporate governance is closely related to
trust both to the companies that implement it and
to the business climate in the country. The
implementation of GCG encourage the
creation of fair competition and a conducive
business climate. Therefore, the implementation
of good corporate governance by companies in
Indonesia is very important to support the
continuous of economic growth and stability.
12. Definition by UNDP
united nations development programme
According to United Nations Development
Program (UNDP) document, governance is the use
of political economic and
administrative authority to manage the affairs
of the country at all levels. Governance includes
all the mechanism, process and institutions where
the citizens and community groups to
express their interests using legal
rights, obligations and bridge those
differences between them.
13. Definition by BPKP
badan pengawasan keuangan dan pembangunan
Good corporate governance is a system
of control and regulation of companies that can be
seen from the mechanism of the
relationship between the various parties who take
care of the company, as well as in terms of
"values" of the management
mechanisms contained itself. GCG BPKP team
defined GCG from the soft definition which is
easier to understand, even the layman, which is
Commitment, terms of play, and
implementation of healthy and ethical
business practices
14. Definition by unescap
united nations economic and social commision for Asia and Pacific
Good governance is an indeterminate term used
in development literature to describe how public
institutions conduct public affairs and manage
public resources in order to guarantee the
realization of human
rights. governance describes the process of
decision-making and the process by which
decisions are implemented or not implemented.
The term governance can apply to
corporate, international, national, local
governance or to the interactions between other
17. FCGI
…the rights of shareholders
…equitable treatment of shareholders
…the role of stakeholders should be recognized as established by law
and active co-operation between corporations and stakeholders in
creating wealth, jobs and financially sound enterprises
…timely and accurate disclosure and transparency
…the responsibilities of the board in the management, the supervision
of the management and the accountability to the company and
shareholders.
19. The country and tools to create laws that
support a healthy business
climate, efficient and transparent, implement
legislation and law enforcement consistently
(consistent law enforcement)
Business world as a market participant to
implement good corporate governances a basic
guideline implementation efforts
The public as the users of products and services
of the business world and affected
parties of the existence of the
company, showing concern and social control in
an objective and responsible manner
KNKG
24. “One of the efforts to improve the performance of a company / organization is to
implement Good Corporate Governance (GCG). Implementation of Good
Corporate Governance (GCG) is a guideline for the commissioners and
directors in making decisions and execute actions based on high moral,
compliance with laws and regulations applicable as well as awareness of
corporate social responsibility of interested parties (stakeholders)
consistently”