LEGAL RISKS TOWARDS THE INDONESIAN STATE OWNED ENTERPRISE (SOE)
LEGAL RISKS TOWARDS THE INDONESIAN STATE OWNED ENTERPRISE (SOE)

Summary/Abstract: This research is focused on legal aspects, especially the risks faced in the management of stateowned enterprises which result in losses to state finances that have the potential to lead to acts of corruption. The constraints faced by the Directors of SOE due to the long-standing regulation of legal norms in the SOE Law and the Limited Liability Company Law have resulted in the ineffectiveness of the role of SOE Directors in building the national economy. The research is focused on risk management using normative juridical methods based on primary legal materials. The results of the study show that the laws governing SOEs appear discriminatory when compared to privately-owned enterprises and are not conducive to a very dynamic global business environment, even though these types of business entities are the main economic actors in national economic development. Therefore, synchronization efforts are needed through the harmonization of laws and regulations, so that the business risks carried out by the Directors of SOE are very small and provide legal certainty in managing business by SOE.

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