STRENGTHENING THE LEGAL LIMITS OF THE BUSINESS JUDGMENT RULE ON DECISIONS OF DIRECTORS OF STATE-OWNED ENTERPRISES: A COMPARATIVE STUDY OF INDONESIA AND AUSTRALIA

Muhammad Hanan Nuhi, . (2026) STRENGTHENING THE LEGAL LIMITS OF THE BUSINESS JUDGMENT RULE ON DECISIONS OF DIRECTORS OF STATE-OWNED ENTERPRISES: A COMPARATIVE STUDY OF INDONESIA AND AUSTRALIA. Journal of Law, Poliitic and Humanities (JLPH), 6 (4). pp. 2757-2771. ISSN 2962-2816

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Abstract

The Company's objectives must be carried out based on the principles of Good Corporate Governance. The application of these principles can give rise to the doctrine of Fiduciary Duty for Directors, especially in making risky business decisions. In practice, Directors often face claims for losses resulting from business decisions taken, so the Business Judgment Rule exists as a form of legal protection. In Indonesia, the regulation of the Business Judgment Rule is contained in Article 97 paragraph (5) of the Company Law and Article 9F of the State-Owned Enterprise Law. However, these provisions still leave room for ambiguity and do not have clear indicators, thus creating legal uncertainty in several cases. This research is a normative juridical research with a statutory, comparative, and case approach using primary, secondary, and tertiary legal materials. The results of the study indicate that good faith and due care are the main factors in the judge's considerations. Compared with the Corporations Act 2001 Australia, the regulation of the Business Judgment Rule in Indonesia is still less systematic, requiring revision of the Company Law and the State-Owned Enterprise Law as well as the formation of derivative regulations. However, the Directors of State-Owned Enterprise are still obliged to apply a number of Good Corporate Governance principles to avoid conflicting with the law or containing abuse of authority.

Item Type: Article
Additional Information: [No. Panggil: 2210611206] [Pembimbing: Diani Sadia Wati] [Ketua Penguji : Andriyanto Adhi Nugroho] [Penguji 1: Aurora Jillena Meliala] [Penguji 2: Diani Sadia Wati]
Uncontrolled Keywords: Good Corporate Governance, State-Owned Enterprise, Business Judgment Rule
Subjects: K Law > K Law (General)
Divisions: Fakultas Hukum > Program Studi Hukum (S1)
Depositing User: MUHAMMAD HANAN NUHI
Date Deposited: 26 Aug 2026 07:55
Last Modified: 26 Aug 2026 07:55
URI: http://repository.upnvj.ac.id/id/eprint/52553

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