State-Owned Enterprise Reconstruction to Achieve Legal Certainty in the Implementation of Good Corporate Governance

Abstract

State-Owned Enterprises (BUMN or SOE’S) is corporate entities with unique features due to their status as state-owned enterprises. In compliance with Article 33 paragraphs (2) and (3) of the 1945 Constitution of the Republic of Indonesia, state-owned enterprises (SOEs) have an economic function to create profits and a social function to promote public welfare. Nevertheless, the execution of these two functions will result in a contradiction in their implementation because the criteria for evaluating their success are significantly different. SOEs must be reconstructed by classifying them based on the boundaries of the state's jurisdiction to manage SOEs and the composition of their business orientation, so that their implementation follows the rules, objectives, and relevant functions. This study method is normative legal research. The research typology employed is a prescriptive legal research typology. The data utilized in this study are secondary data. The collecting of study was performed through library research. The method of data analysis employed is qualitative. The findings of the performed research are presented as analytical prescriptive research.