Firdaus, Firdaus and Hendra, Rahmad and Samariadi, Samariadi and Zulhuda, Sonny and Lestari, Rika and Firmanda, Hengki (2026) Balance of state-owned enterprises: between public and private entities in providing protection to the board of directors. Al-Risalah: Forum Kajian Hukum dan Sosial Kemasyarakatan, 26 (1). pp. 160-177. ISSN 1412-436X E-ISSN 2540-9522
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Abstract
The position of the state-owned Persero has sparked debate, namely as a public body and a private entity. Consequently, the duties and functions of the Persero SOEs, as drivers of the national economy, are not proportionate to the legal risks faced by the board of directors. The accountability of directors is not only subject to private law but also to public law. This research uses a legal normative method, focusing on legal principles and the level of legal synchronisation. This study found that the Company’s SOEs as private legal entities should be managed through private legal mechanisms. Still, the conflict of norms between the concept of state losses and business risks raises fundamental problems. State capital paid to SOEs has become the wealth of SOEs. However, existing regulations still treat it as state wealth, resulting in the legal status of SOEs becoming blurred and in the loss of their independence and personhood. This research contributes to encouraging legal reform of Indonesian SOEs to clarify the position of SOEs as private entities, directors' accountability, and the management of corruption risks by strengthening transparency and applying the doctrine of fiduciary duty and the business judgment rule as benchmarks for management accountability.
| Item Type: | Article (Journal) |
|---|---|
| Uncontrolled Keywords: | Legal Reforms; Director’s Accountability; Private Entities. |
| Subjects: | H Social Sciences > HG Finance > HG4001 Financial management. Business finance. Corporation finance. K Law > K1001 Commercial Law K Law > K3400 Administrative Law K Law > KBP Islamic Law > KBP1 Islamic law.Shariah.Fiqh > KBP470 Law reform. Criticism. Tanzim |
| Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): | Ahmad Ibrahim Kulliyyah of Laws Ahmad Ibrahim Kulliyyah of Laws > Department of Civil Law |
| Depositing User: | Dr Sonny Zulhuda |
| Date Deposited: | 03 Sep 2026 09:29 |
| Last Update: | 03 Sep 2026 09:29 |
| Queue Number: | 2026-08-Q4975 |
| URI: | http://irep.iium.edu.my/id/eprint/113874 |
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