The Implementation of Subsidiary toward Holding Company in Manifestation of Good Corporate Governance (GCG) Principle

International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue IV, April 2019 | ISSN 2454–6186

The Implementation of Subsidiary toward Holding Company in Manifestation of Good Corporate Governance (GCG) Principle

Alfarina Ardyastutik^1*, Albertus Sentot Sudarwanto², Yudho Taruno Muryanto^3
1Master Program of Law, Universitas Sebelas Maret, Surakarta, Indonesia
^2,3Lecturer Master Program of Law Universitas Sebelas Maret, Surakarta, Indonesia
*Corresponding Author

Abstract: – This research aims to know the implementation of the subsidiary toward the holding company in manifestation of Good Corporate Governance (GCG) principle. This research was conducted at PT INKA (Persero) and PT IMS. This research uses empirical legal research and the nature of this research is descriptive research. It explained implementation of the subsidiary toward the holding company in manifestation of Good Corporate Governance (GCG) principle. The types of data are divided into primary and secondary data. The primary data are the data gained from interview, and the secondary data taken from written document, reports, books, journals, and articles related to the research. Meanwhile, source of data consist of primary and secondary data source. The primary data source is information or fact which is directly gained through research on location, and secondary data source consist of primary and secondary legal material. Technique of collecting primary data is conducted by interview, while technique of collecting secondary data is conducted by literature review. Based on the research finding and discussion, it can be concluded that the implementation of Subsidiary toward holding company in manifestation of Good Corporate Governance has been corresponding with Article 36 paragraph (2) of Decree of the Minister of State-Owned Enterprises No: KEP-117/M-MBU/2002 concerning the application of Good Corporate Governance Practice in the State-Owned Enterprises. The implementation of the Good Corporate Governance Principle is important for companies. It is used to increase business success and company accountability in order to embody long term shareholder value while while paying attention to the interest of other stakeholders based on the legislation and ethical values.

Keywords: Implementation, Good Corporate Governance, The Holding Company and Subsidiary Of State-Owned Enterprises

I. INTRODUCTION

Badan Usaha Milik Negara (BUMN) or State-Owned Enterprises (SOEs) is business entity which all or most of its capital come from separated state assets, including one of economic agents in the national economy system aside from private business and cooperation. Separated assets of the State-Owned Enterprises (SOEs) are state wealth coming from State Expenditure Budget (APBN) made as state capital participation in Persero (limited liability company) and / or Perum (public service Company) and other limited company.

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