Report on the Observance of Standards and Codes : Corporate Governance Country Assessment, Republic of Indonesia

World Bank

Washington, DC

关键词: ACCESS TO INFORMATION;    ACCOUNTABILITY;    ADMINISTRATIVE SANCTIONS;    APPLICABLE LAWS;    AUDIT COMMITTEES;   

RP-ID  :  35085

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

In reforming its corporate governance,and in establishing a rule-based business culture, Indonesiafaces many challenges. The key challenges are as follows.Enforcement of laws and regulations needs to bestrengthened. Administrative sanctions for violation ofsecurities or disclosure rules may not be adequate. Effortsshould be expended to ensure that corporate officials in theposition of trust are held accountable when they violate thelaw. Sanctions should go beyond fines, and the incentivesystem should be changed so that violators are trulydiscouraged, and good corporate behavior is promoted. Thisrequires strengthening enforcement capacity of Bapepam forsecurities violations, and its independence as thesecurities regulator. The Company Law should explicitlyrefer to the fiduciary duties of directors and managers forviolation of securities laws. Current efforts to amend theCompany Law need to be expedited. Further efforts shouldalso be expended to develop alternative (non-judiciary)mechanisms, such as shareholder activism, for encouraging compliance.