{
    "success": true,
    "data": {
        "id": 1824239,
        "msgid": "business-judgment-rule-deemed-crucial-to-support-soe-transformation-1782399168",
        "date": "2026-06-25 21:24:03",
        "title": "Business Judgment Rule Deemed Crucial to Support SOE Transformation",
        "author": "Satria K Yudha",
        "source": "REPUBLIKA",
        "tags": "",
        "topic": "Economy",
        "summary": "Experts argue that the Business Judgment Rule (BJR) is essential for strengthening the governance of the newly formed BPI Danantara, providing legal certainty for directors making professional business decisions. The rule, underpinned by recent legislation, protects management from liability for decisions involving business risk, provided they are free from fraud or conflicts of interest. Stakeholders emphasise that harmonising legal frameworks is vital to allow state-owned enterprises to operate effectively and drive national economic growth.",
        "content": "<p>Nagara Institute researcher Satya Arinanto stated that the\napplication of the Business Judgment Rule (BJR) principle is a crucial\nelement in strengthening the governance of BPI Danantara. According to\nhim, this legal doctrine provides room for directors to make\nprofessional business decisions while remaining grounded in the\nprinciples of prudence and good governance. \u201cThis legal protection rule\naims to provide certainty for management in making business decisions\nthat carry business risk,\u201d Satya said during a Nagara Institute\u2013Akbar\nFaizal Uncensored (AFU) Round Table Discussion in Jakarta on Thursday\n(25\/6\/2026). Satya explained that the regulation is based on three main\nlegal pillars: Law Number 16 of 2025 on the Fourth Amendment to Law\nNumber 19 of 2003 concerning State-Owned Enterprises (BUMN), Law Number\n40 of 2007 concerning Limited Liability Companies (PT), and Law Number\n21 of 2021 on the Amendment to Law Number 31 of 1999 concerning the\nEradication of Corruption. He noted that the BJR concept aims to protect\ndirectors who make business decisions professionally and in accordance\nwith applicable regulations. \u201cDirectors cannot be blamed as long as\ntheir decisions do not involve elements of fraud, conflicts of interest,\nor unlawful acts,\u201d Satya said. Satya added that the latest regulation in\nLaw Number 16 of 2025 reinforces the paradigm of asset management based\non limited liability company principles. This provision confirms the\nposition of company wealth as assets separated from state finances, yet\nremaining within the corridor of supervision and accountability.\n\u201cAlthough the wealth is separated, supervision and examination of the\ncompany are still carried out as part of state asset management. At the\nsame time, proven legal violations must of course be processed according\nto applicable regulations,\u201d Satya said. Former President Director of PT\nMerpati Nusantara Airlines, Hotasi Nababan, stressed the importance of\nharmonising the various legal regimes governing the management of SOEs.\nHe believes legal certainty will help state company managers carry out\nbusiness functions more optimally. \u201cWe live under two regimes with\ndifferent characteristics. Therefore, clarity and alignment of\nregulations are needed so that company management can run effectively\nand remain accountable,\u201d Hotasi said. Consequently, Hotasi assessed that\nBPI Danantara needs to be supported by a strong legal framework to\nsupport national economic growth targets. Regulatory certainty is\nconsidered important so that professionals can optimally execute various\ninvestment and business development strategies. \u201cWhat needs to be\nclarified is the boundary between reasonable business risk and legal\nviolations. That way, directors have sufficient room to make strategic\ndecisions that can drive economic growth,\u201d Hotasi said. Meanwhile,\nNagara Institute Executive Director Akbar Faizal said that the\nrestructuring of SOEs through Danantara is a strategic step that must be\nsupported by strong governance and professional leadership. He believes\nthis process is a momentum to strengthen the competitiveness of SOEs\nwhile increasing economic benefits for the community.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/business-judgment-rule-deemed-crucial-to-support-soe-transformation-1782399168",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}