Proceedings of 1st Workshop on Environmental Science, Society, and Technology, WESTECH 2018, December 8th, 2018, Medan, Indonesia

Research Article

Transparency in the Implementation of Good Corporate Governance in Indonesia Public Company

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  • @INPROCEEDINGS{10.4108/eai.8-12-2018.2283949,
        author={Hamzah  Hamzah and Muh Barid Nizarudin Wajdi},
        title={Transparency in the Implementation of Good Corporate Governance in Indonesia Public Company},
        proceedings={Proceedings of 1st Workshop on Environmental Science, Society, and Technology, WESTECH 2018, December 8th, 2018, Medan, Indonesia},
        publisher={EAI},
        proceedings_a={WESTECH},
        year={2019},
        month={6},
        keywords={ojk corporate governance company},
        doi={10.4108/eai.8-12-2018.2283949}
    }
    
  • Hamzah Hamzah
    Muh Barid Nizarudin Wajdi
    Year: 2019
    Transparency in the Implementation of Good Corporate Governance in Indonesia Public Company
    WESTECH
    EAI
    DOI: 10.4108/eai.8-12-2018.2283949
Hamzah Hamzah1, Muh Barid Nizarudin Wajdi2,*
  • 1: Law Faculty, Universitas Lampung, Indonesia
  • 2: STAI Miftahul Ula Nganjuk, Indonesia
*Contact email: baridnizar84@gmail.com

Abstract

The economic crisis has presented the fact of how vulnerable Indonesian companies are. The failure of the company to survive in the crisis due to bad corporate governance. The Board of Directors is the executive organ that determines the progress of the company. The shareholder is the party most concerned with the governance of the company. Good Corporate Governance is a policy that aims to strengthen the company. Transparency is a central principle in Good Corporate Governance. Transparency is used interchangeably for disclosure. Law no. 8 of 1995 Concerning Capital Market covers the principle of transparency through disclosure. Conversely, the Good Corporate Governance guidelines mention disclosure of information in transparency. The Financial Services Authority (OJK) still exercises its authority to enforce capital market laws. Every year, OJK impose administrative sanctions on companies that violate information disclosure. Administrative sanctions are aimed at building the compliance of public companies (issuers) and public companies