International Journal of Entrepreneurship (Print ISSN: 1099-9264; Online ISSN: 1939-4675)

Abstract

Challenges of the Board of Commissioners in Strengthening Good Cooperate Governance in State-Owned Insurance Companies in Indonesia

Author(s): Wetria Fauzi, Andalusia, Yasniwati

The practice of good corporate governance is one of the main pillars in the effort to achieve a healthy state-owned insurance company. The position of commissioner is used as a political background regardless of the ability and knowledge of prospective commissioners in the business sector of state-owned companies. State-owned insurance companies are rife with default cases; this affects the continuity of the insurance industry. The Board of Commissioners is also responsible for carrying out its supervisory duties. The problem of default of several insurance companies will have an impact on the development of the insurance industry in Indonesia; therefore serious steps are needed to solve various existing insurance problems. One of the factors that influence the implementation of good corporate governance in BUMN insurance is the board of commissioners. Article 114 Paragraph (3) of the Limited Liability Company Law states that each member of the Board of Commissioners is personally responsible for the loss of the Company if the person concerned is guilty or negligent in carrying out his duties. The Commissioner plays an important role in implementing good insurance company governance and with the principle of good faith, which is responsible for independent supervision and control functions on the Board of Directors who carry out management in order to realize and continuously improve the health of BUMN insurance. The commissioner's duties related to supervision are classified as a task that requires special attention. In carrying out its function as an element that can strengthen good governance of state-owned insurance companies, the Board of Commissioners is challenged by many factors of interest from the government, arrangements that have not been maximized and the joint commitment of stakeholders in implementing good governance of state-owned insurance companies. Optimizing the relationship between the board of commissioners and the board of directors. This is because there are still commissioners who do not properly position themselves, so that the role of the commissioners becomes less than optimal.

Get the App