The Asian financial crisis in 1997 and global financial crisis in 2008 had
encouraged institutions worldwide to change their institutional management by
applying good corporate governance practices. This report reviews the latest
assessment of Indonesia's corporate governance practices and selected
jurisdictions in Asia, with a particular focus on practices undertaken by public
companies in Indonesia. In addition to discussing the principles of corporate
governance, the report also addresses the regulatory framework and the business
environment of several jurisdictions. Based on our analyzed data, although the
practice of Good Corporate Governance (GCG) implementation by Public Listed
Companies (PLCs) in Indonesia is experiencing an increasing trend, but the
achievement of best practice condition could only reached slightly above half
way. Furthermore, the achievement of GCG practices when compared to some of
the neighboring countries in ASEAN, is still sadden (Indonesia position is just one
level above Vietnam).
We see that the trend of investor engagement activity through the adoption of
stewardship code in several countries shows the regulatory awareness and
expectation in those jurisdiction to bring GCG practice to a more strategic level
by involving institutional investors in managing investee companies to help
improve long-term risk-adjusted returns to shareholders.
Departing from the current condition of GCG implementation in Indonesia, we try
to formulate whether it is necessary for Indonesia to apply stewardship code
relevant to its condition


Supervisor: Roy Sembel