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Implementation of the Equity-based Trust in the State-Owned Enterprises in Indonesia

Author

Listed:
  • Reni Anggriani
  • F.X. Joko Priyono
  • Nanik Tri Hastuti

Abstract

Purpose: State-owned enterprise directors in Indonesia function as management and as the representation of the company based on the principle o is role ambiguity, this study seeks to investigate the implementation of the concept of trust in the legal system in Indonesian state-owned enterprises. Approach/Methodology/Design: The research in this study uses the doctrinal method, known as the normative research method, to explain the role of the director in the implementation of trust in a state-owned enterprise. Findings: The results showed that the implementation of trust can be done through equity, in which a person has an object for the benefit of the other party. Equity requires the fulfilment of obligations based on trust, which makes the person who has the object in the law as the legal owner, to the beneficial owner. Practical Implications: The The application of the concept of trust in SOE directors as a public official needs to be clarified because state-owned enterprises are state-owned legal entities which must also be financially accountable. Originality/value: The study first analyze the trust in SOEs in relation with the function of board of directors in carrying out the obligations as stipulated in the LLC Law, and being responsible for the management of the company, with the aim of generating profits with the good corporate governance.

Suggested Citation

  • Reni Anggriani & F.X. Joko Priyono & Nanik Tri Hastuti, 2020. "Implementation of the Equity-based Trust in the State-Owned Enterprises in Indonesia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 237-245.
    • Handle: RePEc:ers:ijebaa:v:viii:y:2020:i:3:p:237-245
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    References listed on IDEAS

    as
    1. Tommy Lyston, 2018. "Restoration for State's Financial Loss as a Countermeasure against Corruption in Indonesia," International Journal of Social Sciences Perspectives, Online Academic Press, vol. 2(2), pages 161-164.
    2. weijland, Hermine, 1999. "Microenterprise Clusters in Rural Indonesia: Industrial Seedbed and Policy Target," World Development, Elsevier, vol. 27(9), pages 1515-1530, September.
    3. Svitlana V. Onyshchuk & Igor I. Onyshchuk & Olha Petroye & Roman Chernysh, 2020. "Financial Stability and its Impact on National Security State: Organizational and Legal Aspects," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 353-365.
    4. Boardman, Anthony E & Vining, Aidan R, 1989. "Ownership and Performance in Competitive Environments: A Comparison of the Performance of Private, Mixed, and State-Owned Enterprises," Journal of Law and Economics, University of Chicago Press, vol. 32(1), pages 1-33, April.
    5. Pius Suratman Kartasasmita, 2020. "Corporate Social Responsibility Disclosure by State-Owned Enterprises in Indonesia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 327-339.
    6. Wahyu Sutiyono, 2007. "Human Resource Management In State-Owned And Private Enterprises In Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 43(3), pages 377-394.
    7. Tommy Lyston, 2018. "Restoration for State's Financial Loss as a Countermeasure against Corruption in Indonesia," International Journal of Social Sciences Perspectives, Online Academic Press, vol. 2(2), pages 161-164.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Trust; fiduciary duty; State-Owned enterprises; Code of Civil Law.;
    All these keywords.

    JEL classification:

    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law

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