Hutagao, Bob C. and Hamama, Dian and Adiwiyono, Slamet and Priana, Wahyu (2013) Indonesian Good Governance Road Map A Proposed Gap Analysis, Recommendation and Result Indicatorsfor Financial Services and Public Services. Project Report. Sekolah Tinggi Manajemen IPMI, Jakarta Selatan. (Unpublished)

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Abstract

Group Field Project is one of the requirements for obtaining the Master Degree at IPMI International Business School. Our GFP focuses on identifying gap, developing recommendation and result indicator for implementation of good governance in Indonesia by using case of Public Listed Companies for financial services and case of subsidized fertilizer distribution for public services.In Indonesia, Good Corporate Governanceimplementation is still limited to company compliance,not yet embedded as a company culture. Corporations do not act as stand-aloneentity, always influenced by the organizers of the state and society (the concept of three pillars), so it needs a thorough revamping of public and societal governance. There is limited harmonization of regulations on corporate governance issued by some regulators. Finally there is limited cooperation among regulators and other relevantparties in an effort to improve the implementation of corporate governance in Indonesia.Good corporate governance enhances investor trust, helps to protect minority shareholders, and can encourage better decision making and improved relations with workers, creditors, and other stakeholders. It is an important prerequisite for attracting the patient capital needed for sustained long-term economic growth.Assessment results of some agencies, such as ROSC (Reports on the Observance of Standards and Codes)-World Bank, ACGA (Asian Corporate Governance Association), ASEAN CG score card put Indonesia on low rank, even the lowest among ASEAN countries. Some efforts had been taken to improve the condition, however the result wasgetting worsen instead of improving. This is due to the fact other countries improved better and faster. Based on the OECD principles, it is known that successful implementation of corporate governance involves three pillars: Government, Private and Public. In each of these pillars, there are several agencies and institutions involved in the implementation of GCG.We use the Report of Komite Kebijakan Publikand PATTIRO USAID report for finding the gaps in the public services specially focus on the distribution of the fertilizer. The facts from the field and discussion with several farmers in the remote area also strengthening the result analysis. viiiKNKG is a committee created by Indonesia government in 1999 which mission to expand Good Governanceimplementation in Indonesia. KNKG considers it deems necessary to create a blue print which can be used by all stakeholders involve in Good Governanceimplementation in Indonesia.We also work closely with this institution where they are the formal independent body that promote the Corporate Governance. The methodology of collecting data is also includingjoin actively in the working group initiated by Otoritas Jasa Keuangan. Which it enrich our observation and analysis of the environment of Corporate Governance in Indonesia.In our observation, good corporate governance cannot be achieved merely on the strength of regulations. Regulation is just one of three core components of corporate governance. Robust corporate governance also requires fully-functioning self and market disciplinary mechanisms, where all stakeholders assume responsibility for their decisions and actions. Proactive and responsible actions by shareholders, gatekeepers and influencers are equally crucial to ensure market discipline instils a corporategovernance culture. In this GFP we develop an analysisby identifying gap, developing recommendation and result indicator for implementation of good governance in Indonesia by using case of Public Listed companies for financial services and case of subsidized fertilizer distribution for public services.We build up a Road Map of Corporate Governance thatwe summarized and analysed from the private and public sectors. ThisRoad Map should becomea single reference for all the stake holders of Corporate Governance, which it is a core of initiative that this country should implement.Those two sectors, financial services and public service that we’ve been observed their current practice of Corporate Governance and finding the gaps with the report from the ROSC, ACGA and PATTIRO USAID, and benchmarking with the TARIF principles, we found the outcome of this observation finalized with 52 initiatives. Those initiativesbecome embedded in the Road Map of Corporate Governance and come up with some recommendation of the improvement in some areas.

Item Type:	Monograph (Project Report)
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management H Social Sciences > HJ Public Finance
Divisions:	Library > GFP (Group Field Project)
Depositing User:	Elza Christina Nur Ramadani
Date Deposited:	17 Jan 2020 02:17
Last Modified:	17 Jan 2020 02:17
URI:	http://repository.ipmi.ac.id/id/eprint/321

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