Abstract

Abstract This research is motivated by The condition is that Regionally-Owned Enterprises (BUMD) are businesses owned by the Regional Government, whose purpose is to serve as a source of regional revenue (PAD). However, in reality, existing BUMDs have not been able to make a significant contribution to regional original revenue (PAD). The existence of BUMDs so far, especially regional limited companies (Perseroda), is unlike State-Owned Enterprises, most of whose business activities already apply the principles of good corporate governance (GCG).This research aims toanswering the problem regarding the regulation of good corporate governance (GCG) principles in Perseroda according to Indonesian positive law, the implementation of the regulation of good corporate governance (GCG) principles in Perseroda in Indonesia, as well as the model of regulation of good corporate governance (GCG) principles in the future in realizing a healthy Perseroda. This research is a normative legal research using the Statute Approach, Conceptual Approach and Analytical Approach methods. The results of the study indicate that the Regulation of GCG principles in Indonesia regulated in Law Number 23 of 2014 concerning Regional Government experiences a lack of clarity or ambiguity in its normative implementation in the management of BUMD at the regional level, thus causing problems, such as transparency and accountability. The model of regulating GCG principles in the future in realizing a healthy BUMD is a regulatory model based on systemic and comprehensive principles. The suggestions that the author can provide from this research are To strengthen the management of BUMD in regional government, normative institutions are needed that balance the interests of shareholders and other stakeholders to provide legal protection and certainty and reduce the potential for conflict between profit-seeking and compliance with applicable regulations.

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