The Comparative Analysis in the Implementation of Good Corporate Governance in Publicly Listed Company and Privately Owned
Company
By
Michael Darmawan
A Bachelor’s Thesis Submitted to the Faculty of BUSINESS ADMINISTRATION
in partial fulfillment of the requirements for the Degree of
BACHELOR OF BUSINESS ADMINISTRATION
SWISS GERMAN UNIVERSITY Campus German Centre Bumi Serpong Damai – 15321
Island of Java, Indonesia www.sgu.ac.id
July 2009
STATEMENT BY THE AUTHOR
I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, not material which to a substantial extent has been accepted for the award of may other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
_______________________________________ ________________
Michael Darmawan Date
Approved by:
________________________________________ __________________
Diana Widyastuti, B.A., MLS Date
______________________________________ _________________
Chairman of the Examination Steering Committee Date
Michael Darmawan
ABSTRACT
The Comparative Analysis in the Implementation of Good Corporate Governance in Publicly Listed Company and Privately Owned Company
By
Michael Darmawan
SWISS GERMAN UNIVERSITY Bumi Serpong Damai Diana Widyastuti, B.A., MLS
The problem exists because most companies in Indonesia are private companies.
While it is easy to monitor the corporate governance of publicly listed companies, since they are required to follow certain regulations (BAPEPAM – LK & KNKG Principles), it is almost impossible to monitor the corporate governance method in private companies for the reason that they are not required to follow any regulations.
The primary purpose of this research is to know whether the principle of Good Corporate Governance is implemented in private companies and publicly listed companies in Indonesia. The methods used are based on FCGI Self Assessment. The findings are Public companies obtained a better score than private companies in all categories (Shareholder Rights, Corporate Governance Policy, Corporate Governance Principle, Disclosure and Audit). Thus the implementation of Corporate Governance
Michael Darmawan
improvement for private companies.
DEDICATION
I dedicate this thesis to my friends and colleagues from Swiss German University and to my parents for their support throughout the research.
ACKNOWLEDGMENTS
The author wishes to firstly express his gratitude to God for his blessing and for giving the chance in conducting this research.
The author also sends his huge gratitude to his families who always supports, cares, helps and gives their attention.
The author also gives gratitude to his thesis advisor, Diana Widyastuti, B.A., MLS.
Who has willingly to spare her busy time for assisting the author during his thesis work, advices, knowledge and point of view in the corporate social responsibility and law field.
Lastly, the author feels thankful for presence of his friends that cannot be named all of them here for their vital encouragement, supports, understanding, constant reminders, and inspirations.
Michael Darmawan
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 4
DEDICATION ... 5
ACKNOWLEDGMENTS ... 6
CHAPTER 1 – INTRODUCTION ... 10
CHAPTER 3 – METHODOLOGY ... 34
CHAPTER 4 – RESULT & DISCUSSION ... 39
CHAPTER 5 – CONCLUSION AND RECOMMENDATION ... 68
GLOSSARY ... 72
REFERENCES ... 74
APPENDIX A – Interview with PT Fortune Indonesia Tbk ... 76
LIST OF TABLES Table 3.1- Advantages & Disadvantages of Interview...35
Table 4.1 – Code of Conduct for private company...49
Table 4.2 – Code of Conduct for public company ... 51
Table 4.3 – List of Committees for private company ... 53
Table 4.4 – List of Committees for public company ... 56
Table 4.5 – Content of Annual Report for private company ... 59
Table 4.6 – Content of Annual Report for public company ... 61
Michael Darmawan
