IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE : LESSON FROM STATED OWNED ENTERPRISES IN INDONESIA

Abstract

Many oil and gas companies have not been efficient in managing general and operational
costs incurred. Good corporate governance (GCG) needs to be applied as one of the concept
for companies to be more efficient. One of the objectives of GCG implementation is to
improve the efficiency, effectiveness and sustainability of an organization that can contribute
to the creation of the welfare shareholders, employees and other stakeholders and is an
effective solution in facing future organization challenges.
The purpose of this study was to analyze the influence of the principles of Good Corporate
Governance (GCG) consisting of transparency, accountability, responsibility towards the
performance of the company PT.PL as one of the biggest stated owned enterprises in
Indonesia. This study uses Partial Least Square (PLS) Smart analysis. PLS is a multivariate
analysis that is used to analyze relationships between variables in a complex manner under
100 sample. The population in this study were workers at PT.PL. Sampling using the
Purposive Sampling technique and obtained as many as 32 respondents
Based on the research, it was found that accountability and responsibility had positively
influenced on the company performance. The transparency had no effect on the company
performance because the implementation of GCG in Indonesia was generally stagnant.
According to this, we are expecting that stated owned enterprises top management could pay
more attention to GCG in Indonesia.