THE ROLES OF AUDIT COMMITTEE IN THE IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE (A CASE STUDY IN STATE OWNED ETERPRISES PT PERKEBUNAN NUSANTARA VI (PERSERO)

Abstract

Corporate Governance has become a major topic in global business by increasing business complexity and competitive pressures faced by the company. In Indonesia there is Code of Good Corporate Governance a framework offering standards as well as guidance for enterprises to implement GCG. PTPN VI is a State Owned Enterprises which implemented GCG on its Company business operation. The company organ, especially the Audit Committee has important role in assuring the implementation of GCG in PTPN VI. This study aims to describe the role of Audit Committee in the implementation of CGC in PTPN VI. This studyis conducted using qualitative descriptive approach. The technique used to perform this study is the data collection, observation and interview. The data obtained wereanalysed by describing the performance of Audit Committee in assuring the application of GCG at PTPN VI. The results of this study indicate the existence of an important role of Audit Committee in the implementation of GCG. Moreover these results show the effectiveness of GCG application to protect the Company asset and how GCG become the need for PTPN VI. Becausefor PTPN VI to implemening GCG principles on its bussiness activity is not only an obligation to Law and Provision but also a need. As the recommendation to increasing the GCG implementation, PTPN VI need to encourage all of it’s the employees to join the practice of GCG on their working activity. The commitment and support from all of the stakeholders to implementation of GCG will create added value and achieve the Company’s good state of economy, efficiency, effectiveness and complience (3EC).