THE IMPACT OF IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE PRINCIPLES IN A PROPERTY DEVELOPMENT COMPANY (A CASE STUDY OF PT. BAKRIELAN DEVELOPMENT TBK)

Abstract

The understanding of the vision and mission in good corporate governance of the company is needed for government and private companies and absolutely necessary for the survival in the business. Activities planned and programmed it can be achieved with the existence of the system of good corporate governance. This research aims to investigate the implementation of corporate governance that are applied in a public limited liability company which is prominent in Indonesia and its impact on the company. The design of Bakrieland’s corporate management system takes into account the Indonesian code of GCG compiled by the National Committee on Governance Policy concerning implementation of principles of transparency, accountability, responsibility, independence as well as equality and fairness. Based on the observation, Bakrieland has conducted activities in effort to implement GCG principles and enhance the implementation continuously in managing the company. Transparency implemented by Bakrieland in conducting its business through releasing substantive and relevant information that is easily accessible and understood by stakeholders. Accountability, Bakrieland has in placed a corporate management system that supports clarity in the function, implementation and responsibility of units within the corporate structure. Responsibility, Bakrieland uncompromisingly places priority on adherence to the existing laws and regulations, and in fulfilling its responsibility to the community and the environment, hence sustaining long-term business continuity. Independence, Bakrieland constantly ensures that corporate management is applied in an independent manner where no corporate organ can dominate the other and neither can there be intervention from outside parties. Fairness, The company guarantees equal treatment to the public, capital market authorities, capital market communities and stakeholders. Based on the research, good corporate governance has several impacts for the company. The impacts are: the good corporate governance implementation is not directly proportional to the financial company performance, company start to implement risk management and internal control system, more transparent disclosures to the shareholders and stakeholder, a clearer arrangement of the functions and responsibilities of each organ of the company, apply business ethics consistently so as to manifest a healthy business climate, and guaranteed the rights and obligation of employees’ accordance with existing regulations.