EVALUATION ON GOOD CORPORATE GOVERNANCE PRACTICES AT PT. BAKRIELAND DEVELOPMENT, TBK (Case Study in the Fulfillment of Independence Principle by Board of Commissioners)

Abstract

Good Corporate Governance (GCG) emerged as a response of various economic scandals involving big companies. This scandal comes as a result of conflict of interest between the owner and manager. In a company, the owner does not manage directly and appoint another person to become manager. Therefore, Board of Commissioners is appointed as a representative of the owner. Bakrieland is a property firm which implemented GCG on its company business operation. GCG concept is introduced as an effort to keep the company’s organ can perform its function properly. The company organ, especially Board of Commissioners has important role in carrying out the implementation of GCG in Bakrieland. This study aims to evaluate the practice of Board of Commissioners viewed from independence principle in the implementation of GCG in Bakrieland. This study is conducted using qualitative descriptive approach. The technique used to perform this study is the data collection, observation and interview. The data obtained were analyzed by describing the performance of Board of Commissioners in carrying out the application of GCG in Bakrieland. Moreover the results of this research show the effectiveness of GCG application to protect company management and how GCG become a need for Bakrieland. Because for Bakrieland in implementing GCG principles on its business activities are not only an obligation to Law and Provision but also a need. As the recommendation to improve the GCG implementation, Bakrieland need to encourage their employees to participate the practice of GCG in their working activity. The commitment and support from all of the stakeholders to implement the GCG will create added value and achieve the company’s good in economy, efficiency, effectiveness and compliance (3EC).