Professional Documents
Culture Documents
Indonesia Promoting Sound Corporate Governance Policies
Indonesia Promoting Sound Corporate Governance Policies
www.oecd.org/indonesia
Corporate governance
PROMOTING SOUND CORPORATE GOVERNANCE PRACTICES
As the end-2015 deadline for the ASEAN Economic Community approaches, there is an urgent need for
Indonesia to improve its corporate governance.
Sound corporate governance will reassure stakeholders that their rights are protected, thus building
confidence and trust in doing business in Indonesia.
Indonesia has introduced a legal and regulatory framework on corporate governance, but further work is
needed: Disclosure of beneficial ownership and control in listed companies should be improved, public
enforcement strengthened and board nomination and election processes enhanced.
Indonesias corporate governance practices score lower than those of its ASEAN peers
Corporate governance scores, 2013
100
90
80
Role of Stakeholders
Equitable Treatment
Rights of Shareholders
70
60
50
40
30
20
10
0
Viet Nam
Indonesia
Philippines
www.oecd.org/policy-briefs
Singapore
Malaysia
Thailand
MARCH 2015
Further reading
OECD (2014), Public Enforcement and Corporate Governance in Asia:
Guidance and Good Practices, OECD Publishing. http://www.oecd.
org/daf/ca/Public-Enforcement-Corporate-Governance-Asia.pdf
OECD (2013), Better Policies for Board Nomination and Election in
Asia, OECD Publishing. http://www.oecd-ilibrary.org/governance/
better-policies-for-board-nomination-and-election-inasia_9789264204386-en
This paper is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and the
arguments employed herein do not necessarily reflect the official views of OECD member countries.
www.oecd.org/policy-briefs