THE ROLE OF INTERNAL AUDITS IN SUPPORTING IMPLEMENTATION

OF GOOD CORPORATE GOVERNANCE AT

PT GARUDA INDONESIA (Persero) Tbk.
M. Rivanji Chandra Faras 1 , Drs. H. Harun Delamat, M , Si , Ak., CA 2 ,
Hj. Rina Tjandrakirana DP, SE, MM, Ak 3
Sriwijaya University, Palembang
e-mail: rivanjichndra@gmail.com

ABSTRAK
Penelitian ini bertujuan untuk mendeskripsikan serta menganalisis penerapan prinsip-
prinsip GCG dan peran audit internal dalam mendorong penerapan GCG pada PT Garuda
Indonesia (Persero) Tbk. Penelitian ini menggunakan jenis penelitian deskriptif dengan
pendekatan kualitatif. Metode analisis yang digunakan adalah metode studi pustaka serta
melakukan wawancara terstruktur kepada bagian audit internal dan corporate governance dari
PT Garuda Indonesia (Persero) Tbk. Hasil penelitian ini menunjukkan bahwa PT Garuda
Indonesia (Persero) Tbk. telah sepenuhnya menerapkan prinsip GCG dengan baik dan sesuai
dengan regulasi yang berlaku. Sebagai alat dari GCG, audit internal telah memberikan
kontribusi dalam penerapan GCG sehingga setiap kegiatan usaha perusahaan telah terpantau,
terlaksana sesuai prosedur maupun regulasi yang berlaku, dan dievaluasi agar menjadi lebih
baik. Penerapan GCG tidak secara langsung dapat meningkatkan kontribusi BUMN dalam
perekonomian nasional.

Kata Kunci: Audit Internal, BUMN, Good Corporate Governance

ABSTRACT
This study aims to describe and analyze the implementation of GCG principles and
the role of internal audit in encouraging the implementation of GCG at PT Garuda Indonesia
(Persero) Tbk. This study uses a descriptive research method with a qualitative approach. The
analytical method used is the literature study method and conducting structured interviews
with the internal audit and corporate governance department of PT Garuda Indonesia
(Persero) Tbk. The results of this study indicate that PT Garuda Indonesia (Persero) Tbk. has
fully implemented the GCG principles properly and in accordance with applicable
regulations. As a tool for GCG, internal audits have contributed to the implementation of
GCG so that every business activity of the company has been monitored, carried out
according to applicable procedures and regulations, and evaluated to make it better. The
implementation of GCG does not directly increase the contribution of BUMN in the national
economy.
Keywords: Internal Audit, BUMN, Good Corporate Governance

1
 1. PRELIMINARY
Along with the development of Indonesia to be better after the economic crisis in 1998,
in fact there are still many people who do not know the way the government survive to rise
from this difficult time. In realizing people's welfare, the government does various things in
the economic sector to increase domestic economic growth. One of them is by spurring the
performance of Badan Usaha Milik Negara (BUMN). By showing a good performance,
BUMN are trusted to be able to support the economy and also able to provide services for the
welfare of society. The contributions made by these state-owned companies are in fact able to
raise up the national economy.
Based on data obtained from BPS, the increase in the national economy in 2018 is
supported by three business fields with the highest growth value. The highest growth was
obtained from the information and communication sector business sector with a contribution
of 8.69 %, then the transportation and warehousing sector with 8.59% and other services
amounting to 8.42% .
In order to improve the strong national economy, the contribution of BUMN is very
necessary. The better the company's performance is, the greater the contribution is
given. Therefore the company is required to be continuously developed and increase its
performance from year to year. One of the ways done by the government is to require every
company, especially state-owned companies to apply the principles of Good Corporate
Governance or better known as good corporate governance.
Corporate governance is one form of foundation that must be remade by the
company. With the principle of Good Corporate Governance or abbreviated as GCG, where
companies apply good corporate governance through five factors (Transparency,
Independence, Accountability, Accountability, and Fairness).
PT Garuda Indonesia (Persero) Tbk. is a state-owned airline (BUMN) that has succeeded
in maintaining its consistency in implementing the principles of Good Corporate
Governance. In supporting the implementation of good GCG, PT Garuda Indonesia (Persero)
Tbk. assisted by the Internal Control Unit (SPI) formed independently under the Board of
Commissioners.

Diagram 1.2.
PT Garuda Indonesia (Persero) Tbk. GCG System
 Through a systematic approach, internal audit is capable of evaluating the company's
performance, as well as increasing the effectiveness in risk management. Internal auditors are
required to be independent in carrying out their duties, this is aimed at supporting the entity's
business to apply the principles of Good Corporate Governance as supervisor without being
affected by the interests of any party and ensuring that the implementation of the Good
Corporate Governance principles has been carried out properly.
From this explanation, it can be seen that there is a connection between the
communication made by the company to the stakeholders, both stakeholders and
stockholders, and the company needs to maintain consistency in conducting business in
accordance with applicable regulations so as to create a balance between external and internal
companies.

2. LITERATURE REVIEW
2.1. Internal Audit
According to IIA, internal audit is an assessment of beliefs, independent, objective and
consulting activities designed to add value and improve the organization's operations. Internal
audit helps organizations to achieve their goals, through a systematic and regular approach to
evaluating and increasing the effectiveness of risk management, control and governance
processes.

Specifically the purpose of conducting an internal audit can vary depending on how the
company prioritizes it. In general, internal audits are conducted aimed at:
1. To research and understand whether the implementation of internal controls in the
field of accounting and operations has been in accordance with applicable regulations.
2. Assessing whether policies and planning have been carried out with established
procedures.
3. Assessing whether the company's activities are safe from loss and fraud.
4. Assessing the accuracy of the data in the company organization.
5. Assessing the quality or implementation of tasks assigned to each management.
2.2. Good Corporate Governance
According to the Regulation of the State Minister for Badan Usaha Milik Negara
Number: PER-01/MBU/2011, it defines the principles that underlie a process and mechanism
for managing a company based on legislation and business ethics.
Based on the Regulation of the State Minister for for Badan Usaha Milik Negara
Number: PER-01/MBU/2011 provision 3 (three), the principles of Good Corporate
Governance are as follows:
1. Transparency (transparency), that is the openness in carrying out the decision
making process and openness in disclosing material and relevant information about
the company. In this case the company always provides material and voluntary
information in an adequate, accurate, timely, and easily accessible manner
to shareholders and stakeholders. The company is also expected to publish
information about various routine reports such as financial reports, incidental
reports, and audited financial statements through public exposure, print media and
through the company's official website .
 2. Accountability (accountability), that is clarity of function, implementation and
accountability of organs so that the management company to run effectively.
Function clarity means that there is a division of roles run by important parts of the
company. According to Yuwono (2011) the problem often found in Indonesian
companies is the sterility of the supervisory function of the Board of
Commissioners. Where the role is unclear so that the President Commissioner
takes the role and authority that should be carried out by the Board of Directors. In
addition to the clarity of functions, the company is also responsible for ensuring
that all parts of the company and employees have adequate competence.
3. Accountability (responsibility), the suitability in the management of the company
against the laws and principles of a healthy corporation. In carrying out its business
activities, companies are required to comply with applicable laws and
regulations. These regulations can be related to tax issues, industrial relations, life
protection, occupational health / safety, payroll standards, and healthy
competition. With compliance with these regulations, the company will obtain
benefits such as maintaining long-term business continuity to obtain recognition.
4. Independence ( independence) , which is a condition in which a company is
managed professionally without conflict of interest and influence / pressure from
any party that is not in accordance with the laws and regulations and healthy
corporate principles. As a form of independence, the company will appoint several
highly reputable independent parties to sit on the Board of Commissioners and
Directors and contribute to the company's Audit Committee in overseeing the
company's performance. With the neutral management of the company, decision
making will be more objective so that it can produce more optimal output
for shareholders, stakeholders, and their employees .
5. Fairness (fairness), namely fairness in equality in meeting Stakeholder rights
arising under treaties and legislation. The form of fairness within the company is in
the form of giving opportunities to every interested party within the company and
to every party who is willing and dedicated to work within the company by paying
attention to the balance of rights and obligations fairly and fairly.

The implementation of GCG principles to BUMN aims to:

1. Optimizing the value of BUMN so that the company has a strong competitiveness,
both nationally and internationally, so as to be able to maintain its existence and
sustainable life to achieve the aims and objectives of the BUMN.
2. Encourage the management of BUMN professionally, efficiently, effectively, and
empower functions and increase the independence of the Organ Organizations /
Organ Organizations.
3. Encourage Organ Persero / Organ Perum in making decisions and perform actions
based on high moral values and adherence to laws and regulations, as well as
an awareness of the social responsibility of BUMN to Stakeholders and
environmental sustainability around SOE.
4. Increase the contribution of BUMN in the national economy.
5. Improving a conducive climate for the development of national investment.

3. RESEARCH METHODOLOGY
3.1. Types of research
This kind of research is a descriptive research with a qualitative approach. By
focusing research on how to implement GCG at PT Garuda Indonesia (Persero)
 Tbk. through the internal audit perspective to assess how the principles of GCG are
implemented.
3.2. Research focus
The writers set the focus on this study in order to limit the discussion, so that
in conducting research there is no confusion of research topics and discussing the
problem being studied. This research also uses a perspective through internal audits
conducted at PT Garuda Indonesia (Persero) Tbk . The focus of this research are:
1. Analyzing the role of GCG in an effort to improve the National Economy.
2. Analyzing the contributions made by PT Garuda Indonesia (Persero) Tbk. in
improving the National Economy.
3. Understand the strategies implemented by PT Garuda Indonesia (Persero)
Tbk. thus encouraging the implementation of GCG principles well through the
perspective of Internal Audit.
4. Obstacles faced by PT Garuda Indonesia (Persero) Tbk. in an effort to apply the
principles of GCG.
3.2. Data types and sources
The types of data used in this study are primary data and secondary data
1. Primary data is data obtained directly from the object of research in which the
collection was conducted specifically by the researcher to answer the questions in
the study. The data collection was done byinterviewing directly to the respondent.
2. Secondary data is data obtained directly through intermediaries or through
intermediary media. This data can be in the form of notes, reports that have been
compiled, evidence that has been published and which is not published.
3.3. Method of collecting data
Obtaining data is the goal of doing a study. In an effort to obtain data for this study,
writers used common techniques such as:
1. Interview
A direct data collection techniques by providing questions to the respondents directly
through conversation. In this study interviews were conducted to understand deeper
about the existing problems and add data that is not available in the media. The
interview technique is a structured interview where the researcher gives questions
according to the list of questions that have been prepared.
2. Documentation
Documentation on this research can be notes, books, newspapers, transcripts, or other
book data that provides information on PT Garuda Indonesia (Persero) Tbk.
3.4. Data analysis method
The analysis of the data applied is by interviewing the interviewees PT Garuda Indonesia
(Persero) Tbk . This interview was conducted to find out how the role of internal audit is in
supporting the implementation of the GCG principles. The interview is adjusted to the list of
questions.
The role of internal audit in supporting the implementation of GCG:
1. Encouraging transparency and integrity in corporate financial reporting,
2. Encouraging accountability in managing company assets,
3. Encouraging corporate accountability to the public through CSR or the Program
Kemitraan dan Bina Lingkungan (PKBL),
4. Encouraging company independence towards related parties including minority
shareholders,
5. Encouraging fairness in equal and fair treatment of opportunities provided by
employees to contribute to the company.
 Data that has been collected will be managed to obtain conclusions. The data analysis
can be done by way of data reduction, data presentation, drawing conclusions.

Data reduction
Data reduction is the stage of data analysis carried out by the process of summarizing ,
sorting, and categorizing the data that has been obtained from the results of data collection
through interviews, observation, and documentation that has been done. In this qualitative
research, the main data is in the form of words and actions. Unlike quantitative research, the
main data is in the form of numbers.Because action is part of the main data in qualitative
research.
Data Presentation
Data presentation is the stage of data analysis carried out by presenting qualitative data with
certain types or patterns of data that can be done in the form of charts, graphs, brief
descriptions, matrices, charts, and others. After the patterns compiled by researchers have
been supported by data, the pattern becomes a standard pattern which will then be presented
in the final report of the study.
Taking Conclusion
Taking conclusions and verification is the last step in the analysis of qualitative data in this
study. Withdrawal of conclusions is to draw a conclusion from the data that has been
collected and presented.Verification in this research is continued by reviewing or re-
correcting data records that have been obtained and the meaning that has been done to the
data.

4. RESULTS AND DISCUSSION

4.1. Contributions of PT Garuda Indonesia (Persero) Tbk. through the implementation
of GCG principles
Based on the results of interviews conducted with three interviewees consisting of one
person from the internal audit department, and two persons from the corporate governance
(CG) department and supported by the results of the study of documentation on the
implementation of GCG at PT Garuda Indonesia (Persero) Tbk. in fulfilling the applicable
regulations and in an effort to achieve the objectives of implementing the principles of good
governance in accordance with the Regulation of the State Minister for Badan Usaha Milik
Negara (BUMN) Number: SK-16/S.MBU/2012 Concerning Indicators/Parameters for
Assessing and Evaluating the Implementation of Good Corporate Governance in Badan
Usaha Milik Negara (BUMN).

The implementation of GCG principles is appropriate and becomes part of

the corporate culture in carrying out every business activity of PT Garuda Indonesia (Persero)
Tbk. In the implementation of GCG, PT Garuda Indonesia (Persero) Tbk. has developed a
system that describes how corporate governance is carried out (chart 1.2.) which focuses on
creating value added and consistent improvement based on three aspects.

1. Profit Aspect
Increase company revenue and streamline costs in providing economic benefits
to stakeholders,
2. Planet Aspect
Conduct activities that can support natural sustainability through CSR programs,
3. People Aspect
 Improve the quality of human resources to achieve sustainable performance and
provide good results.

These results are in accordance with the results of a study conducted by Pahlevi (2016)
where direction and evaluation were carried out continuously. The referral and evaluation
system implemented by PT Garuda Indonesia (Persero) Tbk. carried out alternately every
year through Self-assessment and through an Independent Agency outside the company. This
assessment is carried out based on Secretary Decree Copies of State-Owned Enterprises
Ministry Number: SK-16/S.MBU/2012 Concerning Indicators/Parameters for Assesing and
Evaluating Good Corporate Governance in State-Owned Enterprises.
Based on the Regulation of the State Minister for State-Owned Enterprises Number: Per-
01/MBU/2011, there are principles that regulate how corporate governance is carried out. The
following is the realization of PT Garuda Indonesia (Persero) Tbk. in order to
implement good corporate governance:
1. Realizatio of the principle of transparency
The company reports developments and achievements that have been achieved for
one reporting period or one year through an annual report. In its reporting,
the Annual Report has been carefully prepared, concurrently with all information
on the development of the company and is easy to access (through the company's
official website) and understood in accordance with the regulatory provisions
regulated by the Financial Services Authority Number: 29/POJK.04/2016.
2. Realization the principle of accountability
Every task and responsibility of each part of the company, especially the
company's organs, has been explained in detail in the Board Manual of Garuda
Indonesia. The company's management is carried out based on the Garuda
Indonesia Code of Business Ethics and Work Ethics.
3. Realization the principle of accountability
In carrying out CSR, the company focuses on community social empowerment
through partnership and community development programs. In its implementation,
the company distributes partnership and community development funds in
accordance with SOE Minister Regulation Number: 02 / MBU / 7 2017 and in
accordance with Garuda Indonesia PKBL Manual and increases the role of Garuda
branch offices in implementing PKBL and CSR programs because it has local
wisdom about each region. The company conducts monitoring and audits of each
of the company's social activities carried out by independent parties appointed by
the company. The results of social activities will be reported at the General
Meeting of Shareholders to be held accountable.
4. Realization of the principle of independence
In making decisions, the directors do not get any interversion from any party but
based on the interests of the company. Decisions taken by the Directors will
consider through:
 Studies conducted on the decision.
 Benefits to be gained from making these decisions.
 The obstacles or risks that will be faced in the future.
 5. Realization the principle of fairness
Provide fairness opinions when conducting transactions with subsidiaries to ensure
that transactions are in accordance with applicable regulations. The existence of
equal treatment by the company both to shareholders, customers, vendors and all
stakeholders in accordance with the benefits and contributions provided to the
company. Based on the description above, the contribution made by PT Garuda
Indonesia (Persero) Tbk. to the National Economy can be summarized as:

1. Contributions to other companies

Contributions made by PT Garuda Indonesia (Persero) Tbk. in line with the provisions of
the implementation of the principles of GCG regulated in the Regulation of the State Minister
for State-Owned Enterprises Number: Per 01/MBU/2011. PT Garuda Indonesia (Persero)
Tbk. apply GCG principles well. this is achieved by conducting an assessment and evaluation
every year. This evaluation and evaluation is carried out based on a copy of the Secretary
Decree of the Ministry of State-Owned Enterprises Number: SK-16/S.MBU/2012 concerning
Indicators/Parameters for Assessing and Evaluating the Implementation of Good Corporate
Governance in State-Owned Enterprises, as a guideline in assessment and evaluation of the
implementation of GCG principles for one period (1 Year).

Achievements in 2017
Governance aspects Weight %
Value
Achievement
1. Commitment to the implementation
7.00 6,708 95,833
of Sustainable Governance
2. Shareholders and GMS/Capital
9.00 8,834 98,590
Owners
3.Board of Commissioners/Supervisory
35.00 31,104 89,701
Board
4. Directors 35.00 33,088 95,733
5. Information Disclosure and
9.00 7,985 94,785
Transparency
6. Other aspects 5,00 3,750 75,000
7. Overall Score 100 92,764 92,764
Qualification of GCG Implementation Quality Very good

Based on the results of the assessment of the implementation of GCG based on SK-16 /
S.MBU/2012, PT Garuda Indonesia (Persero) Tbk. obtain Overall Score (92,764) with the
"Very Good" value category.
Based on the table above, it can be concluded that the company has fully committed to
the implementation of GCG in line with the company's vision and mission and has become a
work culture at PT Garuda Indonesia (Persero) Tbk. So that governance is owned by PT
Garuda Indonesia (Persero) Tbk. can be adapted by other companies to help other companies,
especially state-owned companies or companies engaged in similar fields in managing the
company well with the aim of increasing the company's contribution to the national economy.
In Table 4.2 . Corporate Governance Assessment point 6 (six) Other Aspects. Explained
in a copy of the Secretary Decree of the Ministry of State-Owned Enterprises Number: SK-
16/S.MBU/2012 concerning Indicators/Parameters for Assessing and Evaluating Good
Corporate Governance Implementation in State-Owned Enterprises, that there are two criteria
assessment such as:
 The company has an area / area that is the best practice in the industry or a benchmark
destination for other companies,
 There are deviations made by companies in the implementation of the principles of
Good Corporate Governance.
In its assessment, PT Garuda Indonesia (Persero) Tbk. get a score of 3.750 with a
percentage of achieving 75%, making GCG PT Garuda Indonesia (Persero) Tbk. can be
recommended to be adapted by other companies or made as a reference in improving
corporate governance.

2. GCG implementation in an effort to improve the national economy.

Based on the results of the library study and the results of the information given by the
interviewees through an interview at PT Garuda Indonesia (Persero) Tbk., Good GCG
implementation is not necessarily able to directly improve the national economy, but can be
planned and achieved if properly planned and implemented properly and consistent. If a
company applies good governance, the company's performance will be good. So the company
gained the trust of investors to invest in the company.
State Income from companies is obtained through taxes paid by companies, and profits
from state-owned enterprises that can be in the form of private receipts such as concessions
and public revenues. The government gives full trust to the company in paying its corporate
tax through self-assessment or by calculating the calculated taxes that must be paid by the
company. Supported by the principle of openness of Good Corporate Governance , where the
disclosure of information made by companies in publishing information is believed to be able
to increase tax revenue because it minimizes the possibility of tax evasion carried out by
companies. Then with the principle of openness, financial statements reported by the
company will be more trusted by the public so that it can increase the value of the company
through shares. The contribution given by BUMN in other state revenues is through the
distribution of BUMN profits or called stock dividends. In this context BUMN are assets
owned by the state so that the distribution of profits is considered a natural thing to do.
4.2. The Role of Internal Audit
Based on the results of interviews conducted with three speakers consisting of one
resource person from the internal audit section, and two resource persons from the corporate
governance (cg) sectionand supported by the results of the study of documentation on the
implementation of GCG at PT Garuda Indonesia (Persero) Tbk. in fulfilling the applicable
regulations and in an effort to achieve the objectives of implementing the principles of good
governance in accordance with the Regulation of the State Minister for State-Owned
Enterprises Number: Per-01/MBU/2011 in point 4 (four) mentioned that "Increasing the
contribution of BUMN in the Economy National". Implementation of GCG principles needs
to be monitored and controlled.
In conducting GCG monitoring and control activities using Internal Audit as a tool to
ensure that GCG has been carried out properly, through five components of control in
accordance with COSO to support control activities. According to COSO the five control
components are:
1. Internal Control Environment
 An important role carried out by Top Management in creating a good, conducive and
supportive work environment in carrying out the company's business activities in
accordance with the principles of GCG so that it can be carried out maximally.
2. Risk Assessment
Assess and analyze general risks and inherent risks that will be faced by the company
in making decisions in order to reach the goal.
3. Control Activities
Ensure that the implementation of GCG has been carried out in accordance with the
planning that has been carried out.
4. Information and Communication
Internal Audit ensures that the quality of information produced by the Information
System selected is relevant and easy to understand.
5. Monitoring
Internal Audit conducts continuous monitoring activities and conducts separate
evaluations of corporate governance.
Based on the information provided by the resource person in the Internal Audit field at
the time of the interview, the contribution provided by Internal Audit in encouraging the
implementation of GCG principles at PT Garuda Indonesia (Persero) Tbk. The role of
Internal Audit in supporting the implementation of GCG principles :
1. Principle of transparency
In encouraging the implementation of the corporate transparency of corporate
governance, Internal Audit ensures that every information regarding the company's
vision & mission, business objectives and strategies has been disclosed openly.
Internal Audit carries out its role as a companion to external auditors in providing
documents and data required by external auditors. Internal Audit ensures that
company units have periodically reported their performance (weekly, monthly,
quarterly, semester) and evaluated the performance of company units to remain
effective, efficient and in accordance with the provisions of GCG. Despite the
principle of Transparency, Internal Audit ensures that every employee is obliged to
maintain the confidentiality of company information contained in the Code of
Business Ethics and Work Ethics.
2. Principle of accountability
In encouraging the implementation of the company's GCG Accountability principles,
Internal Audit ensures that each unit has their respective duties through work
procedures including reporting performance. Internal Audit ensures that company
assets are utilized properly. Operational Reporting is one of them regarding reports on
aircraft utility. Contains the number of aircraft operating, flight flight hours, up to
aircraft maintenance costs. Internal Audit ensures that the Information Technology
used by the company has been running quickly, precisely and accurately by
considering aspects of Information Technology security and in accordance with the
business process needs of the company.
3. Principle of accountability
In encouraging the implementation of the principles of corporate GCG accountability,
Internal Audit ensures that every corporate responsibility is in accordance with
applicable regulations. Every activity related to corporate social responsibility will
be audited and reported at the AGM. Internal Audit provides support for activities in
the management and maintenance of the environment of the company by ensuring that
internal audits ensure that the use of natural resources can be carried out efficiently,
 effectively without interfering with the performance of the company. Those
activities include:
 Biopori
 Office Electricity Energy Conservation
 Fuel Conservation Program
 Earth Hour

4. The principle of independence

In encouraging the implementation of the principles of GCG Independence, Internal
Audit ensures that every decision taken by the company is based on the interests of
the company, ability or integrity owned by other parties, without any pressure from
outside the company or within the company itself (company organs). The control
implemented by the company is that every decision taken must go through the fit and
proper test assessment stage and be ratified by the signing of an integrity pact.
5. The principle of reasonableness
In encouraging the implementation of the principles of GCG Fairness and Equality,
Internal Audit ensures that the company's complaints system ( whistle blowing
system) runs well, receives reports of suspicions that occur to the company ( fraud) ,
analyzes reports, and follows up and evaluates the reports. Internal Audit ensures that
each employee gets the same treatment to be given the opportunity to contribute to the
company in accordance with their competencies.
Based on the above explanation can be concluded role of internal audit in supporting the
implementation of corporate governance principles have played well with ways to minimize
the risks to be faced by companies of any business activities conducted and compliance with
applicable regulations.

5. CONCLUSIONS AND RECOMMENDATIONS

5.1. CONCLUSION
Based on the discussion that has been explained regarding the implementation of GCG
principles to PT Garuda Indonesia, it can be concluded that:
1. The Role of Internal Audit in encouraging the implementation of Good
Corporate Governance at PT Garuda Indonesia (Persero) Tbk. has contributed very
well. The company can carry out its business activities in obtaining profits without
forgetting the applicable rules. This can be proven through the results of the
assessment of Good Corporate Governance with criteria in accordance with the
applicable provisions. Copies of Secretary Decrees of the Ministry of State-Owned
Enterprises Number: SK-16/S.MBU/2012 Concerning Indicators/Parameters for
Assessing and Evaluating the Implementation of Good Corporate Governance in
State-Owned Enterprises. Based on the results of the score assessment of PT Garuda
Indonesia (Persero) Tbk. classified as consistent where it is still above 90% or a very
good category, making it possible for other companies to adapt the implementation of
corporate governance PT Garuda Indonesia (Persero) Tbk. especially for BUMN.
2. Implementation principles of Good Corporate Governance PT Garuda Indonesia
(Persero) Tbk. does not contribute directly to national economic reconstruction in
accordance with the aim of implementing Good Corporate Governance "Increasing
the contribution of BUMN in the National Economy". Based on the results of the
interview, information was obtained that the Good Corporate Governance of PT
Garuda Indonesia (Persero) Tbk. can be planned, but cannot have a direct effect. The
 implementation of the principles of Good Corporate Governance can
increase shareholder and stakeholder trust in the company, so that the value of the
company's shares can increase.

5.2. SUGGESTION
Based on the results of the research, suggestions can be given by the writters in relation to
the implementation of Good Corporate Governance at PT Garuda Indonesia (Persero)
Tbk. are:
1. PT Garuda Indonesia (Persero) Tbk. It is better to conduct an evaluation related to
governance based on the Secretary Decree of the Ministry of State-Owned Enterprises
Number: SK-16/S.MBU/2012 concerning Indicators/Parameters of Assestment and
Evaluation of the Implementation of Good Corporate Governance in State-
owned Enterprise, especially in "Other Aspects" because of a decline in value from
the previous year and serve as an indicator that the governance of PT Garuda
Indonesia (Persero) Tbk. can help other companies in implementing the principles
of Good Corporate Governance through adaptation.
2. PT Garuda Indonesia (Persero) Tbk. It is better to educate subsidiaries to apply GCG
principles in accordance with the Regulation of the State Minister for State-Owned
Enterprises Number: Per 01/MBU/2011 and to evaluate subsidiaries regarding the
implementation of corporate governance so that the principles of GCG implemented
by subsidiaries can be implemented effectively.
3. For further research, it is expected to be able to develop research related to GCG in
private companies that are globally oriented so that they will provide another picture
related to the implementation of GCG and expand the range of data collection
to stakeholders .

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