Analyzing Directors and Commissioners Roles, Liabilities, and Compliance Trends in Indonesian Private Companies
Keywords:
corporate governance, directors and commissioners accountability, fiduciary duty, risk management in private companies, Indonesian corporate lawAbstract
This study examines the responsibilities and liabilities of directors and commissioners in Indonesian Private Companies, focusing on implementing corporate governance principles. Quantitative data indicates a consistent increase in compliance with commissioners recommendations, rising from 72% in 2020 to 85% in 2023, alongside a notable decline in litigation cases and a substantial rise in training expenditures. Qualitative analysis using NVivo reveals dominant themes such as the enforcement of fiduciary duties and effective governance implementation, although challenges remain in risk mitigation and oversight consistency. The findings highlight the positive impact of enhanced training and risk management on reducing legal disputes and improving governance quality. The study concludes with recommendations for strengthening supervisory mechanisms, continuous education, and adopting advanced risk management systems to ensure sustainable corporate governance. These insights contribute significantly to the discourse on governance accountability in emerging markets, offering practical implications for regulatory bodies and stakeholders seeking to enhance corporate transparency and accountability in Indonesia.
References
Agata, A. C., Suhartini, D., & Widoretno, A. A. (2021). The Influence of Corporate Social Responsibility and Conflicts of Interest on Accounting Conservatism with Litigation Risk as a Moderator. Equilibrium Journal of Scientific Economics, Management, and Accounting, 10(2). https://doi.org/10.35906/je001.v10i2.776
Ahmad, I., Usman, A., Iqbal, K., & Rehman, S. (2021). Estimando los Impactos de la Gobernanza Corporativa en el Desempeño Financiero de las Empresas No Financieras de Bangladesh. Journal of Engineering and Applied Sciences, 40(1). https://doi.org/10.17582/journal.jeas/40.1.78.90
Arif, K., Isa, C. R., & Mustapha, M. Z. (2023). Una revisión de la estructura de gobernanza corporativa de Pakistán. Journal of Independent Studies and Research Management Social Science and Economics, 21(2), 41–58. https://doi.org/10.31384/jisrmsse/2023.21.2.3
Asah, S., & Fadillah, H. (2024). Corporate Governance in the Sundanese Philosophy of Silih Asah, Asih, Asuh. Unsurya Business & Accounting Journal, 9(1). https://doi.org/10.35968/jbau.v9i1.1173
Basumatary, D., & Sar, A. K. (2025). Alineando la Gobernanza Corporativa con los Objetivos de Desarrollo Sostenible. Revista India de Gobernanza Corporativa, 18(1), 132–162. https://doi.org/10.1177/09746862251323019
Chen, F., Li, Q., & Xu, L. (2021). Leyes Universales de Demanda y la Demanda de Monitoreo para la Conservaduría Contable. Revista de Finanzas y Contabilidad Empresarial, 48(7–8), 1246–1289. https://doi.org/10.1111/jbfa.12514
Damayanti, A., Ulupui, I. G. K. A., & Muliasari, I. (2023). The Influence of Corporate Governance on Integrated Reporting. Journal of Taxation and Auditing Accounting, 3(3), 744–765. https://doi.org/10.21009/japa.0303.12
Dewi, A. P., Widyastuti, T., Maidani, M., & Nilasari, P. (2024). The Influence of Financial Performance and Good Corporate Governance Mechanisms on the Disclosure of Sustainability Reports in Banking Sector Companies Listed on the Indonesia Stock Exchange. Sentri Journal of Scientific Research, 3(2), 782–797. https://doi.org/10.55681/sentri.v3i2.2325
Edi, E., & Felicia, F. (2022). Analysis of the Influence of Corporate Governance on the Performance of Companies Listed on the Indonesia Stock Exchange for the Period 2016-2020. Jesya (Journal of Economics & Sharia Economics), 5(1), 613–624. https://doi.org/10.36778/jesya.v5i1.597
Fitriani, F., & Pangiuk, A. (2022). The Influence of Financial Distress, Institutional Ownership, Litigation Risk, and Company Size on Sharia Accounting Conservatism. Jurnal Syntax Admiration, 3(7), 869–879. https://doi.org/10.46799/jsa.v3i7.454
Herlina, H., Aziza, N., & Ilyas, F. (2021). Determinants of Social and Environmental Responsibility Disclosure Policies. Fairness Journal, 6(2), 83–96. https://doi.org/10.33369/fairness.v6i2.15128
Husna, G. A., Yuhertiana, I., & Susilowati, E. (2023). The Influence of Good Corporate Governance on ESG Disclosure and Company Performance in State-Owned Enterprises Listed on the Indonesia Stock Exchange for the Period 2018-2022. Journal of Social and Science, 3(12), 1235–1252. https://doi.org/10.59188/jurnalsosains.v3i12.1091
Kamal, M., & Widiastuty, E. (2023). The Role of Mediation of the Extent of CSR Website Disclosure on the Influence of Governance Structure on Company Reputation. Journal of Financial Accounting and Accounting Information Technology, 4(2), 203–213. https://doi.org/10.36085/jakta.v4i2.6053
Mamonto, M. A. W. W. (2021). Reformulation of Corporate Responsibility Regulations as an Effort to Fulfill the Right to a Healthy Environment. Pleno Jure, 10(1), 9–24. https://doi.org/10.37541/plenojure.v10i1.530
Mattunruang, A. A., & R, R. W. (2023). Characteristics of the Board of Commissioners, Corporate Social Responsibility, and Corporate Financial Performance. Journal of Economics and Business Ubs, 12(3), 1643–1656. https://doi.org/10.52644/joeb.v12i3.252
Nafia, N. H. (2023). The Effect of Corporate Management Systems on the Value of Property and Real Estate Sub-Sector Companies Listed on the Indonesia Stock Exchange from 2016-2020. E M O R Scientific Journal of Management, 6(2), 203. https://doi.org/10.32529/jim.v6i2.1678
Naukoko, P. A., Sutrisno, T., Nurkholis, N., & Saraswati, E. (2023). Corporate Governance and the Quality of CSR Disclosure. Manado Accounting Journal (Jaim), 476–486. https://doi.org/10.53682/jaim.vi.7300
Nima, I. M., Assmaningrum, N., Jody, E. S., Nurhandayani, A., & Atriani, D. (2024a). The Responsibilities of the Board of Directors in Limited Liability Companies: Implementation of Good Corporate Governance (GCG) Principles. Ijlj, 1(4), 9. https://doi.org/10.47134/ijlj.v1i4.2679
Nima, I. M., Assmaningrum, N., Jody, E. S., Nurhandayani, A., & Atriani, D. (2024b). The Responsibilities of the Board of Directors in Limited Liability Companies: Implementation of Good Corporate Governance (GCG) Principles. Ijlj, 1(4), 9. https://doi.org/10.47134/ijlj.v1i4.2679
Noer, M. H. G., & Handoko, W. (2022). Implementation of the Business Judgment Rule (BJR) Principle by the Board of Directors at PT. Tirta Amarta Bottling Company. Notarius, 16(3), 1392–1407. https://doi.org/10.14710/nts.v16i3.42045
Nugraha, A. F., Gaol, C. S. A. L., Chalid, M., Akbar, G. M. H. H., & Aqoma, H. (2024). Mejorar la compatibilidad de los residuos plásticos multicapa de bajo valor en mezclas de betún utilizando plasma frío atmosférico y oxidación térmica. Fabricación Avanzada: Ciencia de Polímeros y Compuestos, 10(1). https://doi.org/10.1080/20550340.2024.2375929
Oh, H.-M., & Park, S. (2022). ¿Afecta la Gobernanza Corporativa la Eficiencia de la Inversión Laboral? Sostenibilidad, 14(8), 4599. https://doi.org/10.3390/su14084599
PIERITSZ, L. R. (2021). The Role of Corporate Governance and Corporate Social Responsibility in Earnings Management. Abis Accounting and Business Information Systems Journal, 9(2). https://doi.org/10.22146/abis.v9i2.65908
Prakoso, S. T., Amalina, N. D., Perdana, T. A., & Danuri, A. (2023). Analysis of the Impact of Manager Overconfidence with Corporate Governance Mechanisms on Performance in Manufacturing Companies. Minfo Polgan Journal, 12(2), 2039–2050. https://doi.org/10.33395/jmp.v12i2.13133 Ramadana, M., Irawan, H., & Butar-Butar, D. T. M. (2023). The Influence of Tax Avoidance and Corporate Governance on Earnings Management with Social Responsibility as a Moderating Variable. Akurasi Journal of Accounting and Finance Studies, 6(2), 437–460. https://doi.org/10.29303/akurasi.v6i2.431
Rodríguez, G. M. (2023). Impacto del liderazgo en la responsabilidad social corporativa en México. International Journal of Leadership and Governance, 3(1), 1–12. https://doi.org/10.47604/ijlg.1924
Senbet, C. A. (2022). Efecto de las Prácticas de Gobernanza Corporativa en el Rendimiento de las Empresas Manufactureras en Irlanda. Journal of Public Policy & Governance, 6(1), 1–10. https://doi.org/10.53819/81018102t5045
Serly, S., Susanto, A., & Fedelia, J. (2023). The Influence of Corporate Governance on Company Performance with Ownership Structure as a Moderating Variable. Reviu Akuntansi Dan Bisnis Indonesia, 7(2), 496–515. https://doi.org/10.18196/rabin.v7i2.20165
Sihono, A., & Febyansyah, A. (2023). Tax Avoidance and Tax Risk: The Moderating Role of Corporate Governance. Indonesian Accounting and Business Review, 7(1), 1–16. https://doi.org/10.18196/rabin.v7i1.16631
Sipayung, B. (2023). The Influence of Financial Management, Risk Management, Corporate Governance, on Company Value at PT. XYZ. Sanskara Accounting and Finance, 1(03), 153–162. https://doi.org/10.58812/sak.v1i03.104
Siregar, D. H. (2022). Implementation of the Fiduciary Duty Principle on the Decisions of the Board of Directors of Limited Liability Companies in Bankruptcy in Indonesia. Journal of Social Science and Humanities, 6(2), 150–158. https://doi.org/10.22437/jssh.v6i2.22903
Tunggala, S., Saadjad, K. A., & Raintama, D. R. (2024). Participatory Communication to Reduce Environmental Impact from Mining Activities in Morowali. Jurnal Iso Jurnal Ilmu Sosial Politik Dan Humaniora, 4(1), 12. https://doi.org/10.53697/iso.v4i1.1774
Ulum, S. N., & Suryatimur, K. P. (2022). Analysis of the Role of Internal Control Systems and Good Corporate Governance in Fraud Prevention Efforts. Jurnal Ilmiah Akuntansi Kesatuan, 10(2), 331–340. https://doi.org/10.37641/jiakes.v10i2.1328
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Andi Firmansyah, Fathul Ba'ari (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
This work is licensed under a 