Governance of Family Dynasties in Financial Institutions and Public Listed Companies

Abstract

The regeneration of a family firm is an exciting thing to discuss. The transition from one generation to the next is a topic of concern. Moreover, the family firms are a group of companies or conglomerate. Conglomeration influences the economy of a country. Good corporate governance has also become an issue that has attracted the attention of businesses in various countries. Good governance will have implications for the sustainability of firms in the long term. Family dynasties influence corporate governance. The Indonesian Financial Services Authority (/OJK) has established the Indonesian Financial Services Authority Regulation (POJK) on good governance for listed companies and financial institutions. However, POJK are still limited to general governance. Governance regarding the influence of family dynasties is still not regulated in the POJK. This research uses a normative judicial method. This research aims to discover how to control family dynasties in the corporate governance of financial institutions and public listed companies in Indonesia. This research concludes that the regulator needs to determine the parties that have a relationship in running a public firm or a financial services firm.