The Implementation of Good Corporate Governance in BUMD Institutions

Abstract

This study talks about how many Regional-Own Enterprises (BUMD) there are in the Indonesian economy. In this study, we look at the institutional aspects of BUMD, how BUMD helps the local economy, and how Good Corporate Governance (GCC) is used to run BUMD. The method used is to look at research articles from a variety of sources to learn about them. Government Regulation No. 54 of 2017 on Regional Owned Enterprises already has rules and regulations in place to make BUMD a legal entity that is owned by a regional government. This is because BUMD doesn't do a good job of running things, which means that the results haven't been able to generate new revenue that's equal to a big chunk of regional income. BUMD must be able to be run in accordance with Good Corporate Governance in order to make sure that local businesses are run properly and to help the region.