Good Corporate Governance in Law No. 1 Year 2025 in the Prevention of Corruption Crime

Research shows there's a high levels of corruption in Indonesia's state-owned enterprises (SOEs), with 108 cases in the last five years causing significant state losses. Law No. 1/2025 (SOE Law No. 1/2025), specifically Article 9F, introduces the Business Judgment Rule (BJR) to protect directors from criminalization for legitimate business decisions, although it does not provide absolute immunity. Good Corporate Governance (GCG), which encompasses transparency, accountability, responsibility, independence and fairness, is essential to enhance stakeholder trust and prevent corruption. Balancing BJR and GCG ensures legal protection does not become impunity, as BJR alone is not enough to fight corruption. Effective governance and careful oversight are essential to promote SOEs with integrity and professionalism. Future research should conduct empirical studies with SOE stakeholders to explore the application of GCG and BJR and their integration to improve governance.