Led by Pramudya A. Oktavinanda and Melati Siregar, we recently held another seminar for the Mining Industry Indonesia group on the implementation of business judgment rule (BJR) in State-Owned Enterprises (SOE) group corporate actions along with the new formulation of state losses applicable for SOE’s subsidiaries under the latest Supreme Court Circular Letter.

Given the ambiguities in Indonesian Anti-Corruption Law, there were numerous corruption cases involving SOEs group that mistakenly confound pure business decision making with corrupt intent and self-dealing. This major confusion adversely affects how SOEs run their business, increasing the costs of and slowing down SOEs in taking make-or-break decision; A huge problem in this competitive era, especially when SOEs are expected to expand their business significantly. Fortunately, recent positive trends in the understanding of BJR and the scope of state losses within Indonesian courts should provide SOEs with greater flexibility in their business decision making.

Throughout this seminar, we illuminate important guidelines that must be followed by SOEs to enjoy the protection given by BJR under Indonesian law and we hope that it could contribute to SOEs’s grand plan of becoming one of the main pillars of Indonesian economy!