Ambiguity of Financial Management Supervision in State-Owned Enterprises of the Company

DOI

10.2991/978-2-494069-65-7_54How to use a DOI?

Keywords

Financial Audit Board; Supervision of financial management; State-Owned Enterprises of the Company

Abstract

The Unitary State of the Republic of Indonesia has the main goal of realizing the welfare of the community as a welfare-type state that focuses on equalizing the welfare of people's lives. The state is required to play an active role in creating equitable community welfare, one of which plays a role in economic development. The arrangement of the separated state financial position that becomes capital in the State-Owned Enterprises of the Company is very important for the development of the country's economy. The state as one of the actors of economic development, in achieving the welfare of the people. In achieving these goals, regulations or constitutions are needed for the regularity of a country in achieving its goals. The implementation of the duties of State-Owned Enterprises is regulated by Law No. 19 of 2003 concerning State-Owned Enterprises, Article 11 is also regulated that the Company’s State-Owned Enterprises are subject to the Limited Liability Company Law now is Law No. 40 of 2007 concerning Limited Liability Companies. The problem is the ambiguity of the implementation of supervision/examination from the Financial Audit Agency of the State-Owned Enterprises of the Company, which resulted in many Directors of State-Owned Enterprises of the Company being entangled in corruption cases because they are suspected to have caused state losses, due to the ambiguity of the examination/supervision of the Financial Audit Board on the finances of the State-Owned Enterprises of the Company. This research is carried out normatively, namely using applicable laws and regulations. The purpose of the research is to find out how the supervision/examination of the Financial Audit Board on financial management in the State-Owned Enterprises of the Company based on laws and regulations. Ambiguity occurs because of two regulations governing the supervision of financial management of State-Owned Enterprises, namely in the Limited Liability Company Law and the Financial Audit Board Law.

Copyright

© 2022 The Author(s)

Open Access

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TY  - CONF
AU  - Reni Anggriani
PY  - 2022
DA  - 2022/12/24
TI  - Ambiguity of Financial Management Supervision in State-Owned Enterprises of the Company
BT  - Proceedings of the International Conference on Sustainable Innovation on Humanities, Education, and Social Sciences (ICOSI-HESS 2022)
PB  - Atlantis Press
SP  - 660
EP  - 671
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-65-7_54
DO  - 10.2991/978-2-494069-65-7_54
ID  - Anggriani2022
ER  -