Director’s Liability For Losses in The Management of PT Merpati Nusantara Airlines as one of the State Owned Companies

DOI

10.2991/icss-18.2018.267How to use a DOI?

Keywords

corrupt practice, loss, state’s capital equity, state finance (PT Merpati SOE)

Abstract

This paper is about state’s capital equity in establishing State-owned Company (PT Merpati SOE). Under private law regime, PT Merpati SOE, is an equity that is a state asset allocated separately from the State Budget. Consequently, it is no longer a state asset; rather, it turns into a part of company assets. There is a case of a lease agreement of 2 (two) units of Boeing 737-400 and Boeing 737-500 between PT Merpati Nusantara Airlines with companies of Thirdstone Aircraft Leasing Group (TALG) United States cannot be prosecuted under Articles 2 and 3 of Act No. 31 of 1999 Jo Act No. 20 of 2001 on Eradication of Corrupt Practices Law. From this paper, three things are revealed. First, the state’s capital equity, which has been allocated separately from state assets in establishing the PT Merpati SOE which is not a state asset; rather, it is the company’s asset. Second, in case of mismanagement which leads to company loss, the Directors of PT Merpati SOE may not be charged for committing corrupt practice as prescribed in Articles 2 and 3 of Corrupt Practices Eradication Law. Third, misperception has been made by judicial practices since the courts consider loss in particular transaction made by Directors of PT Merpati SOE as a loss of state finance whose implication is applied in Articles 2 and 3 of Corrupt Practices Eradication Law.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Eny Suastuti
PY  - 2018/10
DA  - 2018/10
TI  - Director’s Liability For Losses in The Management of PT Merpati Nusantara Airlines as one of the State Owned Companies
BT  - Proceedings of the 1st International Conference on Social Sciences (ICSS 2018)
PB  - Atlantis Press
SP  - 1270
EP  - 1275
SN  - 2352-5398
UR  - https://doi.org/10.2991/icss-18.2018.267
DO  - 10.2991/icss-18.2018.267
ID  - Suastuti2018/10
ER  -