LOSSES IN THE MANAGEMENT OF SUBSIDIARIES OF STATE-OWNED ENTERPRISES IN THE FORM OF LIMITED LIABILITY COMPANIES BASED ON THE DOCTRINE OF BUSINESS JUDGMENT RULE AND CIVIL LAW
Losses experienced in managing state-owned subsidiaries are not considered state losses but losses of the State-Owned Enterprises, as SOE subsidiaries are considered civil legal entities. Thus, there is a need to understand the legal responsibilities and principles governing management decision-making in SOE subsidiaries and the implications for state finances. This research is a normative legal research that uses legislative, conceptual, and comparative approaches. The object of research is legal norms relating to state financial losses in the management of BUMN subsidiaries in the form of PT, based on the doctrine of the Business Judgment Rule and civil law. Secondary data is obtained from literature studies. Data analysis is carried out qualitatively by describing the opinions of respondents and the results of literature studies descriptively and universally, using the inductive method to conclude from particulars to generalities by considering theoretical perspectives. The results show that losses in the management of BUMN subsidiaries in the form of PT require a cautious approach, with the doctrine of the Business Judgment Rule as a guideline for evaluating management decisions. Responsibility to shareholders, including the state, requires careful consideration of the interests of all parties. The principles of good corporate governance, transparency, accountability, and effective risk management are crucial to preventing undue losses.
SOEs, Business Judgement Rule Doctrine, Civil Law.