Analyzing the Implementation of Good Corporate Governance (Gcg) and Internal Control at State Owned Enterprises (Bumn)

Abstract

Organizations apply Good Corporate Governance (GCG) and internal control not only to increase high-satisfactory earnings by considering stakeholder interests, but also to improve shareholder and financial performance, reduce risk associated with self-interest, and increase investor confidence. State-Owned Enterprise (BUMN) is a business entity that covers various sectors such as agriculture, transportation, telecommunications, trade, electricity, finance, and construction. BUMN is required to implement good corporate governance and internal control consistently and sustainably as the operational foundation to improve corporate accountability in realizing shareholder value in the long term while taking into account the interests of stakeholders, others, and based on laws and regulations and ethical values. This study aims to examine the implementation of good corporate governance and internal control on the performances of State-Owned Companies (BUMN) in the financial sector listed on the Indonesia Stock Exchange (IDX) focusing on banking state-owned enterprises such as Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI), State Savings Bank (BTN), and Bank Mandiri. The research is exploratory in nature and focuses on good corporate governance, internal control, and BUMN performance. The findings are that good bank governance and internal control do not continuously impact the performance of Bank BRI and BTN, have a moderate impact on the performance of Bank Mandiri, and do not have a significant impact on the performance of Bank BNI.