ojs2 has produced an error Message: WARNING: unlink(/var/www/html/ojs/cache/fc-pluginSettings-33-objectsforreviewplugin.php): No such file or directory In file: /var/www/html/ojs/lib/pkp/classes/cache/FileCache.inc.php At line: 57 Stacktrace: Server info: OS: Linux PHP Version: 5.6.32 Apache Version: Apache/2.4.29 (Unix) DB Driver: mysql DB server version: 5.7.44
The Business Judgment Rule in Corporate Law: A Comparative Study of Indonesia and Singapore | Gaol | Jurnal Pembaharuan Hukum

The Business Judgment Rule in Corporate Law: A Comparative Study of Indonesia and Singapore

Selamat Lumban Gaol

Abstract


The Business Judgement Rule (BJR) is a fundamental doctrine in corporate governance that provides directors with protection when making informed, good-faith business decisions, while maintaining accountability to shareholders. As jurisdictions develop distinct approaches to balancing managerial discretion and oversight, differences in BJR application significantly influence legal certainty, director liability, and shareholder protection. This study aims to compare BJR implementation in Indonesia and Singapore, focusing on legal frameworks, judicial interpretations, and their implications for corporate governance effectiveness. Using a normative juridical method with a comparative law approach, the analysis reveals Singapore’s robust BJR framework, supported by clear jurisprudence and strong governance practices that consistently protect prudent directors. Conversely, Indonesia faces challenges due to the absence of explicit BJR codification in the Limited Liability Companies Act and inconsistent judicial interpretations, leading to uncertainty in determining director responsibility. These contrasts arise from differing legal traditions and regulatory structures. The study concludes that Indonesia should strengthen its regulatory framework and promote judicial consistency to enhance the role of BJR in ensuring good corporate governance and balancing director responsibilities with shareholder rights.

Keywords


Business Judgement Rule; Corporate Governance; Director Liability; Shareholder Protection; Comparative Law

Full Text:

PDF

References


Journals:

Abhary, Hamid, Tahereh Mosavi Khatir, and Omolbanin Ramzanzadeh Badeli. "The Uniform Model of the Business-Judgment Rule: a Comparative Study in English, American, Australian and Iranian Law." Comparative Law Researches 28, no. 4 (2025): 31-62.

Achmad, Andyna Susiawati, and Astrid Athina Indradewi. "Hubungan Hukum Antar Perusahaan Dalam Sistem Perusahaan Grup Ditinjau Dari Undang-Undang Nomor 40 Tahun 2007 Tentang Perseroan Terbatas." Jurnal USM Law Review 4, no. 2 (2021): 470-483.

Afrilia, Dian, and Sayit Bandung Bondowoso. “Pertanggungjawaban Direksi BUMN Terhadap Kerugian Negara Berdasarkan Regulasi Pemerintahan Sektor Perusahaan Dan Pidana.” Lex Stricta: Jurnal Ilmu Hukum 4, no. 1 (2025): 13-22.

Aji, Ahmad Mukri, Syarifah Gustiawati Mukri, dan Gilang Rizki Aji Putra. “Implementasi Harmonisasi Akad Perbankan Syariah dengan Hukum Positif di Indonesia.” Mizan: Jurnal Hukum Islam 6, no. 2 (2022): 267-268

Akram, Muhamad Hafizh, and Nisriina Primadani Fanaro. "Implementasi Doktrin Business Judgement Rule di Indonesia." Ganesha Law Review 1, no. 1 (2019): 77-87.

Azheri, Busyra, and Upita Anggunsuri. "The implementation of business judgment rule principle in managing the company." Nagari Law Review 3, no. 2 (2020): 32-44.

Beebeejaun, Ambareen, and Pramod Bissessur. "The Business Judgment Rule as a Protective Armor for Directors’ Responsibilities: A Comparative Study Among Mauritius, United Kingdom, and United States." Statute Law Review 45, no. 2 (2024): hmae028.

Chua, Lynette J. “Constitutional interpretation and legal consciousness: Out of the courts and onto the ground.” International Journal of Constitutional Law 20, no. 5 (2022): 1937-1957.

Darmawangsa, Williem. "Interpretasi Yang Salah Mengenai Business Judgment Rule Pada Substansi Dan Struktur Hukum Di Indonesia." Unes Law Review 5, no. 3 (2023): 1356-1368.

Dharsana, P. I. M., Indrasari Kresnadjaja, and I. Putu LINGGA Dhananjaya. "Application of the business judgment rule doctrine in Indonesian companies." Journal of Public Administration, Finance and Law 27 (2023): 381-388.

Firmansyah, Amir, Aris Machmud, and Suparji Suparji. “Peran BUMN sebagai Pilar Utama Ekonomi Nasional yang Mandiri: Sebuah Kajian Hukum Korporasi.” Binamulia Hukum 13, no. 2 (2024): 517-528.

Grasia Kurniati, S. H. "Studi Perbandingan Penyelesaian Sengketa Bisnis dan Implementasinya Antara Lembaga Badan Arbitrase Nasional Indonesia dan Singapore International Arbitration Centre." Jurnal Ilmiah Hukum DE'JURE: Kajian Ilmiah Hukum 1, no. 2 (2016): 201-234.

Habibie, Muhammad Mirza, Yuliani Catur Rini, and Kartika Winkar Setya. “Business Judgment Rule in the Amendment of the State-Owned Enterprises Law.” Jurnal Hukum In Concreto 4, no. 2 (2025): 271-285.

Hamidin, Siswantari Pratiwi, Hartanto, “Analisis Penerapan Prinsip Business Judgment Aturan Terkait Dengan Pertanggung Jawaban Pidana Pada Direksi Badan Usaha Milik Negara (BUMN),” YUSTISI 11, no. 2 (2024): 343–57.

Hidayat, Beni Darmawan, and Muhamad Hasan Sebyar. “Implikasi Hukum Perpindahan Pengawasan Aset Kripto dari Bappebti ke OJK terhadap Pelaku Industri dan Investor:(A Comparative Study).” Hakim: Jurnal Ilmu Hukum dan Sosial 2, no. 4 (2024): 888-899.

Januarsyah, Mas Putra Zenno, Dwidja Priyatno, Agung Sujati Winata, and Khairul Hidayat. “Penerapan Doktrin Business Judgment Rule Dalam Perkara Tindak Pidana Korupsi Karen Agustiawan.” Jurnal Ius Constituendum 7, no. 1 (2022): 143.

Kamilah, Anita, and Trini Handayani. "The Application of Business Judgment Rule Principles: The Protection for State-Owned Enterprises Directors to Business Risk Failure." UNIFIKASI: Jurnal Ilmu Hukum 8, no. 1 (2021): 18-27.

Kasim, Helmi. “Memikirkan Kembali Pengawasan Badan Usaha Milik Negara Berdasarkan Business Judgement Rules.” Jurnal Konstitusi 14, no. 2 (2017): 440-462.

Kasma, Juan, and Christian Andersen. "Business Judgment Rule and Corporate Governance as the Strategic Imperative of Indonesian State-owned Enterprise." European Journal of Law and Political Science 3, no. 4 (2024): 51-58.

Kuswandi, Kuswandi, Yudi Junadi, and Aulia Putri. “Penerapan Prinsip Business Judgement Rule Dalam Putusan Lepas Terkait Tindak Pidana Korupsi Direktur Korporasi.” Jurnal Hukum Mimbar Justitia 8, no. 2 (2022): 509-534.

Lumban Gaol, Selamat. “Business Judgment Rule Sebagai Alasan Penghapus Pertanggungjawaban Pidana Pribadi Direksi Perseroan Terbatas Dalam Pengambilan Kebijakan Bisnis Yang Menimbulkan Kerugian Bagi Perseroan Terbatas Di Luar KUHP.” Jurnal Ilmiah Hukum Dirgantara 11, no. 2 (2021): 21-43.

Muninggar, Roro Ajeng, and Rosdiana Saleh. "Perbandingan sistem hukum Indonesia dan Australia tentang pengaturan pertimbangan bisnis (business judgement)." UNES Law Review 6, no. 3 (2024): 9104-9113.

Narendra, Satwika, Gde Made Swardhana, and Diah Ratna Sari Hariyanto. “Pertanggungjawaban Korporasi Berdasarkan Kesalahan Menurut Hukum Pidana.” J-CEKI: Jurnal Cendekia Ilmiah 3, no. 5 (2024): 5290-5303.

Pearlie, K. O. H., and Hwee Hoon Tan. “Directors’ Duties in Singapore: Law and Perceptions.” Asian Journal of Comparative Law 14, no. 1 (2019): 37-63.

Priyono, Eko, Agus Surono, and Sadino Sadino. “Doktrin business judgment rule dalam memberikan perlindungan hukum kepada direksi bumn (studi kasuS PT. PLN).” Jurnal Magister Ilmu Hukum: Hukum dan Kesejahteraan 7, no. 2 (2022): 29-43.

Santiago, Faisal. "Reconstruction of the Business Judgment Rule Doctrine in Indonesia: Legal Comparison with England, Canada, the United States, and Australia." Jurnal IUS Kajian Hukum Dan Keadilan 12, no. 1 (2024): 107-121.

Saragih, Geofani Milthree. “A Judges’ Role in Pursuing Justice: Oliver Wendell Holmes’ Sociological Jurisprudence Perspective.” International Journal of Law Society Services 3, no. 2 (2024): 58-66.

SD, I. Gusti Putu, and M. Nasir Majid. “Optimising green industry development to strengthen the national economy.” Jurnal Lemhannas RI 12, no. 3 (2024): 373-390.

Setiawati, Anisa Deny, and Mokhamad Gisa Vitrana. “Doktrin Business Judgment Rule dalam UU BUMN: Batas Tanggung Jawab Direksi dalam Tindak Pidana Korupsi.” Jurnal Rechten 14 no.1 (2025): 155-170.

Shafira, Wilda, Ananda Elena Nurul Izzah, Primanadya Dian Pamella, and Nabila Ghina Dzakirah. "The business judgment rule in a progressive legal perspective: Essence and implications in Indonesia." Rechtsidee 10, no. 2 (2022): 10-21070.

Sudarna, Sudarna. "Penerapan Business Judgement Rule Terkait Dengan Keputusan Direksi PT BUMN." Lex Stricta: Jurnal Ilmu Hukum 3, no. 3 (2025): 193-210.

Sugiarto, Sugiarto, Sapta Eka Yanto, Sudiyanto Sudiyanto, Panji Riyadi, Purnomo Purnomo, Royan Siagian, and Zainal Arifin Hosein. "Comparative Analysis of Business Judgment Rules in Civil Law and Common Law Systems." Mandub: Jurnal Politik, Sosial, Hukum Dan Humaniora 2 (2024): 151-64.

Susanty, Ade Pratiwi. "Tanggung Jawab Perusahaan Swasta Terhadap Negara Berdasarkan Undang-Undang Nomor 40 Tahun 2007 Tentang Perseroan Terbatas." Jotika Research in Business Law 1, no. 1 (2022): 1-11.

Syaflizar, Larassati Putri. “Business Judgment Rule: Sebuah Prinsip Tanggung Jawab Direksi Atas Kerugian Dalam Pengelolaan Bumn (Persero).” Jurnal Privat Law 11, no. 1 (2023): 140-152.

Wan, Trevor TW. “Unshackling from Shadows of the Anisminic Orthodoxy: Reconceptualising Approaches to Ouster Clauses in Hong Kong.” Asian Journal of Comparative Law 19, no. 2 (2024): 369-395.

Wang, Chen, and Ke Xu. "Toward Digital Corporate Law: Revisiting Corporate Law's Responses to Technology." William & Mary Business Law Review 17, no. 1 (2025): 123.

Wijayanto, Budi Tri, and Siska Dwi Andini. "Menguji Batas Business Judgement Rule: Studi Kasus Pengembangan Bisnis Lng PT Pertamina di Amerika Serikat." Jurnal Syntax Admiration 5, no. 12 (2024): 5256-5266.

Books:

Ali, Zainuddin. Metode Penelitian Hukum. Jakarta: Sinar Grafika, 2014.

Elisabeth, Nurhaini. Metode Penelitian Hukum. Bandung: Refika Aditama, 2018.

Multazam, Mochammad Tanzil, Noor Fatimah Mediawati, and Sri Budi Purwaningsih. Buku Ajar Hukum Perusahaan. Sukoharjo: Umsida Press, 2023.

Surya, Indra, and Ivan Yustiavandana. Penerapan Good Corporate Governance: mengesampingkan hak-hak istimewa demi kelangsungan usaha. Jakarta: Kencana, 2006.

Proceedings:

Gusnia, Gusnia, Etika Khairina, and Timbul Dompak. “Implementasi Good Corporate Governance Penguatan BUMN Dalam Perlindungan Keuangan Negara.” In Prosiding Seminar Nasional Ilmu Sosial dan Teknologi (SNISTEK), vol. 5, pp. 188-191. 2023.

Dissertation:

Gaol, Selamat Lumban. “Rekonstruksi Regulasi Business Judgement Rule Sebagai Alasan Penghapus Pertanggungjawaban Pidana Pribadi Direksi Perseroan Terbatas Dalam Pengambilan Kebijakan Bisnis Yang Menimbulkan Kerugian Bagi Perseroan Terbatas Berbasis Nilai Keadilan.” PhD diss., Universitas Islam Sultan Agung, 2022.




DOI: https://dx.doi.org/10.26532/jph.v12i3.48196

Refbacks

  • There are currently no refbacks.


License URL: https://creativecommons.org/licenses/by/4.0

Jurnal Pembaharuan Hukum Indexed by :

google_scholar onesearch crossref garuda base dimension DOAJ sinta
Jurnal Pembaharuan Hukum  
Faculty of Law, UnissulaCopyright of Jurnal Pembaharuan Hukum
Jalan Kaligawe Raya KM.4, Terboyo Kulon, Genuk,ISSN 2580-3085 (Online) ISSN 2355-0481 (Print)
Semarang, Central Java, Indonesia, 50112JPH is licensed under a