KPK Agrees That The State-Owned Enterprises Bill Should Include Business Judgment Rule Provisions, Here’s Why

The Deputy Chairman of the Corruption Eradication Commission (KPK), Fitroh Rohcahyanto, supports the inclusion of the Business Judgement Rule (BJR) in the draft law concerning State-Owned Enterprises (BUMN). He believes that all law enforcement officials must exercise caution when applying Articles 2 and 3 of the Law on Corruption Crimes. Fitroh, who has a background as a prosecutor, emphasized that law enforcement must ensure there is malicious intent when enforcing these articles. Articles 2 and 3 of the Corruption Law state that corruption involves not only personal enrichment but also actions that harm others or corporations, potentially affecting the country's finances or economy.

"I agree that we must be very careful in applying Articles 2 and 3, especially in business matters. There must be clear malicious intent, not just losses being labeled as corruption," Fitroh stated during a phone interview on Monday (February 3, 2025).

Previously, the DPR and the government were discussing the BUMN draft law, which includes the Business Judgement Rule. Eko Hendro Purnomo, the Chairman of the BUMN Draft Law Working Committee, noted that the BJR, which protects the authority of directors in decision-making, is receiving special attention. According to the Kemenkeu Learning Center, the Business Judgement Rule is a legal principle derived from common law in the United States.

The BJR protects directors from legal action resulting from their business decisions. An example of BJR in action is the case involving PT Pertamina and its import cooperation agreements. Thanks to BJR protection, Karen Setiawan, the then-President Director of PT Pertamina, was not held legally accountable. The Working Committee's report on the BUMN draft law indicates that discussions will move forward to the second stage or decision-making in the plenary meeting next week.

Tag: Business Judgement Rule Corruption Eradication Commission KPK