Implementation of Good Corporate Governance Principles in Commercial Banks

Abstract

This research was conducted to find out how the application of the principles of Good Corporate Governance by Bank Indonesia to Commercial Banks and what are the legal consequences if Commercial Banks do not apply the principles of Good Corporate Governance in carrying out banking activities. This research is a normative legal research with a statutory and conceptual approach and qualitative data analysis. The results obtained from research conducted were that the implementation of Good Corporate Governance at Commercial Banks by Bank Indonesia was caused by the economic and monetary crises that occurred in Indonesia in 1997-1999 due to the failure to apply Good Corporate Governance in every activity in the company and in banking and legal consequences. for Commercial Banks that do not apply Good Corporate Governance in their banking activities as stipulated in Bank Indonesia Regulation Number 8/14 / PBI / 2006 Article 69, namely administrative sanctions and No criminal sanctions for Commercial Banks that do not apply Good Corporate Governance in their banking activities.