Historical Development of Good Corporate Governance in Indonesia (1998-2020): Government’s Role in Establishing the Regulatory Framework

Abstract

The issue of Good Corporate Governance (GCG) has developed over the centuries as a reaction to systemic crises or corporate failures. The well-documented failures of the Indonesian government are the 1997-1998 Asian financial crisis and the 2008 global financial crisis. Many experts regard Indonesia’s recession as driven by poor government oversight of the financial sector. This study aims to analyze the historical impact of GCG in Indonesia in the 1998-2020 period on government performance. This study employs Foucauldian archaeology and uses official government documents (laws and policies and their derivatives), books, journals, mass media articles (offline and online), and websites as data sources. The data analysis consists of several activities, including collecting, presenting, and inferring data. This study concludes that the development of GCG in Indonesia has increased from a regulatory perspective. However, the development of GCG in Indonesia impacts the government’s performance because there are still many problems in the practice of GCG in Indonesia. One of the problems is the Jiwasraya financial scandal. The Financial Scandal occurred due to the poor performance of the government, in this case, the Financial Services Authority (OJK), in supervising the insurance industry