*1.2. Corporate Governance in Indonesia*

In Indonesia, limited liability corporations are governed by Law No. 40 of 2007 on Limited Liability Companies (Company Law). The Company Law outlines the general responsibilities of a company's shareholders, boards of directors, boards of commissioners, employees, commercial partners, and the general public.

The Financial Services Authority (Otoritas Jasa Keuangan or OJK) additionally controls corporate governance for specific forms of organizations and companies. OJK regulations oversee corporate governance conditions for the financial sectors and public companies.

The Coordinating Ministry for Economic Affairs set up the National Committee on Governance (NGC) through the Decree of Coordinating Ministry for Economic Affairs No. KEP-49/M.EKON/11/TAHUN 2004. Subsequently, this ruling was revised by Coordinating Ministry for Economic Affairs Decree No. KEP-14/M.EKON/03/Year 2008. According to the NGC's stated mission, the Indonesian Code of Good Corporate Governance was formulated, promoted, and made easier to apply and enforce.

In 2006, the GCG Code was firstly issued. It was clearly stated that the GCG Code is not a lawful document and, intrinsically, corporations in Indonesia are not bound by it. The GCG Code is a methodology that gives corporate governance implementation guidelines for businesses [19].
