Conflict of Interest in Business Cooperation of Regional Owned Enterprises (BUMD) Using Regional Capital Participation with Third Parties in the Perspective of Criminal Law

DOI

10.2991/assehr.k.211130.008How to use a DOI?

Keywords

Local Government; BUMD; business cooperation; conflict of interest; criminal law

Abstract

BUMD is a business entity that all or most of its capital is owned by the region, and was established with the aim of providing benefits for the development of the regional economy in general, organizing public benefits in the form of providing quality goods and / or services for the fulfilment of the livelihood of the community according to conditions, characteristics, and the potential of the area concerned, based on good corporate governance. The process of equity participation is carried out in three steps, namely the planning stage, the implementation stage and the accountability stage. At these three stages in its implementation, the parties to the agreement have the potential to wedderrechtlikj and commit acts against the law that result in losses for BUMD. This study aims to analyse the criminal law aspects of conflicts of interest in business cooperation with Regional Owned Enterprises (BUMD) with third parties that cause losses. This study uses a normative juridical research method, the data used are primary data and secondary data. The results of the analysis are concluded: 1. The existence of conflicts of interest and losses arising from business cooperation using local government capital participation between BUMD and third parties cannot be qualified as criminal acts as long as the decision making and implementation of the cooperation is carried out in accordance with the business judgment rule and good corporate governance (GCG) 2. The relationship between conflicts of interest and the occurrence of losses in cooperation with third parties using regional capital participation funds is a crime if in the cooperation agreement between BUMD and the third party it can be assessed from the planning stage, implementation stage and accountability stage there is an element of error as one of an element in a crime.

Copyright

© 2021 The Authors. Published by Atlantis Press SARL.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Erma Rusdiana
PY  - 2021
DA  - 2021/12/03
TI  - Conflict of Interest in Business Cooperation of Regional Owned Enterprises (BUMD) Using Regional Capital Participation with Third Parties in the Perspective of Criminal Law
BT  - Proceedings of the International Joined Conference on Social Science (ICSS 2021)
PB  - Atlantis Press
SP  - 39
EP  - 45
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.211130.008
DO  - 10.2991/assehr.k.211130.008
ID  - Rusdiana2021
ER  -