Testing the Limits of Good Faith: The Consistency of Business Judgment Rule Standards in Criminal Adjudication Compared to Article 97(5) of the Indonesian Company Law (A Study of Supreme Court Decisions No. 121K/Pid.Sus/2020 and No. 1401K/Pid.Sus/2014)
DOI:
https://doi.org/10.38035/jlph.v6i5.3569Keywords:
Business Judgment Rule, Good Faith, Article 97(5) of UUPT, BUMN Directors, Legal CertaintyAbstract
This research compares Supreme Court Decision No. 121 K/Pid.Sus/2020 and Decision No. 1401 K/Pid.Sus/2014 to examine whether Indonesian courts apply a consistent standard of good faith under Article 97(5) of Law No. 40 of 2007 when the Business Judgment Rule is raised as a defense in criminal cases involving state-owned enterprise directors. Using a normative legal research method, this research finds that the two panels applied fundamentally different approaches, with neither decision applying all four conditions of Article 97(5). This inconsistency reveals that the provision offers no reliable protection in practice due to the absence of a written and measurable standard of good faith. This research recommends a legislative amendment to Article 97(5) and a formal Supreme Court ruling to ensure consistent application.
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