Rechtsidee
Vol 10 No 2 (2022): December
Business Law

The Business Judgment Rule in a Progressive Legal Perspective: Essence and Implications in Indonesia
Business Judgment Rule dalam Perspektif Hukum Progresif: Esensi dan Implikasinya di Indonesia

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  • Wilda Shafira*,
  • Ananda Elena Nurul Izzah,
  • Primanadya Dian Pamella,
  • Nabila Ghina Dzakirah
Wilda Shafira
Magister Ilmu Hukum, Fakultas Hukum, Universitas Airlangga, Indonesia *
Ananda Elena Nurul Izzah
Magister Ilmu Hukum, Fakultas Hukum, Universitas Airlangga, Indonesia
Primanadya Dian Pamella
Magister Ilmu Hukum, Fakultas Hukum, Universitas Airlangga, Indonesia
Nabila Ghina Dzakirah
Magister Ilmu Hukum, Fakultas Hukum, Universitas Airlangga, Indonesia

(*) Corresponding Author
DOI: https://doi.org/10.21070/jihr.v11i0.790


Picture in here are illustration from public domain image or provided by the author, as part of their works
Published December 12, 2022
Keywords
  • Business Judgment Rule,
  • Business Law,
  • Progressive Law
How to Cite
Shafira, W., Izzah, A. E. N., Pamella, P. D., & Dzakirah, N. G. (2022). The Business Judgment Rule in a Progressive Legal Perspective: Essence and Implications in Indonesia. Rechtsidee, 10(2), 10.21070/jihr.v11i0.790. https://doi.org/10.21070/jihr.v11i0.790

Copyright (c) 2022 Wilda Shafira, Ananda Elena Nurul Izzah, Primanadya Dian Pamella, Nabila Ghina Dzakirah (Author)

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This work is licensed under a Creative Commons Attribution 4.0 International License.

 
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Abstract

The business judgment rule is a concept of business law to provide protection for the directors and commissioners of the company regarding liability due to decisions or policies that harm the company. This concept is important to realize creative and innovative directors in carrying out business practices. This study aims to explore the progressive legal aspects of the business judgment rule concept. This research is a normative legal research oriented to the study of the concept of business judgment rule and the theoretical study of progressive law. The primary legal materials in this study include: the 1945 Constitution of the Republic of Indonesia, the PT Law, and the POJK on the Board of Directors and Board of Commissioners of Issuers or Public Companies. Secondary legal materials include: the results of studies and research that discusses the concept of business judgment rule and progressive law. Non-legal materials include legal dictionaries. The results of the study confirm that the essence of the concept of business judgment rule is to optimize the effectiveness and efficiency of the company. This includes providing guarantees for protection and legal certainty for directors and commissioners regarding liability for company losses that can be excluded through the concept of a business judgment rule. The implications of the business judgment rule in the perspective of progressive law can be done by revising Article 97 paragraph (5) of the Limited Liability Company Law to guarantee the limits of the business judgment rule more specifically so as to ensure legal certainty, prioritizing human values ​​in progressive law as guiding values ​​in reading the formulation of Article 97 paragraph (5) PT Law, as well as the role of judges in court through their decisions to develop the concept of a business judgment rule in practice.

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