THE EVALUATION OF THE IMPACT OF IMPROVING GCG QUALITY ON PT HOLDING X’S PERFORMANCE

• Main Author: Oktavida, Azariah
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/71374
• Institution: Institut Teknologi Bandung

Based on the Decree of the Minister of SOE No Kep-117/M-MBU/2002 dated July 31, 2002 concerning the Implementation of Good Corporate Governance Practices in State-Owned Enterprises it is stated that SOEs are required to implement GCG consistently and sustainably. PT Holding X as a subsidiary of the leading SOE in the field of information, technology, and telecommunicatipns in Indonesia are aware of the importance of implementing GCG. PT Holding X believes that by implementing GCG, the overall performance of the company will grow positively. Thus, the company decided to improve its GCG quality in period 2021. It’s found that the GCG Assessment score had increased from the previous 60,558% (moderate, period 2020) to 86,879% (very good, period 2021), yet the company has not conduct a full assessment on the impact of improving GCG quality on company performance. The goal of this research is to analyze the impact of increasing good corporate governance practices on performance at PT Holding X. Unlike previous studies that measured good corporate governance practices based on indexes, this study will look at good corporate governance practices based on Ministerial Regulation Number Per-01/MBU/ 2011 concerning the Implementation of Good Corporate Governance in State-Owned Enterprises which links the results of the GCG assessment and the company's achievements to the KPIs previously determined by the company. The next difference is that previous studies only used financial performance measures, this study will use performance measurements based on the four perspectives of the balanced scorecard. The balanced scorecard is a performance measurement tool that does not only look at it from a financial perspective, but also from a customer perspective, internal business processes, and learning and growth processes. The GCG indicators were also mapped into the balance scorecard perspectives to further analyzed the achievements impact on company’s performance. There was an increase in the quality of GCG at PT Holding X by 26.32% and an increase in the performance of PT Holding X by 14.72%. This score indicates that there is a positive impact from improving the quality of GCG on improving company performance, this results is in line with the expectation of the company based on previous research results.