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Keberadaan PP-3/1983 dan Tuntutan Perubahan Manajemen BUMN dalam Menghadapi Globalisasi Ekonomi

Author

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  • I Ketut Marjana

    (Faculty of Economics University of Indonesia)

Abstract

Both theoritical and empirical findings supports the views that excessive government control on state-owned enterprise (SOEs) could lead to management inefficiencies by suppressing management initiative and innovation This article reviews the extent of government control over SOEs in Indonesia, as is stipulated in Government Law No. 3/1983 (PP 3/1983). The author finds that this taw has created a rigid and excessive control mechanism. By creating confusion amongst SOEs management, this taw leads to the creation of high agency costs. Since most SOEs operate in upstream industries, this inefficiency spills over other sectors of the economy.

Suggested Citation

  • I Ketut Marjana, 1994. "Keberadaan PP-3/1983 dan Tuntutan Perubahan Manajemen BUMN dalam Menghadapi Globalisasi Ekonomi," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 42, pages 83-97, Januari.
    • Handle: RePEc:lpe:efijnl:199403
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    Keywords

    government; manajement; BUMN;
    All these keywords.

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