Should Indonesia adopt a Stewardship Code?
DOI:
https://doi.org/10.19184/ejlh.v12i1.51890Abstract
Shareholder stewardship has rapidly become a popular concept among policymakers, companies, and investors around the world. On its first release in 2010, the inaugural United Kingdom stewardship code was primarily targeted to incentivize institutional investors to be actively engaged as “stewards” in the corporate governance of companies in which they are shareholders. In Southeast Asia, Singapore has adopted separate stewardship codes for institutional investors and family companies. This article aims to explore if Indonesia should adopt a Stewardship Code like the above codes in Singapore and, if yes, how these codes should be adopted in Indonesia.
Keywords: Shareholder stewardship, Stewardship code, Corporate governance.
Downloads
References
Indonesia, Government Regulation No 10 of 2025 on Organization and Governance of Badan Pengelola Investasi Daya Anagata Nusantara, LN No 26, TLN No 7098 2025.
———, Law No 1 of 2025 on the Third Amendment of Law No 19 of 2003 concerning State-Owned Enterprises, LN No 25, TLN No 7097 2025.
Corporation, International Finance, Indonesia Corporate Governance Manual, 2nd ed (International Finance Corporation, 2021).
Puchniak, Dan W, Multiple Faces of Shareholder Power in Asia (Cheltenham: Edward Elgar Publishing, 2015).
Bebchuk, Lucian A, Alma Cohen & Scott Hirst, “The Agency Problems of Institutional Investors” (2017) 31:3 Journal of Economic Perspectives 89–102.
Cheffins, Brian R, “The Stewardship Code’s Achilles’ Heel” (2010) 73:6 The Modern Law Review 1004–1025.
Cheng-Han, Tan, Dan W Puchniak & Umakanth Varottil, “State-Owned Enterprises in Singapore: Historical Insights Into a Potential Model for Reform” (2015) 28:2 Columbia Journal of Asian Law.
Goto, Gen, Alan Koh & Dan Puchniak, “Diversity of Shareholder Stewardship in Asia: Faux Convergence” (2020) 53:3 Vanderbilt Journal of Transnational Law 829.
Hill, Jennifer, “Good Activist/Bad Activist: The Rise of International Stewardship Codes” (2018) 41:2 Seattle University Law Review 497.
Katelouzou, Dionysia & Dan W Puchniak, “Global Shareholder Stewardship: Complexities, Challenges and Possibilities” in Dan W Puchniak & Dionysia Katelouzou, eds, Global Shareholder Stewardship (Cambridge: Cambridge University Press, 2022) 3.
Lan, Luh Luh & Umakanth Varottil, “Shareholder empowerment in controlled companies: the case of Singapore” in Research Handbook on Shareholder Power (Cheltenham: Edward Elgar Publishing, 2015) 572.
Lim, Ernest & Dan W Puchniak, “Can a Global Legal Misfit Be Fixed?: Shareholder Stewardship in a Controlling Shareholder and ESG World” in Dan W Puchniak & Dionysia Katelouzou, eds, Global Shareholder Stewardship (Cambridge: Cambridge University Press, 2022) 599.
Puchniak, Dan & Samantha Tang, “Singapore’s Puzzling Embrace of Shareholder Stewardship: A Successful Secret” (2020) 53:3 Vanderbilt Journal of Transnational Law 989.
Puchniak, Dan W, “Multiple Faces of Shareholder Power in Asia: Complexity Revealed” in Randall Thomas & Jennifer Hill, eds, The Research Handbook on Shareholder Power (Cheltenham: Edward Elgar, 2015) 511.
———, “The False Hope of Stewardship in the Context of Controlling Shareholders: Making Sense Out of the Global Transplant of a Legal Misfit” (2024) 72:1 The American Journal of Comparative Law 109–169.
Puchniak, Dan W & Luh Luh Lan, “Independent Directors in Singapore: Puzzling Compliance Requiring Explanation†” (2017) 65:2 The American Journal of Comparative Law 265–333.
Puchniak, Dan W & Lin Lin, “Institutional Investors in China: An Autochthonous Mechanism Unrelated to UK-cum-Global Stewardship” in Dan W Puchniak & Dionysia Katelouzou, eds, Global Shareholder Stewardship (Cambridge: Cambridge University Press, 2022) 379.
Puchniak, Dan W & Samantha S Tang, “Singapore’s Embrace of Shareholder Stewardship: A Puzzling Success” in Dan W Puchniak & Dionysia Katelouzou, eds, Global Shareholder Stewardship (Cambridge: Cambridge University Press, 2022) 297.
Clark, Lane & Peacock, UK Stewardship Code Rewritten, by Lane Clark & Peacock (December 2019).
Dewi, Yetty Komalasari, Transforming Law in Economic Activities: Corporate Sustainability in Trade and Investment (2023).
Financial Reporting Council, Review of Early Reporting: UK Stewardship Code 2020, by Financial Reporting Council (London: Financial Reporting Council, 2021).
Leung, Mary & Eugene Hsiao, Stewardship 2.0: Awareness, Effectiveness, and Progression of Stewardship Codes in Asia Pacific, by Mary Leung & Eugene Hsiao (Charlottesville, VA: CFA Institute, 2020).
Nanyang Technological University, “Singapore firms step up as corporate investors take ESG more seriously”, online: <https://www.ntu.edu.sg/business/news-events/news/story-detail/singapore-firms-step-up-as-corporate-investors-take-esg-more-seriously>.
Otoritas Jasa Keuangan, Roadmap Tata Kelola Perusahaan Indonesia, by Otoritas Jasa Keuangan (Otoritas Jasa Keuangan, 2015).
Puchniak, Dan W, An Asian Solution for a Global Problem? Corporate Governance and the Environment in a Non-Anglo-American World (NYU Law USALI East–West Studies, 2022).
Stewardship Asia Centre, Singapore Stewardship Principles for Responsible Investors 2.0, by Stewardship Asia Centre (Singapore: Stewardship Asia Centre, 2022).
———, Stewardship Principles for Family Businesses: Fostering Success, Significance and Sustainability, by Stewardship Asia Centre (Singapore: Stewardship Asia Centre, 2018).
The World Bank, Reports on the Observance of Standards and Codes: Corporate Governance Country Assessment on Indonesia, by The World Bank (Washington, DC: World Bank, 2010).
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Nathaniel O L Mangunsong, Yetty Komalasari Dewi
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
