The Importance of Transparency Principles in Management of State-Owned Plantation Enterprises
Sirait, Ningrum Natasya
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The contribution of State-Owned Plantation Enterprises (SOPE) of has a strategic role as one of the economic institutions in Indonesia. This study discusses the importance of the transparency principle in the management of SOPE to anticipate various frauds. One of the factors that cause the SOPE inefficient is the company's management weakness. The principles of good corporate governance in the Republic of Indonesia Act No.19 / 2003 about State-Owned Company (SOC) stated that the SOC have obligations to implement the principles of professionalism, efficiency, transparency, independence, accountability, responsibility, and fairness. The research method is normative juridical and the study found there are violations of the transparency principle in the SOPE management. It can cause economic losses for the company, investors, and the state. In conclusion, violations of the transparency principle such as false and misleading statements that are not in accordance with facts are acts of fraud. The importance of application the principle of transparency in the SOPE management is to anticipate the various frauds intended. Therefore, the implementation of the transparency principle in the SOPE management must be implemented with a strict supervision system through due diligence. All fraudulent practices in SOPE must also be legally accounted for, without exception, because it can harm the company, investors, the state, and stakeholders.