Tavanya Shaliha Putri


Restructured non-performing loans by partially or fully cutting off the customer's credit were also known as a haircut. The haircut method commonly used for dealing with the customer's deb considering their financial status and ability to repay.  However, the execution of a haircut policy is always faced with difficulties, mainly if the procedure is applied to state-owned banks (SOE) in Indonesia. This was due to the interpretation of the concept of Indonesian BUMN’s (state-owned enterprises) wealth which states that all wealth owned by BUMN is part of the state's wealth. A different practices applied in Malaysia which carries out privatization by separating Government Linked Companies (GLC) assets from state assets. As a result, this research examined the dimension of directors' accountability to the state's wealth concerning debt write-offs or a haircut in Indonesia and Malaysia using the Business Judgment Rule doctrine. This study used a normative juridical analysis methodology with a statutory approach in Indonesia and Malaysia. The results of this study indicates that the haircut policy is detrimental to state-owned banks, based on these findings, with certain conditions that apply, the directors can be released from the responsibility for using the Business Judgment Rule doctrine.


How to Cite
PUTRI, Tavanya Shaliha. Examining the Business Judgments Rule in the SOE Bank Haircut. The Lawpreneurship Journal, [S.l.], v. 2, n. 2, p. 173-196, dec. 2022. ISSN 2807-7652. Available at: <https://journal.prasetiyamulya.ac.id/journal/index.php/TLJ/article/view/1198>. Date accessed: 15 july 2024. doi: https://doi.org/10.21632/tlj.2.2.173-196.