Abstract :
The effort in implementing Good Corporate Governance (GCG) in Indonesia,
especially for banking industry, has gone through a long process and ended by the
issuance of Bank Indonesia regulation (PBI) No. 8/4/PBI/2006 and No.
8/14/PBI/2006 regarding the implementation of GCG for banking. The purpose of
this research is to find out whether the GCG implementation and disclosure of the
banks in Indonesia have been done consistently based on the PBI mentioned
earlier. The instrument used for this research is the SE BI No. 9/12/DPNP. The
implementation of GCG can affect the banks' rating and efficiency that can be
seen through their financial ratios. The research instrument consists of 202
statements, which is divided into 9 components, such as 1) roles and
responsibilities of Board of Commissioners, 2) roles and responsibilities of Board
of Directors, 3) completeness and roles of Committee, 4) conflict-of interest
handling, 5) compliance function implementation, 6) risk management
implementation including internal control, 7) funding to the related party and big
fund, 8) financial and non-financial condition transparency, GCG report and
internal report, 9) bank strategic planning. The samples used for this research are
26 banks that listed at BEJ in 2006, which then categorized based on their total
assets. By using analysis method of descriptive and comparatives, this research
proved that banks in Indonesia have not perfectly implemented the GCG
components and disclosed the information to the stakeholders through their annual
reports.
Keywords : Good corporate governance (GCG), GCG disclosure