A Study on Indonesian Securities Companies of Governance and Disclosure

Abstract

This chapter discusses the sophisticated relationship between individual and institutional dynamics, drawing parallels between their survival instincts and the pursuit of reputation. It emphasizes the role of values, manifested through beliefs, norms, rules, traditions, and habits, in shaping an entity's identity, whether an individual or an institution. The chapter underscores the importance of reputation, defined by qualities such as merit, achievement, integrity, and reliability, and its impact on public perception and esteem. It discusses the pivotal role of transparency in achieving credibility and accountability, highlighting that the lack of transparency can lead to misconceptions and hidden agendas. The narrative extends to the governance framework of Bank Indonesia (BI), analyzing its structure comprising principles, commitment, process, and outcomes. The study critiques the absence of transparency in BI's planning and control framework, despite its acknowledgement in the governance structure. It argues for the necessity of consistent and fair rules, laws, and regulations to maintain order and stability. Through structured decision-making and policy formulation involving key stakeholders, the chapter advocates for transparency in governance to enhance public accountability, ultimately contributing to economic development, social welfare, and environmental protection​​.