On 8 June 2022, President Joko Widodo issued Government Regulation No. 23 of 2022 on state-owned enterprises ("SOEs"), specifically regulating, among others, the appointment and removal of directors and commissioners in SOEs. In addition, the regulation also states that directors and commissioners of SOEs will be personally liable for losses of the SOEs if they are proven to have been negligent when conducting their duties.
On the other hand, Articles 27(5) and 59(2) of the regulation allow directors or commissioners to be exempted from liability under the business judgment rule if they have performed their duties in good faith, have no conflicts of interest, and have taken steps to prevent the loss to the SOEs.
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