THE IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE: A COMPARISON BETWEEN INDONESIA AND MALAYSIA

Abstrak

The implementation of Good Corporate Governance (GCG) is crucial for companies to maintain economic stability, enhance investor confidence, and achieve sustainable growth. This study compares the journey of GCG implementation in Malaysia and Indonesia, two countries with different cultural, historical, and regulatory contexts. In Malaysia, the government and regulators play a significant role in shaping GCG policies through the Malaysian Code on Corporate Governance (MCCG), while in Indonesia, GCG regulations are issued by the Financial Services Authority (OJK) and the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK). Although both countries have achieved success in improving transparency, accountability, and investor participation, challenges such as corruption, weak law enforcement, and implementation costs remain areas of concern. With strong commitment from all stakeholders, and consistent support from the government and regulators, Malaysia and Indonesia can continue to strengthen their GCG practices to create a more stable, reliable, and sustainable business environment, which will provide long-term benefits for economic growth and societal well-being.