Analysis Of The Application Of Good Corporate Governance (Gcg) Principles In Family Businesse

Alfan Dzikri Jami'an, Rino Sardanto

Abstract


In Indonesia, the manufacturing industry sector showed

positive performance, as indicated by the Purchasing Managers' Index (PMI) which reached a level of 52.2 in 2022. The manufacturing industry also contributes significantly to national exports, with the processing sector recording exports of USD131.13 billion in the same year. The study also identified the potential for improved GCG implementation through more involvement of family members and clearer organizational structures. The subjects showed a tendency to prioritize long-term sustainability. A family business not only becomes an economic entity, but also reflects the identity and heritage of the family. In family businesses, challenges arise in the implementation of Good Corporate Governance (GCG) in family businesses, which often affect decision making, organizational structure, conflict management and responsibility. This research highlights the need to increase the importance of understanding and implementing GCG in family businesses at UD. ADJ DIESEL, identifies limitations in GCG knowledge and the complexity of internal family dynamics that affect the structure and performance of the company. This research emphasizes awareness of the importance of GCG principles in an effort to create more effective and sustainable business governance.

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