ABSTRACT
Good corporate governance is one of important prerequisite for sustained longterm economic growth. The 1997/1998 and 2008 financial crises have exposed problems of corporate governance, including in Indonesia. Crisis always triggers reviews of the existing framework in order to identify weaknesses and suggest necessary reforms. Since the 1997/1998 crises, there have been numerous efforts to improve corporate governance in Indonesia. In order to achieve the desired outcome, it is important to identify the root cause of corporate governance issues and find the best solutions. Improvement in the implementation of corporate governance practices of firms in Indonesia is essential.
