Analysis of the failure of implementation of Good Corporate Governance (GCG)

Case study of PT Bumi Asih Jaya

Authors

  • Muhammad Akhul Muslimin Department of Islamic Banking, State Islamic University of Maulana Malik Ibrahim Malang

Keywords:

Good Corporate Governance, insurance, PT Bumi Asih Jaya, GCG theory, corporate governance

Abstract

This study discusses the importance of implementing Good Corporate Governance (GCG) in maintaining the sustainability and integrity of the company, especially in the insurance industry. This study uses a descriptive-analytical approach based on secondary data obtained through literature study and online exploration. The main focus is on the failure of PT Asuransi Jiwa Bumi Asih Jaya as a result of the weak implementation of GCG principles, such as transparency, accountability, and risk management. By examining GCG theories, such as Agency Theory, Stakeholder Theory, Resource Dependency Theory, and Stewardship Theory, this study shows that governance failures not only resulted in the company's collapse, but also harmed thousands of policyholders. The results of the study confirm that supervision and consistent implementation of GCG are crucial requirements to maintain public trust and ensure consumer protection in the financial sector.

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Published

2025-10-20

How to Cite

Muslimin, M. A. (2025). Analysis of the failure of implementation of Good Corporate Governance (GCG): Case study of PT Bumi Asih Jaya. Maliki Interdisciplinary Journal, 3(10), 698–707. Retrieved from https://urj.uin-malang.ac.id/index.php/mij/article/view/19190

Issue

Vol. 3 No. 10 (2025): OCTOBER

Section

Articles

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