STATE OWNED ENTERPRISES AND STATE FINANCE

State financial losses when associated with the cases of corruption in State-Owned Enterprises (SOE) had been an immense problem. The financial loss of a SOE could be considered as state loss by using an assessment of state losses, as stipulated in the State Treasury Act, which might cause some SOE managers might be accused as corruptors. Even though not all SOE losses were caused by corrupt act, but could also be caused by miss management acts or purely business loss. The doctrine of the business judgment rule and the management principles, the SOE in the form of limited liability company, should be run based on the principle of management of limited liability company, then consideration of the doctrine must be given to the law enforcement in SOE cases. The policies that equate SOE finance matter with the State finances will pose a risk to the development of SOE. The SOE will not be free to pursue the company goals to achieve maximum profits as mandated by the State-Owned Enterprise Act.Keyword: State Owned Company, State Financia