LOSSES IN THE MANAGEMENT OF SUBSIDIARIES OF STATEOWNED ENTERPRISES IN THE FORM OF LIMITED LIABILITY COMPANIES BASED ON THE DOCTRINE OF BUSINESS JUDGMENT RULE AND CIVIL LAW

Losses experienced in managing state-owned subsidiaries are not considered state losses but losses of the StateOwned Enterprises, as SOE subsidiaries are considered civil legal entities. Thus, there is a need to understand thelegal responsibilities and principles governing management decision-making in SOE subsidiaries and theimplications for state finances. This research is a normative legal research that uses legislative, conceptual, andcomparative approaches. The object of research is legal norms relating to state financial losses in the managementof BUMN subsidiaries in the form of PT, based on the doctrine of the Business Judgment Rule and civil law.Secondary data is obtained from literature studies. Data analysis is carried out qualitatively by describing theopinions of respondents and the results of literature studies descriptively and universally, using the inductivemethod to conclude from particulars to generalities by considering theoretical perspectives. The results show thatlosses in the management of BUMN subsidiaries in the form of PT require a cautious approach, with the doctrineof the Business Judgment Rule as a guideline for evaluating management decisions. Responsibility toshareholders, including the state, requires careful consideration of the interests of all parties. The principles ofgood corporate governance, transparency, accountability, and effective risk management are crucial to preventingundue losses.