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25 U.N.S.W.L.J. 486 (2002)
Family Capitalism and Corporate Governance of Family-Controlled Listed Companies in Indonesia

handle is hein.journals/swales25 and id is 500 raw text is: UNSW Law Journal FAMILY CAPITALISM AND CORPORATE GOVERNANCE OF FAMILY-CONTROLLED LISTED COMPANIES IN INDONESIA BENNY S TABALUJAN* I INTRODUCTION This article discusses corporate governance of family-controlled companies on two levels. At the more general level, it examines the notion of family capitalism as a paradigm of corporate governance which supplements the managerial capitalism paradigm in Anglo-American corporate governance systems, and the alliance capitalism paradigm prevailing in Japan and Germany. At the more specific level, the article explores family capitalism in the Indonesian context. In particular, it focuses on the question of how family relationships and family values can influence the corporate governance of companies listed on the Jakarta Stock Exchange ('JSX'). I In doing so, the article builds on two previous articles on Indonesian corporate governance. The first article sketched the legal and business contexts of Indonesian corporate governance, taking into account the effects of the Asian financial crisis of 1997-99.2 The second article undertook case studies of three Indonesian banks, focusing on key corporate governance aspects at critical junctures in their corporate lives.3 It was concluded that, despite significant improvements to the Indonesian corporate governance framework during the 1990s, actual corporate governance behaviour during that decade still diverged substantially from stated principles. In particular, if the behaviour of the three banks was measured against key corporate governance principles - such as * BEc, LLB (Monash); LLM, PhD (Melbourne). Barrister and Solicitor, Supreme Court of Victoria and High Court of Australia. Associate Professor in Business Law, Nanyang Business School, Nanyang Technological University, Singapore. I express my appreciation to Ms Tan Hui Tze and Mr Melvin Lim for their valuable assistance in the extraction and compilation of data used in Part IV of this article. Unless otherwise indicated, translations of Indonesian terms in this article are my own. I Indonesia has two stock exchanges: the Jakarta Stock Exchange ('JSX') and the Surabaya Stock Exchange ('SSX'). The latter is located in the second largest Indonesian city of Surabaya but is much smaller than the JSX in terms of market capitalisation. Hence this article focuses on the JSX. 2 Benny S Tabalujan, 'Corporate Governance of Indonesian Banks: The Legal and Business Contexts' (2001) 13 Australian Journal of Corporate Law 67. 3 Benny S Tabalujan, 'Why Indonesian Corporate Governance Failed: Conjectures Concerning Legal Culture' (2002) 15 Columbia Journal ofAsian Law 141. Volume 25(2)

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