APPLICATION OF BUSINESS JUDGMENT RULE (BJR) TO REGIONALLY OWNED ENTERPRISES OF PT WAY KANAN MAKMUR PERSERODA IN LAMPUNG PROVINCE
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Business Judgment Rule (BJR) is a corporate legal doctrine that provides protection to directors for business decisions taken in good faith and prudence as stipulated in Article 97 paragraph (5) of Law Number 40 of 2007 concerning Limited Liability Companies. The application of BJR to Regionally Owned Enterprises (BUMD) presents its own complexity because BUMD has a dual character, namely as a profit-oriented business entity as well as a manager of regional wealth sourced from the APBD. This article aims to analyze the implementation of the BJR principle by the Director, the application of legal sanctions against the Director who does not carry out the BJR, and the factors that hinder its application to PT Way Kanan Makmur (Perseroda). The research uses a normative juridical method with a statute approach, a case approach to Decision Number 42/Pid.Sus-TPK/2025/PN TJK, and a theoretical approach. The results of the study show that the business decisions of the Director of PT Way Kanan Makmur (Perseroda) do not meet the four cumulative requirements of BJR, so they cannot obtain legal protection and lead to criminal liability for corruption. Factors that hinder the implementation of BJR include weak Good Corporate Governance, lack of due diligence, weak financial accountability, conflicts of interest, and limitations in organizational structure and professionalism of human resources
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