The Principle of Caution in the Procurement of Goods and Services

Oct 13, 2025 by thesweetdesigns.com 41 views

Juridical Review of the Principle of Directors' Prudence in the Cooperation Agreement for the Procurement of Goods and Services (Research Study of PT. Perkebunan Nusantara III (Persero) Medan)

Introduction

In the business world, a limited liability company (PT) is one of the most sought-after business forms by business actors. This form offers transparent and binding responsibilities, where management is held by the directors who are fully responsible for the company's operations. The Board of Directors not only acts for the benefit of shareholders, but also functions as a company representative in dealing with legal issues, especially in the application of prudence principles in the procurement of goods and services at the State-Owned Enterprise (BUMN). In this context, PT Perkebunan Nusantara III (Persero) was made the object of research to analyze the application of these principles.

The Principle of Caution in the Procurement of Goods and Services

The principle of caution in the process of procuring goods and services in SOEs is regulated in the Minister of State Minister Regulation Number PER-05/MBU/2008. This regulation emphasizes the importance of prudence principles in the procurement of goods and services, which is a crucial aspect of the company's operations. The principle of caution is closely related to the doctrine of Fiduciary Duty, which shows that the Directors remain responsible for acting in accordance with the interests of the company.

The Role of the Board of Directors in the Application of Prudence Principles

The Board of Directors has full authority in carrying out company operations, including the procurement of goods and services. Although the law does not explicitly regulate the principle of caution, there are several regulations that emphasize the importance of these principles. The Directors of PT Perkebunan Nusantara III adopted regulations from the Ministry of SOEs and also issued internal policies related to the procurement of goods and services, which became a guideline for them in carrying out the principle of caution.

The Internal Control System in the Procurement of Goods and Services

The Board of Directors also implements the principle of caution by compiling an organizational structure that includes the auction, law and risk management, internal supervision, and engineering. These steps are taken to ensure that the procurement of goods and services is carried out in accordance with applicable legal provisions and the principle of caution can be carried out effectively. The internal control system is a crucial aspect of the company's operations, as it ensures that the procurement of goods and services is carried out in a transparent and accountable manner.

The Legal Consequences of Non-Compliance with the Principle of Caution

The research aims to analyze and explain the principles of caution and legal consequences for directors and other officials if they do not comply with these principles in the procurement of goods and services. The main focus of this research is to explain the application of prudence principles in the procurement regulations of goods and services at PT Perkebunan Nusantara III (Persero) and examine the existing internal control system. The results of this research will provide valuable insights into the application of prudence principles in the procurement of goods and services and the legal consequences of non-compliance.

Methodology

The research method used is normative juridical, which refers to legal materials and relevant regulations. The data collected includes primary and secondary legal sources through literature and document studies, which are then analyzed qualitatively and are presented systematically. The research aims to provide a comprehensive understanding of the application of prudence principles in the procurement of goods and services and the legal consequences of non-compliance.

Conclusion

In conclusion, the application of the principle of caution in the procurement of goods and services at PT Perkebunan Nusantara III (Persero) is not only based on external regulations but is also supported by clear internal policies. Although the law does not explicitly regulate this principle, the Board of Directors is still required to operate with integrity and comply with the principle of caution to protect the interests of the company and related stakeholders. The research provides valuable insights into the application of prudence principles in the procurement of goods and services and the legal consequences of non-compliance.

Recommendations

Based on the findings of this research, the following recommendations are made:

The Board of Directors should continue to implement the principle of caution in the procurement of goods and services.
The internal control system should be strengthened to ensure that the procurement of goods and services is carried out in accordance with applicable legal provisions.
The company should provide regular training and education to its employees on the importance of prudence principles in the procurement of goods and services.
The company should establish a clear and transparent procurement process to ensure that the procurement of goods and services is carried out in a fair and accountable manner.

Limitations of the Study

This study has several limitations, including:

The study is limited to the analysis of the application of prudence principles in the procurement of goods and services at PT Perkebunan Nusantara III (Persero).
The study does not provide a comprehensive analysis of the legal consequences of non-compliance with the principle of caution.
The study is based on a case study approach, which may limit the generalizability of the findings.

Future Research Directions

Future research should aim to provide a comprehensive analysis of the application of prudence principles in the procurement of goods and services in other companies. Additionally, future research should aim to provide a more detailed analysis of the legal consequences of non-compliance with the principle of caution.
Q&A: Juridical Review of the Principle of Directors' Prudence in the Cooperation Agreement for the Procurement of Goods and Services

Q: What is the principle of caution in the procurement of goods and services?

A: The principle of caution in the procurement of goods and services refers to the requirement that companies must act with prudence and caution when procuring goods and services. This principle is closely related to the doctrine of Fiduciary Duty, which shows that the Directors remain responsible for acting in accordance with the interests of the company.

Q: Why is the principle of caution important in the procurement of goods and services?

A: The principle of caution is important in the procurement of goods and services because it ensures that companies act with integrity and transparency when procuring goods and services. This principle helps to prevent corruption and ensures that companies act in the best interests of their stakeholders.

Q: What are the legal consequences of non-compliance with the principle of caution?

A: The legal consequences of non-compliance with the principle of caution can be severe. Companies that fail to comply with this principle may be subject to fines, penalties, and even criminal prosecution. Additionally, non-compliance with this principle can damage a company's reputation and lead to a loss of public trust.

Q: How can companies ensure that they are complying with the principle of caution?

A: Companies can ensure that they are complying with the principle of caution by implementing a robust internal control system. This system should include procedures for the procurement of goods and services, as well as regular audits and reviews to ensure that the company is acting with integrity and transparency.

Q: What is the role of the Board of Directors in the application of the principle of caution?

A: The Board of Directors has a critical role in the application of the principle of caution. The Board is responsible for ensuring that the company is acting with integrity and transparency, and that the principle of caution is being applied in all aspects of the company's operations.

Q: How can companies ensure that their procurement processes are transparent and accountable?

A: Companies can ensure that their procurement processes are transparent and accountable by implementing a clear and transparent procurement process. This process should include regular audits and reviews, as well as procedures for the procurement of goods and services.

Q: What are the benefits of complying with the principle of caution?

A: The benefits of complying with the principle of caution include:

Improved reputation and public trust
Reduced risk of corruption and non-compliance
Improved internal control and governance
Enhanced transparency and accountability
Better decision-making and risk management

Q: What are the challenges of complying with the principle of caution?

A: The challenges of complying with the principle of caution include:

Ensuring that the company's internal control system is robust and effective
Ensuring that the company's procurement processes are transparent and accountable
Ensuring that the company's employees are aware of and comply with the principle of caution
Ensuring that the company is acting with integrity and transparency in all aspects of its operations.

Q: How can companies measure the effectiveness of their compliance with the principle of caution?

A: Companies can measure the effectiveness of their compliance with the principle of caution by:

Conducting regular audits and reviews
Implementing a robust internal control system
Ensuring that the company's procurement processes are transparent and accountable
Ensuring that the company's employees are aware of and comply with the principle of caution
Ensuring that the company is acting with integrity and transparency in all aspects of its operations.

Q: What are the future directions for research on the principle of caution?

A: Future research on the principle of caution should aim to:

Provide a comprehensive analysis of the application of prudence principles in the procurement of goods and services in other companies
Provide a more detailed analysis of the legal consequences of non-compliance with the principle of caution
Examine the effectiveness of internal control systems in ensuring compliance with the principle of caution
Examine the role of the Board of Directors in ensuring compliance with the principle of caution.