Deployment of Whistleblowing System as an Enactment Directive of Good Corporate Governance to Curb Corruption and Fraud in Indonesia State-Owned Enterprise (A Study on PT Nindya Karya)

In this study, the author seeks to find out how the whistleblowing system of PT Nindya Karya is being implemented in its practice, and how the case of corruption, namely the Construction Work of Unloading Wharves in The Free Trade Area (Pelaksanaan Pembangunan Dermaga Bongkar Pada Kawasan Perdagangan Bebas) that turns PT Nindya Karya as the first and the only state-owned enterprise entangled in corporate corruption, influences the implementation of whistleblowing system in the company. This research uses a qualitative approach with a case study method where the data is collected by conducting interviews, in hopes of gaining a comprehensive understanding of how the case of corruption influenced the implementation of whistleblowing system in PT Nindya Karya and to uncover how the whistleblowing system is being implemented in its practice. The result of this study finds that whistleblowing system of PT Nindya Karya was established as a response to fraud recovery upon the corruption case through The Decree of PT Nindya Karya’s Board of Directors of the year 2014 about the implementation of Good Corporate Governance. In its practice, the whistleblowing system of PT Nindya Karya lacks participation. Since its establishment, the whistleblowing system had only accumulated 2 reports whereupon deemed invalid when processed.