ANALYSIS OF THE IMPLEMENTATION OF THE WHISTLEBLOWING SYSTEM IN IMPROVING GOOD CORPORATE GOVERNANCE IN THE ASSOCIATION OF STATE-OWNED BANKS (HIMBARA)

Abstract

This research aims to determine the implementation of the whistleblowing system (WBS) as a preventive and detection tool of fraud in the Association of State- Owned Banks (HIMBARA) for the improvement of good corporate governance (GCG). This research applies a qualitative approach with content analysis involving secondary data of the Company Annual Report . The results of the research exhibit that the implementation of the whistleblowing system in HIMBARA has been effective fulfilled the components of anonymity , independence , accessibility , and follow-up . However , the whistleblowing system of HIMBARA is unable to prevent most fraud prevalence despite its being effective in increasing an open culture as seen from the increasing number of whistleblowing system reports . The principle of good corporate governance is properly implemented in the whistleblowing system of HIMBARA. Optimization of an effective whistleblowing system based on good corporate governance is expected to contribute to the development of whistleblowing system policies for better corporate governance in the Indonesian banking sector .