The turmoil of events of the 1997 Asian financial crisis has prompted most of the affected countries new awareness the ways corporate should be managed. Today the importance of good corporate governance is widely appreciated across Asia. Corporate governance has undoubtedly improved in Asia. Some countries, Singapore in particular, have made significant progress. In terms of economy, many of East and South East Asian countries has been experiencing a very significant recovery and economic development, shown for instance by the higher rate of GDP growth compared to Indonesia. The low pace of economic growth in Indonesia is mainly due to the low foreign direct investment entering Indonesia. As research and studies shows that investors worldwide put a strong consideration on corporate governance as they are going to choose where to put their money. It is also believed by both scholars and practitioners in general that good corporate governance will give the company a strong competitive advantage itself. Therefore, new corporate-governance laws and codes are important because they set the stage for change