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September 10, 2025

Internal Audit and Governance Practices: Their Impact on the Performance of Water Services Regional-Owned Enterprises (BUMDs) in Indonesia

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Quantitative analysis shows governance and employee numbers influence performance in water services BUMDs, indicating areas for improvement.

The research indicates a significant relationship between governance and performance evaluation results of water utility BUMDs.
Corporate governance implementation showed a positive and significant effect on performance, while internal audit personnel had no significant effect.
Descriptive statistical analysis and panel data regression were utilized to analyze the data from 22 selected BUMDs.
Findings suggest enhancing governance practices could improve performance; however, employee numbers had negligible impact.

Diany et al. (2025) studied this question.

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Quantitative analysis shows governance and employee numbers influence performance in water services BUMDs, indicating areas for improvement.