Large corporate failures, financial scandals and economic crises in several countries, have focused attention on the importance of corporate governance. The policy of large financial institution in financing companies through loans or equity, has come to include conditions on corporate governance in these companies. Significantly, CalPERS, the largest American pension fund and one of the United States' largest foreign investors, has published a set of minimum standards to which in its views the market throughout the world should strive to adhere. CalPERS is committed to pursuing good corporate governance from the companies in which the fund invests. This policy is likely to be adopted by an increasing number of institutional investors worldwide, as they are themselves under growing scrutiny from their shareholders. Countries with low standards of corporate governance are increasingly excluded from the lists of countries that international funds are allowed to invest in.

In Indonesia, efforts have also begun to improve corporate governance. A detailed timetable for improvements is an important part of the Letter of Intent signed by Indonesia and the IMF, and continued financial assistance from the IMF is contingent on improved corporate governance.

The National Committee on Corporate Governance is recommending, initiating and monitoring improvements in corporate governance in Indonesia. It has indicated ten key areas in which reforms are necessary, and it has drawn up a Model Code of Corporate Governance that companies can use in implementing corporate governance.