Peer Review Report For: The Effect of Corporate Governance and Transformational Leadership on Business Strategy and Business Performance Moderated by Government Policy [version 1; peer review: 1 approved]

Background The performance of regional-owned multi-business enterprises (BUMD Aneka Usaha) in Indonesia is crucial for regional economic development, yet many still face challenges related to weak corporate governance, leadership, and business strategy. Methods Data were collected through a questionnaire survey administered to 176 directors of regional-owned multi-business enterprises across Indonesia. The data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM), with higher-order constructs estimated in SmartPLS. Results The findings show that corporate governance, transformational leadership, and business strategy each have positive and significant effects on business performance, and that business strategy mediates the effects of governance and leadership on performance. Government policy also significantly moderates the relationships between corporate governance, transformational leadership, business strategy, and business performance, strengthening their positive impact. Conclusions These results highlight the need to reinforce internal capabilities through stronger governance practices, transformational leadership, and flexible, innovation-oriented strategies, while ensuring a supportive government policy environment so that regional-owned enterprises can improve their sustainable performance and public value creation.