ABSTRACT : This study aims to explain the effect of quality corporate governance on the risk of default companies in Indonesia for the period 2013-2017. The quality of Corporate governance in this study is proxied by using quality indicators of the application of corporate governance contained in Horwath Report (2002). The default risk in this study is measured using the calculation of Default risk by the Risk Managament Institute (RMI) NUS. In addition to using the main variables, there are also control variables used in the study namely Profitability, Leverage, Liquidity, Age of the Company and Corporate Size. The object of research is companies listed on the Indonesia Stock Exchange for the period 2013-2017 respectively. This study uses a regression model with three estimates, namely Ordinary Least Square (OLS), Fixed Effect Model (FEM), and Random Effect Model (REM). The results of this study indicate that the measured quality of corporate governance has a significant negative effect on the possibility of company defaults in Indonesia for the period 2013-2017.

KEYWORDS: Default Risk, Quality of Corporate Governance, Horwath Report