GOVERNMENT REGULATION OF THE REPUBLIC OF INDONESIA. NUMBER 38 of 2008 REGARDING
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1 GOVERNMENT REGULATION OF THE REPUBLIC OF INDONESIA NUMBER 38 of 2008 REGARDING AMENDMENT OF GOVERNMENT REGULATION NUMBER 6 OF 2006 REGARDING THE MANAGEMENT OF STATE/REGIONAL OWNED ASSETS Considering: BY THE GRACE OF GOD ALMIGHTY PRESIDENT OF THE REPUBLIC OF INDONESIA, a. that the availability of adequate infrastructure, is an urgent requirement to support the implementation of national development in order to boost the economy and public welfare, and to increase Indonesia's competitiveness in global trade; b. that in order to accelerate infrastructure development, it is necessary to take comprehensive steps to create a climate of investment in infrastructure; c. that the state's property appraisal is required in order to obtain fair value, which is an important element in the framework of preparation of the government balance, utilization, and the alienation of state / regional assets; d. that based on the considerations as referred to in paragraphs a, b, and c, it is necessary to establish Government Regulation regarding Amendment of Government Regulation Number 6 of 2006 regarding Management of State/Regional Owned Assets; In view of: 1. Article 5 paragraph (2) of the 1945 Constitution of the Republic of Indonesia; 2. Law No. 1 of 2004 regarding State Treasury (State Gazette of the Republic of Indonesia of 2004 Number 5, Supplement Number 4355); 3. Government Regulation No. 6 of 2006 regarding Management of State/Regional Owned Assets (State Gazette of the Republic of Indonesia of 2006 Number 20, Supplement Number 4609); To stipulate: DECIDES: GOVERNMENT REGULATION REGARDING AMENDMENT OF GOVERNMENT REGULATION NUMBER 6 OF 2006 REGARDING MANAGEMENT OF STATE/REGIONAL OWNED ASSETS.
2 Article I Provisions in Government Regulation No. 6 of 2006 regarding Management of State/Regional Owned Assets (State Gazette of the Republic of Indonesia of 2006 Number 20, Supplement Number 4609), are amended as follows: I. To insert 1 (one) point in between points 4 and 5 of Article 1, namely point 4a and point 22, so that Article 1 shall be read as follows: Article 1 In this Government Regulation the meaning of: 1. State owned assets shall mean all property(s) purchased or obtained on the account of the state budget or from other legitimate acquisition(s). 2. Regional assets shall mean the property of all goods purchased or obtained on the account of the regional expense budget or from other legitimate acquisition. 3. Manager of assets shall mean the competent official(s) having the authority and responsibility for establishing policies and guidelines and managing state/regional owned assets. 4. Users of assets shall mean the official(s) having the authority for the usage of state/regional owned assets. 4.a. Appraisers shall mean person(s) who make independent assessment based on their competency, consisting of the internal as well as external appraisers. 5. Representative of users of assets shall mean the head unit or an official designated by the user to use the assets in the best of his mastery. 6. Planning of necessity shall mean the activity to formulate details on the needs of the state/regional owned assets to connect the past procurement of goods with the current circumstances as grounds for future actions. 7. Usage shall mean the activities undertaken by users of goods in managing and administrating state/regional owned assets in accordance with the duties and functions of the related institution(s). 8. Utilization shall mean the utilization of state/regional owned assets which is not used in accordance with the duties and functions of the ministry/agency/work unit of the regional apparatus, in the form of lease, lend-use, joint use, and build and transfer to/build, operate and transfer with no change in ownership status. 9. Rent shall mean the utilization over state/regional owned assets by another party within a certain timeframe and by receiving a cash reward. 10. Lend-use shall mean the transfer of usage of goods between central and regional governments and among regional governments within a certain period without receiving a reward(s) and upon expiration of such period, the goods shall be returned to the goods administrator. 11. Utilization cooperation shall mean the utilization of state/regional owned assets by the other party within a certain timeframe in order to increase state/regional revenues, income tax and other financing sources. 12. Build, operate and transfer shall mean the use of state/regional owned assets of land by the other party by way of constructing building and/or infrastructure along with the facility, and utilization of them by the other party within an agreed certain timeframe, henceforth referred back the land with building and/or infrastructure along with the facilities after the expiry of the term.
3 13. Build and transfer shall mean the utilization of state/regional owned assets in the form of land by other party through construction of building and/or infrastructure along with the facilities, and upon completion of the development, they shall be returned to be utilized by other party within an agreed certain timeframe. 14. Cancellation shall mean the act of canceling the state/regional owned assets from the list of goods by issuing a decree from the authorities to free the user and/or representative of users and/or managers of the administrative responsibilities of the goods and physical goods that are in their mastery. 15. Alienation shall mean a transfer of ownership of the state/regional owned assets as a follow-up of cancellation by way of sales, exchange, assign or be included as government capital. 16. Sales shall mean the transfer of ownership of goods that belong to the state/region to other party to receive reimbursement in the form of money. 17. The exchange shall mean the transfer of ownership of state/regional owned assets between central and regional governments, among regional governments, or between central/regional government with other parties by receiving in-kind replacement, at least with equal value. 18. Grant shall mean the transfer of ownership of goods from central government to regional governments, from regional to central government, among regional governments, or from the central/regional government to other parties without obtaining a replacement. 19. Capital investment of central/regional government shall mean the transfer of ownership of state/regional owned assets originally not separated to be taken into account as capital stock in state or regional owned enterprises, regional owned enterprises, or other legal entity owned by the state. 20. Administration shall mean a series of activities that include bookkeeping, inventory, and reporting of state/regional owned assets in accordance with applicable regulations. 21. Inventory shall mean the activity to perform data collection, record-keeping, and reporting the results of the data of item(s) belonging to the state/region. 22. Assessment shall mean the process activity carried out by an appraiser to provide an opinion on the value of an object at a certain rating in order to manage state/regional owned assets. 23. List of users goods hereinafter referred to as DBP shall mean a list containing data items used by each user of goods. 24. List of goods of users representative hereinafter referred to as DBKP shall mean a list containing the data of item(s) owned by each user of goods. 25. State ministries/institutions shall mean the state ministries/non-governmental institutions/ state institutions. 26. Ministers/executives of institutions shall mean the official responsible for the use of goods of the state ministries/institutions concerned. 27. Other parties shall mean the parties other than state ministries/institutions and regional apparatus work unit. II. The provisions of Article 2 paragraph (2) letter c is amended so that Article 2 shall be read as follows: Article 2 (1) State/regional owned goods shall include:
4 a. goods purchased or obtained on account of the state/regional budget; or b. goods originating from other legitimate acquisition. (2) Goods referred to in paragraph (1) letter b shall include: a. goods obtained from grants/donations or their equivalent; b. goods obtained as implementation of agreement/contract; c. goods obtained in accordance with provisions of laws and regulation; or d. goods obtained under a court judgment which has already final and binding. III. The provision of Article 26 is added with 2 (two) paragraphs, namely paragraphs (3) and (4), so that Article 26 shall be read as follows: Article 26 (1) Joint use of the state/regional owned assets shall be carried out with the following conditions: a. not available or not sufficiently available funds in State/Regional Budget to meet operational costs/maintenance/repairs needed for the state/regional owned assets in question; b. utilization cooperation partners are determined through a bidding with at least five participants/applicants, except for state/regional owned assets with specific nature may be determined by direct appointment; c. utilization cooperation partners must pay a fixed contribution to state/regional general treasury account every year during the determined term of operation and profit distribution from the the utilization cooperation; d. The amount of fixed contribution payments and profit distribution from the utilization cooperation shall be determined from calculation of a team established by a competent authority; e. The amount of fixed contribution payments and profit distribution from the utilization cooperation must be approved by the manager of goods; f. during period of operation, utilization cooperation partners are prohibited to pledge or mortgage the state/regional owned assets that are the object of utilization cooperation; g. utilization cooperation period shall be a maximum of 30 (thirty) years as from the agreement is signed and can be extended. (2) All costs relating to preparation and implementation of utilization cooperation can not be charged to the State/Regional Budget. (3) The provisions as referred to in paragraph (1) letter g is not applicable to Utilization cooperation of the state/regional owned assets for the following infrastructure provision: a. transportation infrastructure, including seaports, rivers or lakes, airports, railway networks and railway stations; b. road infrastructure including toll roads and toll bridges; c. water resource infrastructure including raw water channels and reservoir/dam; d. drinking water infrastructure includes construction of raw water intake, transmission, distribution networks, and drinking water treatment plant;
5 e. waste water infrastructure including the installation of waste water processing, collecting tissue and the major networks, and facilities including transport and waste disposal areas; f. telecommunications infrastructure including telecommunications network; g. electricity infrastructure including power plants, transmission, or distribution of electricity; or h. oil and gas infrastructure, including processing, storage, transportation, transmission, and distribution of oil and natural gas. (4) The period of Utilization cooperation of state/regional owned assets for the provision of infrastructure as referred to in paragraph (3) shall be a maximum of 50 (fifty) years after the agreement is signed. IV. The provisions of Article 39 paragraphs (1), (2), and (4) are amended and added with 2 (two) paragraphs, namely paragraphs (5) and (6), so that Article 39 shall be read as follows: Article 39 (1) Assessment of state assets in the form of land and/or buildings in order of usage or alienation is carried out by an internal appraiser determined by the manager of goods, and may involve external appraiser(s) determined by the manager of the goods. (2) Assessment of regional assets in the form of land and/or buildings in order of usage or alienation of an internal appraiser determined by governors/regents/mayors, and may involve external appraiser(s) set by governors/regents/mayor. (3) Assessment of the state/regional owned assets as referred to in paragraphs (1) and (2) shall be carried out to obtain fair value, with the lowest estimation by using the NJOP. (4) Excluded from the provisions as referred to in paragraph (3) for the sale of the State assets in the form of land required for the construction of simple flats (rumah susun). (5) The selling price of state assets as referred to in paragraph (4) shall be determined by the Minister of Finance based on calculations from the Minister of Public Works. (6) Further provisions concerning the assessment of State Assets shall be stipulated by Regulation of the Minister of Finance. V. The provisions in Article 44 paragraph (1) letter a, is amended, so that Article 44 shall be read as follows: Article 44
6 (1) Disposal of the state/regional owned assets followed by annihilation shall be done if the state/regional owned assets concerned: a. can not be used, be utilized and/or non-transferable; or b. other reasons in accordance with the provisions of laws and regulation. (2) Annihilation as referred to in paragraph (1) shall be done by: a. users of goods after receiving manager of goods approval for state assets; or b. user of goods through a decision letter from the manager of goods upon receiving approval of governors/regents/mayors for regional assets. (3) Implementation of annihilation as referred to in paragraph (2) shall be set forth in the minutes and be reported to manager of goods. VI. Substance of the provisions of Article 46 remains and an elucidation of Article 46 paragraph (3) letter e is amended so that formulation of the elucidation of Article 46 shall be as stated in the Elucidation of Article By Article Number 6 of this Government Regulation. VII. The provisions of Article 51 paragraph (3) are amended so that Article 51 shall be read as follows: Article 51 (1) The sales of state/regional owned assets shall be carried out with consideration: a. to optimize the excess or idle state assets; b. economically more profitable for the state to sale; c. as implementation of the provisions of laws and regulation. (2) Sales of the state/regional owned assets shall be done through auctions, except in certain matters. (3) The exception as referred to in paragraph (2) includes: a. the state/regional owned assets with specific nature; and b. other state/regional owned assets as further determined by the manager of goods. Article II This Government Regulation shall commence to be effective as of the date of its establishment. For the public cognizance, it is instructed to publicize this Government Regulation by placing it in the State Gazette of the Republic of Indonesia. Established in Jakarta Dated 19 May 2008 PRESIDENT OF THE REPUBLIC OF INDONESIA, signed. DR. DR. H. H. SUSILO BAMBANG YUDHOYONO
7 Promulgated in Jakarta Dated 19 May 2008 MINISTER OF LAW AND HUMAN RIGHTS REPUBLIC OF INDONESIA, signed ANDI MATTALATTA STATE GAZETTE OF THE REPUBLIC OF INDONESIA OF 2008 NUMBER 78. Copy conforms to its original DEPUTY STATE SECRETARY MINISTER FOR LEGISLATION AFFAIRS, MUHAMMAD SAPTA MURTI ELUCIDATION ON GOVERNMENT REGULATION OF THE REPUBLIC OF INDONESIA NUMBER 38 FOR 2008 REGARDING AMENDMENT OF GOVERNMENT REGULATION NUMBER 6 OF 2006 REGARDING MANAGEMENT OF STATE/REGIONAL OWNED ASSETS I. I. GENERAL a. Government Regulation No. 6 of 2006 regarding Management of State/regional owned assets stipulates the management of state assets including planning of needs and budgeting, procurement, usage, utilization, security and maintenance, assessment, removal, transfer of ownership, administration, coaching, supervision and control. Utilization of state assets in the form of Utilization Cooperation as stipulated in the Government Regulation was considered improperly carried out. Government efforts to attract partners or investors of Utilization Cooperation in the construction of infrastructure remain encountering obstacles. These obstacles are the result of convenience or investment facilities offered by the neighboring countries that are capable of offering relatively longer investment period compared to that of being provided by the Republic of Indonesia. Therefore, in order to boost the economy and welfare of society as well as to
8 enhance Indonesia's competitiveness in global trade, the period for utilization of state assets in the form of Utilization Cooperation (KSP) need to be adjusted. Under consideration that utilization cooperation does not make the alienation of State assets, then the adjustment period can be done as such that it shall be relatively longer compared to Right to Use, Right to Build, and the Right to Use upon State Land. b. Assessment of state/regional owned assets shall be required in order to obtain fair value or market value in accordance with applicable regulations. Fair value or market value of the state/regional owned assets obtained from this assessment is an important element in the framework of government balance sheet preparation, use and alienation of the state/regional owned assets. II. ARTICLE BY ARTICLE Article I Figure 1 Article 1 Figure 2 Article 2 Figure 3 Article 26 Figure 4 Article 39 Paragraph (1) What is meant by internal appraiser is the Civil Servants appraiser within the Governmental environment appointed by the power of the Minister of Finance that is given the task, authority, and responsibility to conduct an independent assessment. What is meant by external appraiser is an appraiser other than an internal appraiser that has a license to practice assessment and a member(s) of the an assessment association recognized by the Ministry of Finance. Paragraphs (2) and (3) Paragraph (4) Exception of sales of goods owned by the State in paragraph (3) is intended so that the development of simple flats (rumah susun sederhana) can be achieved but the fairness of price/value of goods is still considered. Paragraphs (5) and (6) Figure 5
9 Article 44 Paragraph (1) Letter a Including that which are not non-usable, can not be utilized, and/or non-transferable among other due to considerations of being economically not feasible or have harmful effects if maintained. Letter b What is meant as in accordance with provisions of laws and regulation shall among others be the Law of Customs. Paragraphs (2) and (3) Figures 6 Article 46 Paragraphs (1) to (2) Paragraph (3) Letter a - Not according to spatial location means change(s) of designation and/or function of territorial area occurring on the ground and/or buildings owned by state/region, for example, from the allotment of office areas into commercial areas. - Not according to the urban planning means the land and/or buildings owned by state/region is in need of adjustments, resulting in changes towards the width of the land and/or building. Letter b The disposed assets shall be building(s) standing on the land which subsequently is to be demolished and then built with new buildings on the same land (reconstruction) in accordance with the budget allocation provided in the budget document. Letter c Definition of land and/or buildings intended for public servants are: - Land and/or building, which is in the category of state house for IIIrd Classification; - Land that is a plot of lands of which, according to the initial procurement plan, is intended for civil service housing development. Letter d The definition of public interest means an activity that involves interests of the nation and country, society in general, the people commonly/jointly, and/or development interest. Categories of activities, which include public interests are, among others, as follows:
10 - public road, highway, railway, drinking water / clean water channels and/or drainage; - reservoirs, dams, and other watering constructions including irrigation channels; - general hospitals and community health centers; - Ports, airports, railway stations or terminals; - Liturgy; - education or schools; - public market; - public cemetery facilities; - public safety facilities such as, among others, flood, lava, and other disaster prevention dikes; - post and telecommunications; - sports facilities; - radio broadcasting stations, television and the supporting facilities for public broadcasting; - governmental offices, local governments, representatives of foreign countries, the United Nations, and international organizations under the protection of the United Nations; - facilities for the Indonesian Armed Forces and Police of the Republic of Indonesia in accordance with the basic tasks and functions; - simple flat (rumah susun sederhana); - laystall; - preservation of natural and cultural heritage; - landscaping; - social shelter; - electricity generation, transmission, and distribution. Letter e The state/region regional assets designated as the implementation of laws and regulation due to court judgment or confiscation may be alienated without the approval of DPR/DPRD. Figures 7 Article 51 Paragraph (1) Paragraph (2) Auctioning shall be the sale of the state/regional owned assets before auction officials. Paragraph (3) Letter a What are include as the state/regional owned assets with specific nature shall be the goods specifically regulated in accordance with laws and regulation, such as IIIrd category State house(s) that is sold to its occupants or service vehicles of an individual state officer being sold to state officers.
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