Govt to restructure the bulk of state assets

M. Taufiqurrahman, The Jakarta Post, Jakarta

President Susilo Bambang Yudhoyono ordered on Tuesday a massive reevaluation of all assets controlled wholly or partly by the government in an effort to prevent their misuse.

Yudhoyono also demanded a revamp of all agencies tasked with managing state assets.

"The Presidents expects a complete report on state assets in the next month or two... The report will not be concerned only with the amount of assets but also the managing agencies, some of which are no longer consistent with existing regulations," State Secretary Hatta Rajasa told a media briefing at the Bina Graha Presidential Office on Tuesday.

He said that assets under the control of the State Secretariat and the Finance Ministry would be among those audited.

The Gelora Bung Karno sports complex in Senayan and the Kemayoran fairground, both in Central Jakarta, are under the management of the State Secretariat. Land in both areas has been rented or sold to outside operators in the past and the President has ordered that they be returned to their original uses.

"Restructuring the assets will not concern only their legal aspects but also issues related to the use of the assets," Hatta said.

Hatta added that pending the outcome of the restructuring, no new contracts would be made with private companies in the management of the assets.

"However, we will honor existing contracts," he told reporters.

A number of private companies have signed contracts for land use in Senayan, erecting malls and plush apartments.

As for assets under the control of the Finance Ministry, Finance Minister Sri Mulyani Indrawati said the government would issue new regulations that would mandate the revamping of organizations managing state assets.

"The new organizations must be made consistent with good governance principles," Sri Mulyani said, adding that two presidential decrees would be issued to serve as a new legal basis for the management of state assets.

She said that assets under the finance ministry included land, buildings and premises controlled by government agencies, state-owned enterprises and seven state universities, shares controlled by the government in state-owned companies, assets of the now-defunct Indonesian Banks Restructuring Agency, legally disputed assets, treasure retrieved from ship wrecks and assets seized from contractors in government projects.

According to the Finance Ministry's estimate the assets are valued at Rp 335 trillion (US$37 billion), a figure that has been disputed by the Supreme Audit Agency (BPK).

"This is a historical value, not the actual, proper value of the assets. That's why the BPK issued a disclaimer as its proper value is yet to be determined," Sri Mulyani said.

She said that in collaboration with other ministries, the restructuring of the state assets would be conducted in stages and was expected to wrap up in 2009.