NJOP preferred in state assets assessment<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government is starting to consider a plan to use the official
\ntaxable property value (NJOP), instead of the current market
\nprice to reassess state assets scattered across the country.<\/p>\n
The Ministry of Finance's Director for the Management of State
\nAssets Herry Purnomo said financial and time constraints were
\nbehind the government's consideration for the new assessment
\nprocedure.<\/p>\n
"If the government hires independent appraisers to assess
\nstate assets, it will be very expensive and take years to
\ncomplete," he said in a seminar on Tuesday.<\/p>\n
Herry explained that the government would benefit by using the
\nNJOP price data, which is readily available, as it would be more
\nexpedient in getting an accurate picture of the proper value of
\nits assets, some of which were last valued up to 30 years ago.<\/p>\n
The government's 2004 financial report -- submitted to the
\nSupreme Audit Agency -- put the price of some state assets at Rp
\n1 each.<\/p>\n
Economist Iman Sugema of the Bogor Institute of Agriculture
\nsaid that using the taxable value was preferable to the current
\nsystem -- which nominally valued some assets, such as land,
\nirrigation and bridges at Rp 1 to enable them to be accounted for
\nas state inventory.<\/p>\n
However, he said, the government should start using
\nindependent appraisers to get a truer sense of the market value
\nof its assets.<\/p>\n
"Valuing the assets below their market price is very dangerous
\nbecause it leaves room for improperly selling them at a cheap
\nprices," said Sugema, adding that the data for the NJOP was
\nupdated only once every five years.<\/p>\n
Emmy Hafild of Transparency International concurred with
\nSugema, saying that using the taxable value was still not good
\nenough as it was normally lower than the actual market value of
\nthe asset.<\/p>\n
"The government will not benefit because the price stated in
\nthe NJOP is lower than the market price," she said. "Even banks
\nconduct independent surveys and use the market value, why can't
\nthe government?" (002)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/njop-preferred-in-state-assets-assessment-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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