Appeals Court Decision Strengthens Legal Basis for GBK Block 15 Asset Restructuring

Jakarta – The advocate for the Central Gelora Bung Karno Complex Management Centre (PPKGBK), Kharis Sucipto, has confirmed that the Jakarta Administrative Appeals Court’s appellate decision has strengthened the government’s legal basis for rescuing and restructuring state assets at GBK Block 15.

According to Sucipto, the appellate decision numbered 13/B/2026/PT.TUN.JKT overturned the first-instance ruling submitted by PT Indobuildco and declared the lawsuit inadmissible.

“Consequently, there is no longer any administrative basis that can be used to challenge a process that already had a strong legal foundation previously,” Sucipto stated in remarks received in Jakarta on Monday.

In the first-instance decision, the State Administrative Court (PTUN) had granted PT Indobuildco’s lawsuit against the Minister of State Secretariat, annulling a land evacuation order for the Sutan Hotel and a royalty claim of USD 45 million for the use of land rights from 2007 to 2023.

The first-instance decision was contained in case number 221/G/2025/PTUN.JKT.

According to Sucipto, the appellate decision simultaneously undermined Indobuildco’s arguments, which had attempted to delay proceedings by relying on the now-overturned PTUN decision.

Sucipto explained that the Administrative Appeals Court accepted the government’s argument that the demand letter regarding royalty payment obligations and land evacuation falls under civil jurisdiction, not the Administrative Court’s authority.

Regarding the issue of guarantee funds in executing the ruling, Sucipto confirmed there is no legal obligation for PPKGBK to deposit a guarantee in the case.

“Execution is conducted on the basis of court decisions and follows the applicable legal mechanisms,” he stated.

Meanwhile, PPKGBK Chief Executive Officer Rakhmadi Afif Kusumo stated that the government is executing the entire process whilst upholding legal certainty and the principles of good governance.

“This decision strengthens legal clarity that previously existed. PPKGBK is obligated to ensure state assets are managed according to laws and regulations for the greatest public benefit,” Rakhmadi said.

He emphasised that every step taken has been conducted professionally, accountably, and measurably, with the primary focus on ensuring orderly area restructuring whilst providing optimal benefits to the public.

With the collapse of all of Indobuildco’s legal defences, the government now counts down the days.

Secretary of the Ministry of State Secretariat Setya Utama conveyed that the government remains prioritising empathy towards parties affected by the previous management’s actions.

“The state is ready to be present and will embrace employees. We fully understand workers’ concerns and invite them to join the transitional management we are preparing,” Setya said.

It was emphasised that the matter is a dispute between the state and a corporation that no longer has management rights and has not paid royalties, not with its employees.

For this reason, employee welfare is part of the government’s commitment to the future revitalisation of the GBK complex.