Indonesian Political, Business & Finance News

Court Appeal Decision Strengthens Government's Hand in Restructuring GBK Block 15

| Source: VIVA Translated from Indonesian | Legal
Court Appeal Decision Strengthens Government's Hand in Restructuring GBK Block 15
Image: VIVA

Jakarta — A High Administrative Court (PT TUN) appellate decision in Jakarta is said to strengthen the government’s legal basis in the process of rescuing and restructuring state assets at Block 15 of the Gelora Bung Karno Sports Complex (GBK).

This was revealed by Kharis Sucipto, advocate for the GBK Complex Management Centre (PPKGBK). The appellate decision, numbered 13/B/2026/PT.TUN.JKT, is said to have reversed the first-instance ruling filed by PT Indobuildco and declared the lawsuit inadmissible.

“Thus, there is no longer any administrative basis that can be used to challenge the process which already has a strong legal foundation previously,” he said on Monday, 2 March 2026.

In the first-instance decision, the Administrative Court (PTUN) had granted PT Indobuildco’s lawsuit against the State Secretary Minister, by cancelling the land evacuation order for the Sutan Hotel and a royalty bill of $45 million for the use of Land Use Rights from 2007 to 2023.

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

According to him, the appellate decision simultaneously defeated Indobuildco’s arguments which had been attempting to delay proceedings by taking shelter behind the cancelled PTUN decision.

Previously, a civil court decision which had acquired permanent legal force also had immediate effect, so it could be executed immediately in accordance with applicable provisions.

Kharis explained that the PT TUN accepted the government’s argument that a notice regarding the obligation to pay royalties and evacuate the land falls within the civil domain, not the authority of PTUN.

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

“The execution is carried out based on a court decision and follows applicable legal mechanisms,” he said.

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

“This decision strengthens the legal clarity that previously existed. PPKGBK is obligated to ensure that state assets are managed in accordance with the law for the greatest benefit of the public,” said Rakhmadi.

He stressed that every step taken by his team has been done professionally, accountably, and measurably, with the main focus of ensuring that the area restructuring proceeds in an orderly manner and provides optimal benefits to the community.

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