Crypto Assets of Indonesian Debtors Can Now Be Directly Seized

The government, through the Ministry of Finance (Kemenkeu), has opened the door for the utilisation of assets belonging to debtors by the state without requiring approval from the indebted party. This regulation is outlined in Ministerial Regulation on Finance (PMK) Number 23 of 2026, which has been signed by Finance Minister Purbaya Yudhi Sadewa. The latest provision is established in an inserted article, namely Article 186A of PMK 23/2026. In that article, it is stated that collateral goods or other assets belonging to the debtor that have been seized by the state can be directly controlled or utilised by the government through the State Receivables Affairs Committee (PUPN) without obtaining approval from the debtor/guarantor. “Utilisation by the PUPN branch without the approval of the Debtor/Guarantor, and the proceeds used to reduce the debtor’s debt,” quoted from the latest provision of PMK 23/2026, on Monday (27/4/2026). In Article 186B of the PMK, Purbaya establishes the rules or conditions for physical control and use by the state of collateral goods or other assets belonging to the debtor that have been seized by the state. With this new scheme, seized assets no longer have to wait for lengthy auction or legal resolution processes before they can be used. Moreover, the proceeds from the utilisation of those assets can be used to reduce the debtor’s obligations to the state. This means that assets that previously lay idle can now directly contribute to debt settlement. In the PMK, Purbaya also only provides room for requesting ministries/institutions (K/L) to carry out physical control and use by the state for a period of 2 years, and that physical control or use by the state does not reduce the debtor/guarantor’s debt. Meanwhile, in Article 186C, not only K/L can apply for the utilisation of physical assets or other wealth of state debtors, but also state-owned enterprises (BUMN)/regional (BUMD)/village (BUMDes); individuals; supporting units for government/state activities such as ASN associations, TNI/Polri; other business entities; and other bodies such as limited liability companies, cooperatives, and various types of partnerships. The forms of collateral goods and/or other wealth that can be subject to forced rights transfer include movable assets, including financial assets such as: cash; digital/crypto assets; wealth stored in financial service institutions such as deposits, savings, overdraft balances, current accounts, or other similar forms; bonds, shares, or other securities; receivables/claims; and/or capital participation in other companies. Meanwhile, assets in the form of land and/or buildings must meet the following criteria: assets are certified in the name of the Debtor/Guarantor/Party Acquiring Rights; assets are not involved in legal issues; assets are not under unlawful control by third parties; and assets are not collateral for debt to other creditors. “Debt payment through asset takeover only reduces the debt amount from the Debtor/Guarantor, without reducing the administration costs of managing State Receivables,” as stated in Article 297D of PMK 23/2026.