Indonesian Political, Business & Finance News

Government Issues Ultimatum Over Idle State Land in Kemayoran

| Source: CNBC Translated from Indonesian | Economy
Government Issues Ultimatum Over Idle State Land in Kemayoran
Image: CNBC

The government will evaluate a number of cooperation agreements for the utilisation of state assets in the Kemayoran area after discovering land that has not been built upon or used in accordance with the intended purpose. This was stated by Deputy Minister of State Secretariat Juri Ardiantoro during a direct inspection of several locations within the Kemayoran Complex Management Centre (PPK Kemayoran) on Monday (6/7/2026). “We want to ensure that all state assets are utilised according to their designation and provide real benefits for the state and the community. The reality is that there is land that has been cooperated on for a long time but has not been utilised properly. Therefore, all documents and the implementation of the cooperation will be re-examined,” said Juri. The locations inspected included land in Blok B.2 No.2, Blok B.3, Blok B.7/8, and Blok C.7, as well as land cooperated with banks that are members of the State-Owned Banks Association (Himbara) at Blok B.15 Kavling No. 6 and Blok B.10 No. 5 in the Kemayoran area. Based on the inspection results, a number of these plots have not been developed according to the plans and obligations outlined in the cooperation agreements. This condition has resulted in state assets not providing optimal economic, social, or spatial benefits. Juri stated that the evaluation will not only cover the physical condition of the land but also the partners’ compliance with all contractual obligations. The government will examine the construction timeline, fulfilment of financial obligations, suitability of land use, and the status of land rights that have been granted. “The government will investigate whether there are breaches of the agreement, including when land rights have been granted for a long period but the land is not built upon, not utilised according to its designation, or left idle. The obligations of each partner to PPK Kemayoran must also be fulfilled,” he stressed. If the evaluation finds violations of the agreement or statutory provisions, the government will take administrative and legal steps to protect state assets. These steps may include reviewing the form of cooperation, land utilisation rights, or other legal actions in accordance with applicable regulations. According to Juri, the arrangement of Kemayoran assets is not solely about resolving contracts and legal issues. The government wants to ensure that the Kemayoran area develops according to the spatial plan and becomes a productive, orderly, safe, comfortable, and clean area that provides space for community and business activities. “No party should enjoy profits from state assets without fulfilling their obligations. State assets must be managed responsibly and the benefits must return to the state and the community,” he said. President Director of PPK Kemayoran Teddy Robinson Siahaan said his party has coordinated with partners to encourage the fulfilment of obligations and the acceleration of development on the cooperated land. “The Deputy Minister’s visit strengthens PPK Kemayoran’s steps to resolve asset issues firmly, comprehensively, and based on the law. We will ensure that every cooperation is carried out transparently, accountably, and does not harm the state’s interests,” said Teddy. PPK Kemayoran has also prepared legal assistance to review agreements, map out problems, and formulate resolution steps against partners who have not fulfilled their obligations. As a Public Service Agency under the Ministry of State Secretariat, PPK Kemayoran manages an area of approximately 450 hectares. The evaluation of cooperation and the regulation of land use are part of the government’s efforts to increase the area’s economic value, strengthen state revenue, and ensure that state assets are not left to lose their function and benefits.

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