Inventory of state assets completed

JAKARTA (JP): Minister of Finance Mar'ie Muhammad said yesterday that state assets are estimated at Rp 53.7 trillion (US$24.8 billion at the current rate) as of April, 1994.

"The value of the assets which consist mostly of land and buildings is based on the preliminary results of the inventory of state assets throughout the country which was completed last year," Mar'ie told a hearing with the House of Representatives Budgetary Commission.

He acknowledged shortcomings within the inventory, notably that of state assets administered by provincial governments.

"But as of last year, all government agencies have reported the inventory of state assets under their administration to the Ministry of Finance," he said.

In 1991, he added, 48 government agencies had not yet reported the inventory of state assets to the finance ministry.

The minister said the results of the latest inventory seem much closer to reality because cumulative investments by the government over the past 25 years have totaled Rp 85 trillion.

"Hence, deducted by depreciation the Rp 53.7 trillion figure as concluded from the latest inventory seems reasonable," he said.

Mar'ie assured the commission that the government will continue to update the inventory.

In connection with this, he said, the government will set up a task force and more state financial accounting boards at the provincial administrations to keep track of state assets.

"I share the commission's concern over the gross shortcomings in the inventory of state assets but we should also appreciate the progress made thus far," he added.

"Our priority is now to set up a task force in every ministry and government agency which will be fully responsible both for inventory and the safeguarding of state properties," he stated.

Mar'ie also expressed great concern over the improper sale of state assets.

"I have instructed all government offices that state assets or properties can be sold or exchanged for private assets only with prior approval from the finance minister or the President," he added.

Members of the Budgetary Commission reminded the minister yesterday of the findings of the Supreme Audit Agency regarding questionable transactions involving state properties.

Some House members even asked about a property exchange agreement made by a private company and the state-owned securities paper and bank note printing company, Peruri.

The head of the accounting board for state finances at the ministry of finance, Nirwan Nasaruddin, told The Jakarta Post that the government planned to set up an accounting board in charge of inventorying state assets in each province by 1997.

"Thus far we have set up seven boards in Jakarta, Surabaya, Medan, Bandung, Palembang, Semarang and Ujungpandang," he said. (fhp)

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