New State Debt Regulations: Seized Assets Can Now Be Directly Utilised by the Government

JAKARTA, KOMPAS.com - The government is changing the mechanism for managing state debts through new regulations that open the way for seized assets to be directly utilised by the government, without always having to go through an auction process. These provisions are contained in Ministry of Finance Regulation (PMK) No. 23 of 2026, which revises PMK No. 240 of 2016 on the Management of State Debts. The regulation has been in effect since its promulgation on 24 April 2026. This regulatory change is one of the government’s steps to accelerate the resolution of state debts while optimising the utilisation of assets that have previously only stopped at the seizure process. “To improve the optimisation of state debt resolution in line with developments in debt management, it is necessary to amend PMK No. 240 of 2016 on the Management of State Debts,” states the consideration in the regulation, quoted on Tuesday (28/4/2026). Under the new scheme, seized assets no longer always have to be auctioned, but can be directly used for state interests, and the proceeds from their utilisation can be used to reduce debt obligations. “Utilisation by the PUPN branch without the approval of the Debtor/Debt Guarantor and the proceeds used to reduce the Debtor’s debt,” states Article 186A paragraph (b) of the regulation. However, the takeover of assets is not done automatically. Article 186B regulates several conditions that must be met before the state can control and utilise the assets. First, the Seizure Order (SPP) and the seizure minutes must have been issued. Second, the ministry or agency as the applicant must submit a written application to the Debt Assigner. Third, implementation is only carried out after a decision from the head of the PUPN branch. The applicant must also accept the asset condition as is, including bearing any outstanding costs related to the asset.