NEW REGULATION ON LEASING OF STATE PROPERTY
The Minister of Finance has revoked the old Minister of Finance Regulation No. 96/PMK.06/2007 Concerning Procedures for the Utilization, Exploitation, Removal from Inventory and Transfer of State Property (“Regulation No. 96/2007”), and replaced it with Minister of Finance Regulation No. 33/PMK.06/2012 concerning Procedures for the Leasing of State Property (the “Regulation”).
The Regulation defines “State Property” (or “Barang Milik Negara / BMN”) as any good purchased or acquired by using State Budget funds or through other legitimate means. The leasing of State Property is under the authority of the following two government entities, which act as the lessor in the lease:
- BMN Administrator (“Administrator”), which is the government official responsible for and has the authority to establish the policies and guidelines and to administer BMNs (Article 1 Paragraph (2)). Pursuant to Article 7 this official is the Minister of Finance;
- BMN User (“User”), which is the government official authorized to use BMNs, (Article 1 Paragraph (3)). Pursuant to Article 7 this official is the Minister/Head of the respective institution.
BMNs that may be leased (Objects of Lease) are those that comprise:
a. entire land and/or building;
b. part land and/or building; and
c. other than land and/or building.
The above BMNs may be leased to local governments, state owned companies, regional government owned companies, private entities, government support units, and other legal entities. The lease may be made annually, monthly, daily, or hourly and with extension possibility, but the lease period may not be longer than 5 years.
The rest of the regulation deals with the procedures of the lease, the lease agreement and the rights and obligations of the parties.
This Regulation was issued on 23 February 2012, and came into force on 24 February 2012 with the exception of Article 77 (1) letters a and b, which will only come into force three months after the issue of the Regulation. (by: Cahya Buana Arief)