Government announces program of state asset revaluation

The government has announced national program to revaluate state assets to determine their present value.

"The advancement of a country reflects its capability of managing its state assets," Finance Minister Sri Mulyani Indrawati said here on Tuesday.

State assets should not only be recorded in a balance sheet and remain idle, the minister said when announcing the program at the finance ministry office .

Based on an audited report about state assets in 2018, state assets were valued at Rp2,188 trillion. The assets belong to 87 ministries and other state agencies with 26,000 working units.

Certainly with the economic development, the value of the assets had changed that reappraisal is necessary after the last revaluation 10 years earlier or in 2007, the minister said.

"In 2007, the assets were valued at Rp229 trillion. The assets rose in value to an estimated Rp1,244 trillion in 2010 and to Rp2,188 trillion now," she said.

The process of revaluation will take two years (2017-2018) involving 313 teams of appraisers or around 900 members.

In the two years period, the government would appraise 934,409 units of state asset including 108,524 pieces of land, 434,801 buildings, and 391,084 roads, irrigation systems recorded until 31 December 2015.

"The valuation was still 2007. The value of the lands will certainly increase , therefore, updating is necessary that the governments asset and liability balance sheet would be up to date and reliable," Sri Mulyani.

Revaluation of the state assets is expected to turn out the real present value of the assets and better data base of state assets. It is also expected to identify idle assets that they could be fully utilized and would encourage the use of state assets as underlying asset in issuing state securities (SBSN) more efficiently.

President Joko Widodo has signed a Presidential Regulation to provide legal base for the revaluation program.

"The process of asset revaluation would continue that the governments balance could be presented more accurately with greater credibility," Sri Mulyani said.

Source: ANTARA