Weekly Digest: State Assets in Airlangga Hartarto’s Hands
Summary
- Presidential Regulation related to cooperation with the private sectors in state-owned property management is the government’s effort to seek funding in developing and building new infrastructure as projects with the Public-Private Partnership (KPBU) scheme still lack in interest.
- The policy will give rise to legal conflicts, considering that in previous norms, the Finance Minister had the authority in managing state property. Meanwhile, the new policy positions the Coordinating Economic Minister to have a central role in its implementation, starting from planning, determination, and evaluation.
- For private parties, the management of state-owned properties that have been operating for two years proves that the project has been well-established, thus having the opportunity to gain profits. However, several risks are still looming.