PPA was established by the Government on 27 February 2004 under Government Regulation No. 10 of 2004 to manage the free and clear assets of the Indonesian Bank Restructuring Agency (“IBRA”). To symbolize formally the beginning of the asset management, Minister of Finance and President Director of PPA signed the Asset Management Agreement on 24 March 2004 for a period of five years which can be extended for another one year in each period.
Through the Government Regulation No. 61 of 2008 dated 4 September 2008, the Government changed the purpose and aims of PPA by enlarging its scope of duties which now include:
- management of ex-IBRA assets;
- restructuring and/or revitalization of State Owned Enterprises;
- investment activities;
- management of SOE’s assets.
The shareholders responded to the enlargement of PPA’s duties by issuing the Shareholder Decision No. KEP-164/MBU/2008 dated 5 September 2008 which, among others, changed the period of duties of PPA from five years to a going concern.