Background

The establishment of PPA on 27 February 2004 as an alternative solution to the state’s asset management is expected to contribute to the national economic reform program. Its primary task duty is to manage ex IBRA’s free and clear assets, for and on behalf of the Ministry of Finance, after the closing down of IBRA (Keppres No. 15/2004).

The establishment of PPA as solution to the State’s asset management was a historical breakthrough that made it unique. In achieving its goal, PPA had been given a definite period of time in order to gain an optimum value, and achieve the target set by the MoF.

To fulfill its purpose and objective, PPA has been entrusted with the following tasks:

  • Asset restructuring
  • Receivables collection
  • Asset value enhancement through cooperation with third parties
  • Assets sales, and
  • Other initiatives as necessary in support of the above-mentioned tasks, including the administration of assets documentation and ensuring the maintenance and physical safety of assets. 
In undertaking the management of such assets, PPA based its procedures on its Asset Management Agreement as regulated by Minister of Finance Regulation No. 32/PMK.06/2006 dated 6 April 2006 as later revised by MoF Decree No. 92/PMK.06/2009, wherein PPA is given the authority to:

 

  • Cooperate with external parties who have the necessary expertise/competence related to asset restructuring work, asset value enhancement and asset sales. 
  • Cooperate with other agency, such as State Receivable Management Committee (PUPN), in receivables collection.
During  5 years of its operation (2004 – 2008), PPA has contributed significantly to the government revenue with the amount of Rp. 16.986.075,00 million or 186.6 % of its total target RKAP 2004 – 2008. In addition, PPA also contributed tax revenue in the amount of Rp. 670.389,00 million and in dividend of Rp. 889.632,00 million, as presented in the table below.

 

(IDR Million)

2004

2005

2006

2007

2008

TOTAL

Proceeds from Asset   

     Management (PAM)

 6,645,690

6,643,253

 2,847,572

1,715,612

1,477,957

19,330,084

Target PAM RKAP

  1,253,024

  4,809,194

  2,813,056

1,754,213

822,785

 11,452,272

Target PAM RJPP

  1,253,024

  3,543,743

  1,565,416

 1,911,766

1,100,298

   9,374,247

Remittance to the 

Gov’t

  5,350,000

 6,118,012

  2,652,526

1,603,710

1,261,827

 16,986,075

Target Remittance

APBN - RJPP

  918,243

  3,066,579

 1,217,429

1,540,026

 770,258

   7,512,535

Target Remittance

APBN - RKAP

 1,253,024

 4,000,000

 2,350,000

1,500,000

 600

   9,103,624

Target Remittance

APBN - UU

     APBN

 5,000,000

 5,124,000

 2,579,000

1,500,000

3,000,000

 17,203,000

Profit After Tax

 602,423

 377,086

 20,889

72,775

 92,573

   1,165,746

Target Net Profit –

RKAP

 78,050

 278,459

90,345

12,974

 4,402

      464,230

Tax Remittance

  340,477

  205,212

 85,208

19,334

 20,158

      670,389

Dividend Remittance

 439,444

 188,543

 146,223

69,136

 46,286

      889,632

Based on the results achieved by PPA in those 5 years, and a continuing need of PPA, on 4 September 2008 through Government Regulation No. 61/2008, the Government changed the purpose and aims of PPA by expanding its scope of duties, and add the followings:

  • Restructuring and/or revitalization of State Owned Enterprises;
  • Investment activities;
  • Management of SOE’s non-core assets.
With those changes, PPA’s was also changed from a limited 5 year period to a going concern SOE.