PPA was established by the Government on February 27, 2004 under Government Regulation No. 10/2004 to manage the free and clear assets  of the Indonesian Bank Restructuring Agency (“IBRA”). In the implementation of its duty, PPA and Minister of Finance signed the Asset Management Agreement on 24 March 2004 for a period of 5 years that ended on 27 February 2009.

With Government Regulation No. 61/2008 dated 4 September 2008, the Government then broadens the scope/purpose  of PPA to include:

• Management of ex-IBRA assets;
• Restructuring and/or revitalization of State Owned Enterprises;
• Investment activities;
• Management of SOE’s assets.

In response, the shareholders decreed the Shareholder Decision No. KEP-164/MBU/2008 of 5 September 2008 to change PPA's status to a going concern entity.