Government Clarifies the Scope of Write-Off and Release of Claim for SOE Assets

The Government is continuing to refine the regulatory framework for the management of state assets, including through the preparation of a draft regulation of the State-Owned Enterprises (“SOEs”) regulatory body concerning the Write-Off and Release of Claim over SOE Assets. The regulation will provide accountable guidelines for SOEs in managing troubled assets and non-performing receivables. 

“It is currently undergoing the harmonization process while also responding to developments in corporate governance and the need to align it with the preceding laws and regulations,” said Unan Pribadi, Director of Harmonization of Laws and Regulations III (“HPP III”) at the Directorate General of Laws and Regulations (“DJPP”) of the Ministry of Law (“Kemenkum”). 

The draft regulation will update Government Regulation No. 21 of 2018 (“PP 21/2018”) on Procedures for the Write-Off and Release of Claim over Remaining Assets from the Banking Restructuring Program (Program Restrukturisasi Perbankan – “PRP”) managed by the Indonesia Deposit Insurance Corporation (Lembaga Penjamin Simpanan – “LPS”). The primary focus of the draft regulation is to clarify the conceptual and legal distinctions between Write-Off and Release of Claim.