Ministry of Finance Prepares Regulation on Digital-Based Auctions

The government, through the Ministry of Finance (“ Kemenkeu ”), is currently finalizing the Bill on Auctions (“ Auction Bill ”). The introduction of the Auction Bill is a public necessity, particularly to accommodate global transaction patterns and digitalization. The new regulation is also needed to ensure legal certainty and protection, as well as to support the national economy.

“We know that the Auction Bill is a legacy regulation from the Dutch era and is no longer compatible with current developments. Therefore, we will integrate and digitalize it as a new legal basis to simplify auction processes,” explained Windraty Ariane Siallagan, Acting Director of Auctions at the Directorate General of State Assets (Direktorat Jenderal Kekayaan Negara– “ DJKN ”), to Hukumonline.

In addition to providing transaction certainty and legal protection, the digitalization of business processes is necessary in the era of Society 5.0. Strengthening the duties and functions of auction officials in auction implementation can help minimize lawsuits or disputes during auction execution. The Auction Bill is a carry-over Bill that is planned to be completed in 2026.

“It is now in the finalization and harmonization stage at the Directorate General of Legislation (DJPP), and it may be targeted for enactment in the third quarter of next year,” she added.