Legal Implications of Separation of Regional Assets in Regionally-Owned Enterprises for the Protection of Public Assets and State Financial Accountability

This study analyzes the legal implications of the separation of regional assets in Regionally-Owned Enterprises (BUMD) on the protection of public assets and state financial accountability. The separation of regional assets, as regulated in Article 298 paragraph (5) of Law Number 23 of 2014 in conjunction with Law Number 9 of 2015, emphasizes that the separated regional assets constitute capital investment by the regional government to BUMD. After capital investment, these assets are no longer recorded as part of the Regional Revenue and Expenditure Budget (APBD), but become BUMD assets as a separate legal entity in accordance with Article 4 of Government Regulation Number 54 of 2017. This study uses a statutory and conceptual regulatory approach by analyzing the provisions of Law Number 17 of 2003 concerning State Finance, Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments, and other derivative regulations such as PP 54/2017 and Permendagri 118/2018. The study results indicate that separated regional assets remain categorized as state finances as long as the regional government has significant ownership or control. Therefore, management of Regionally-Owned Enterprises (BUMD) is required to comply with Government Accounting Standards (PP 71/2010) and is subject to supervision by the Supreme Audit Agency (BPK) in accordance with Law Number 15 of 2004. Protecting public assets requires strengthening regional regulations, transparent oversight mechanisms, and the application of good governance principles to prevent misuse, uncontrolled privatization, and corruption, as specified in Law Number 31 of 1999 in conjunction with Law Number 20 of 2001. This study's recommendations emphasize the importance of regulatory synergy and an increased role of internal and external supervisors to ensure that separated regional assets continue to provide optimal benefits to the public.