Regulation of the Minister of Finance Number 23 of 2026 Expanding the Execution of State Receivables through Digital Assets, Asset Takeovers, and Collateral Utilization

Introduction

On April 24, 2026, the Ministry of Finance (“MOF”) issued Regulation of the Minister of Finance Number 23 of 2026 on the Amendment to Regulation of the Minister of Finance Number 240/PMK.06/2016 on the Management of State Receivables (“MOF Regulation 23/2026”). MOF Regulation 23/2026 amends the procedures for managing state receivables by expanding the government's authority to collect debts, including from various forms of collateral and the assets of businesses.

MOF Regulation 23/2026 was issued to enhance the settlement of state receivables in line with business developments and the use of financial instruments. Based on its recitals, MOF Regulation 23/2026 was established to implement the provisions of Article 66 paragraph (5) letter a of Government Regulation Number 28 of 2022 on the Management of State Receivables by the State Receivables Affairs Committee, as amended by Government Regulation Number 4 of 2026. In its implementation, the government has expanded debt collection methods beyond auctions to include asset takeovers, collateral utilization, and the seizure of various types of assets, including digital financial instruments owned by businesses.

Comparison

MOF Regulation 23/2026 amends, inserts, and repeals several mechanisms previously regulated under Regulation of the Minister of Finance Number 240/PMK.06/2016 on the Management of State Receivables (“MOF Regulation 240/2016”). The following table provides a comparison between MOF Regulation 23/2026 and MOF Regulation 240/2016:

Key Provisions

Expansion of Operational Definitions, Legal Subjects, and Risk Instruments

MOF Regulation 23/2026 amends Article 1 by reorganizing 37 terms in the management of state receivables. Details of these definitional changes include:

1. Party Obtaining Rights and Place of Civil Confinement, which respectively regulate the party receiving asset transfers and facilities for civil confinement;

2. Financing schemes, such as channeling and risk sharing;

3. Collection actions, including civil confinement and travel bans abroad; and

4. Asset valuation bases, namely the use of Market Value (Nilai Pasar) and Liquidation Value (Nilai Likuidasi).

Repeal of Unilateral Debt Determination Procedures

MOF Regulation 23/2026 repeals provisions regarding the determination of the state receivable amount by the Branch of the State Receivables Affairs Committee (Panitia Urusan Piutang Negara, “PUPN”) (PUPN Branch) without the debtor’s agreement, as stipulated in Article I point 2 and point 3, which repeal Article 62 and Article 63. Under this amendment, the PUPN Branch no longer determines the state receivable amount through a State Receivable Amount Determination Decree (Surat Keputusan Penetapan Jumlah Piutang Negara, “PJPN”) if the debtor does not agree with the amount of their obligation or fails to fulfill a summons for the preparation of a Joint Statement.

Expansion of Valuation Objects to Financial and Digital Assets

MOF Regulation 23/2026 amends Article 233 by expanding valuation objects in the management of state receivables to include financial assets. Based on Article 233 paragraph (2), these objects include:

1. Cash;

2. Digital or crypto assets;

3. assets held in financial service institutions such as deposits, savings, current account balances, giro, or similar forms;

4. Bonds, shares, or other securities; and

5. Receivables/claims as well as capital participation instruments in other corporate entities.

Furthermore, Article 233 paragraph (2) stipulates that valuations of Collateral Goods and/or Other Wealth are conducted for various settlement forms, including sales through auction, sales without auction, redemptions at values below the binding value, debt remission, asset utilization, asset submission, and asset takeovers by the state.

Physical Control of Seized Assets by the State

MOF Regulation 23/2026 adds Section Five A, which regulates Article 186A and Article 186B regarding the state's control over seized assets. Based on Article 186A paragraph (1) letter a and Article 186B paragraph (1), the state may control and use collateral goods or other wealth after the issuance of a Seizure Warrant (Surat Perintah Penyitaan, “SPP”). Ministries or agencies acting as applicants may use such assets for government administration or public interests. This control is established through a decree of the Chairperson of the PUPN Branch for a period of 2 (two) years. Article 186B paragraph (8) stipulates that the use of assets by the state during this period does not reduce the amount of debt remaining to be settled.

Utilization of Seized Assets by Third Parties

MOF Regulation 23/2026 adds Article 186C, Article 186D, and Article 186E, which regulate the utilization of seized assets by third parties. Based on Article 186C paragraph (1), the PUPN Branch may utilize collateral goods through cooperation with third parties without the debtor's consent. These third parties may include State-Owned Enterprises, Regional Government-Owned Enterprises, Village-Owned Enterprises, cooperatives, individuals, or other businesses. Article 186D paragraph (2) stipulates that the Service Office conducts valuations by Government Valuers or Public Valuers to determine the Market Value. Subsequently, Article 186E regulates forms of utilization, including leases, contracts, utilization cooperation, and operational cooperation, for a maximum period of 5 (five) years. Third parties are required to pay the utilization value within a maximum of 30 (thirty) calendar days from the date the decree is issued; otherwise, the decree becomes void.

Debt Settlement through Submission and Takeover of Property Assets

MOF Regulation 23/2026 amends Article 294 and adds Article 297A through Article 297D, which regulate debt settlement through asset submission or takeover. Based on Article 294 paragraph (2), debt settlement may be conducted through cash payments, asset submission, and/or asset takeovers by the state.

1. Article 297A stipulates that the submission of assets in the form of land or buildings must be certified in the name of the debtor and meet certain requirements, including not being in dispute, not being under the unlawful control of other parties, and not being pledged to other parties. 

2. Articles 297B and 297C regulate that asset valuations by Government Valuers are reviewed by BPKP. The handover process, including the signing of the minutes of transfer and the deed of relinquishment of rights before a Land Deed Official (Pejabat Pembuat Akta Tanah, “PPAT”), must be completed within a maximum of 3 (three) months after approval is granted.

3. Article 297C also stipulates that the state may take over asset ownership for the purposes of government administration or public interests, and the decree of the Chairperson of the PUPN Branch may serve as the basis for registering the transfer of rights over land or buildings. 

4. Furthermore, Article 297B paragraph (8) and Article 297D stipulate that taxes and administrative costs arising from the asset transfer are the responsibility of the debtor, and the value of the taken-over assets is calculated to reduce the remaining principal debt.

Standardization of Terminology and Administrative Formats

MOF Regulation 23/2026 regulates changes in the use of terminology and the format of official documents in state receivables management. Article II point 1 establishes the use of the terms “Penanggung Utang” (Debtor) and “Penjamin Utang” (Debt Guarantor) to replace previous terms in all administrative processes effective from the enactment of this regulation. MOF Regulation 23/2026 also regulates the format of official documents as set forth in Annexes A through G, including warrants of civil confinement, decrees on the control of seized assets, and right takeover documents. Additionally, these annexes contain the structure of asset utilization and takeover decrees, which include:

1. Approval of asset objects;

2. Maintenance obligations and prohibitions on changing asset status without approval;

3. Operational arrangements;

4. Cost charging; and

5. The validity period of the decree.
   

Closing

MOF Regulation 23/2026 transforms the procedures for managing state receivables by expanding the government's authority in debt collection. These changes include the repeal of debt amount determination without agreement, the addition and adjustment of definitions used in state receivables management, and the expansion of valuation objects to include financial assets such as digital assets, deposits in financial institutions, and securities. MOF Regulation 23/2026 also regulates the control and utilization of seized assets by the state, including through cooperation with third parties, and establishes timeframes and payment obligations for such utilization. Furthermore, debt settlement is no longer limited to cash payments but also includes the submission or takeover of assets, including property assets for government or public interests, with specific provisions for valuation, handover processes, and the transfer of rights. Additionally, MOF Regulation 23/2026 establishes uniform terminology and administrative formats throughout the state receivables management process. In practice, debtors remain liable for taxes and administrative costs arising from asset transfers, and the value of submitted or taken-over assets is calculated to reduce the remaining principal debt.