Implementation of Auctions of State-Owned Enterprise (BUMN)/Regional State-Owned Enterprise (BUMD) Assets in Indonesia

Abstract

Auction is recognized as an agreement on the sale and purchase of goods through an open tender which is governed by the Civil Law and Common Law. Sale by auction is aimed at obtaining a price that is profitable to the owner of the goods. Auction is conducted based on the principles of transparency, competition, legal certainty, efficiency and accountability. Auctions for State-Owned Enterprise (BUMN)’s /Regional State-Owned Enterprise (BUMD)’s assets may be carried out in three ways, namely competitive tender, limited tender and direct appointment in accordance with the principles of transparency, accountability and efficiency. If neither the public tender nor the limited tender can be carried out, then the sale of BUMN’s and BUMD’s assets may be done by direct appointment, however it must be conducted in good faith and in a transparent and accountable manner.

Keywords: Auction, transparent and accountable, BUMN/BUMD.