Madiun City Government Raup Rp305 Million From Auction 69 Official Vehicles

JAKARTA - The City Government (Pemkot) of Madiun, East Java, received revenue of Rp305 million from the auction of 69 official vehicles, which the process was carried out behind closed doors.

Head of Accounting and Assets Division of the Regional Financial and Asset Management Agency (BKAD) of Madiun City, Lilis Hartutik, said that the revenue of Rp. 305 million was the accumulated amount of 61 motorcycles and 8 units of red-plated three-wheeled vehicles which were all sold in auction.

"People's interest in participating in the auction is quite high and the auction price has increased significantly. From the original limit price of IDR 194 million, it turned out to have increased to IDR 305 million. There was an increase of around 63 percent," said Lilis Hartutik, quoted by Antara, Sunday.

In addition to the condition of the vehicle which is still quite good, he continued, the closed system also affects the auction results. The closed system was deliberately chosen so that there would be healthy and profitable offers.

"Each bidder cannot see the price of the offer. The highest offer is taken as the winner," said Lilis.

Proses selanjutnya, para pemenang lelang bisa melakukan pempayasan dan pengurusan dokumen kendaraan di Kantor Pelayanan Kekayaan Negara dan Lelang (KPKNL).

Lilis said the target for payment is no later than five working days after the determination of the winner. While the auction fee is 2 percent of the auction price. After the payment, the KPKNL will transfer it to the city government which will then enter the regional treasury.

He added that the auction was conducted to remove regional property (BMD). In addition, to minimize vehicle maintenance financing posts in regional apparatus organizations (OPD).

According to the data, 61 motorbikes and 8 units of three-wheeled vehicles that were auctioned were still relatively young. Namely, from 1992 to 2010.