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JAKARTA - The government through the Ministry of Finance (Kemenkeu) encourages all ministries and institutions to insure their assets. This was stated by the Director of State Property of the Ministry of Finance, Encep Sudarwan.

According to Encep, the insurance scheme is useful as a hedging instrument from potential losses in the future.

“So this asset insurance brings two benefits at once. First, it will protect in case of natural disasters and the second will be more orderly in administration," he said in a virtual discussion on Friday, July 16.

Encep added that currently there are 39 ministries and institutions that have started to insure all assets controlled. The government itself targets all central agencies to be able to do this until the end of 2021.

However, he revealed that in this first stage not all state assets will be included in the hedging scheme. This is because the policy of refocusing the budget due to the pandemic has limited the financial space of ministries and institutions.

"Perhaps at this time not all of it, it could be half or a quarter of the assets in the ministry/institution, because after all the policy of refocusing the budget for the pandemic has limited funds. However, all of them have to start insuring their assets no later than the end of this year,” he said.

For information, the Ministry of Finance noted that currently there are 89 ministries and institutions that are responsible for managing state assets.

Meanwhile, the total asset value until the close of 2020 is known to be Rp. 11,098.67. This figure grew by Rp631.14 trillion from the 2019 period which was Rp10,467.53 trillion.

For information, most of the country's wealth is in the form of fixed assets worth Rp. 5,976.01 trillion, the majority of which is in the form of land with an amount of Rp. 4,539.89 trillion.


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