The Nature of Utilizing Unused State-Owned Property in the Form of Leasing

Abstract

The utilization of unused State-Owned Property (BMN) through leasing represents a strategic effort to optimize state assets and increase Non-Tax State Revenue (PNBP). This study explores the nature, objectives, and challenges of leasing idle BMN as a legal and administrative mechanism to transform non-productive assets into productive resources that contribute to public welfare. Using a combined normative and socio-legal approach with qualitative methods, the research examines the regulatory framework, including Law No. 1 of 2004, Government Regulation No. 27 of 2014 in conjunction with Government Regulation No. 28 of 2020, and Minister of Finance Regulation No. 115/PMK.06/2020, as well as their implementation in practice. The findings reveal a significant gap between das sollen (the legal expectations) and das sein (the actual practice), where many assets remain underutilized due to administrative complexity, limited promotion, and weak oversight mechanisms. Strengthening supervision systems, streamlining procedures, and implementing digital platforms are recommended to enhance transparency, accountability, and efficiency. This study contributes to the discourse on public asset management by emphasizing the importance of aligning regulatory frameworks with practical implementation to maximize state asset productivity and fiscal benefits.