Government Also Popularizes Auction

Auction in the past few years is still not a popular system of buying and selling in Indonesia. This system is usually only known and used by business players in automotive or electronics sectors. However, it has started to be implemented by the government, especially to dispose goods confiscated from people who violated the law.

The most popular auctions by the government are held by the Corruption Eradication Commission (KPK). The KPK held auctions of confiscated goods from corruption cases, mediated by State Assets and Auction Service Office (KPKNL) Jakarta III.

The KPK has held these auctions since last year. As cited from, Thursday (September 21, 2017), the KPK took part in the auction expo held by Indonesian Auction Houses Association (Perbali). Perbali is an organization of private auction houses which was established in May 2015. Interestingly, the KPK auctioned cars of famous brands.

Aside from cars confiscated by the KPK, the government has also auctioned goods that were used as bribes. The auctions were held by the State Assets Directorate General (DJKN), mediated by State Assets and Auction Service Office (KPKNL) Jakarta II. The auctioned goods included gold and smartphones.

Regional administrations also hold auctions; one of them was held by Regional Asset Management Agency (BPKAD) Pelalawan, Riau. At least 36 official vehicles were auctioned at the end of last August. The auction was open for public and held online through KPKNL's website. Most of the goods auctioned were motor vehicles. 

Not only state assets, the government had also auctioned personal collections and items of Vice President Jusuf Kalla and his wife, Mufidah Jusuf Kalla. The collections of several ministers in the Working Cabinet were also auctioned voluntarily at Galeri Nasional Indonesia on February 28, 2018. Finance Ministry State Assets Directorate General Auction Director Lukman Effendi, as cited from (February 26), said that this activity was a way of the government to popularize auction.

The government introduced conventional auction and e-auction. In conventional auction, the participants must go to the auction house to bid directly. In e-auction, participants can register themselves and create an active account on lelang

However, Lukman said, auction participant must have e-ID and taxpayer number (NPWP). The documents must exist so that the government can ensure that all participants are clearly registered in the state documents. 

After registering, the participant is obliged to transfer deposit to a holding account, at least one working day before the auction. The amount is as agreed initially. Aside from transfer, the participant can hand over the deposit to the treasurer or auction officer of KPKNL Jakarta at least one hour before the auction.

If the participant did not win the auction, the deposit will be returned in full. However, the one confirmed as the winner must settle the payment within five days after the auction.

According to Finance Ministry data, the net revenue from auctions held in 2017 reached Rp16.45 trillion. As much as Rp5.6 trillion was from the government's auctions, while the remaining amount was from auctions by private companies. Meanwhile, the amount of non-tax state revenue (PNBP) gained from auctions last year reached Rp385 billion.

IBID-Balai Lelang Serasi as one the active auction houses in Indonesia also actively popularizes auctions. IBID has been routinely auctioning various automotive products such as four-wheel and two-wheel vehicles, as well as gadgets and heavy machinery.

IBID holds auctions every week, with a total frequency of 50 auctions in one month. IBID's network has reached more than 30 big cities in Indonesia.

Established in 2007, IBID is a subsidiary of PT Serasi Autoraya (SERA) under Astra. Anyone can participate in an auction, either companies or individuals. For further information, you can find it in this page or directly access IBID’s website