Optimizing Village Asset Management: Insights into Situbondo Regulation No. 52 of 2023

The landscape of rural development in Situbondo is undergoing a significant transformation. The Situbondo Regency Regulation (Perbup) Number 52 of 2023 concerning Village Asset Management was established as a strategic response to the implementation of National Strategic Projects within the regency. The primary goal of this policy is to stimulate growth, ensure equitable development, and enhance community welfare. By refining how Village Assets are handled, the local government aims to create a more effective and efficient administrative environment that aligns with national standards.

This regulation introduces crucial amendments to the previous legal framework. Specifically, it inserts Article 59A between Articles 59 and 60 of Perbup Situbondo Number 64 of 2017. This new provision emphasizes the strict Asset Management of compensation funds received by villages. Under this rule, any compensation payments must be deposited into a designated village treasury account as a temporary deposit. The choice of the bank for these deposits is determined by a Regent’s Decree, ensuring a high level of accountability and professional financial oversight.

Key Provisions for Compensation and Land Replacement

A central pillar of the new Asset Management strategy involves the utilization of compensation funds. Article 59A mandates that any money received as compensation for Village Assets must be used to purchase replacement land within a maximum timeframe of six months. This strict deadline encourages village officials to act decisively in restoring the village’s physical assets to maintain local productivity.

However, the regulation also provides a safety net for complex situations. If the six-month period expires and suitable replacement land has not been secured, the funds must be re-budgeted as capital expenditure for land purchase in the following fiscal year. During this transition, the valuation of the new land must adhere to the fair market value determined by official appraisers. This ensures that the Village Assets are replaced with property of equivalent or greater value, protecting the village’s long-term wealth and interests.

Financial Flexibility and Transparency

Transparency is the cornerstone of modern Asset Management. Regulation No. 52 of 2023 recognizes that in some cases, a small surplus may remain after the replacement land is purchased. If this surplus is relatively small—specifically with a maximum limit of Rp70,000,000.00—the village is permitted to use the funds for other essential needs. This flexibility allows for better resource allocation at the local level.

All remaining funds must be recorded in the village treasury account as official village income. It is important to note that these compensation funds do not cover operational or supporting costs for land procurement; such expenses must be handled separately according to prevailing laws. By clearly separating the compensation for Village Assets from operational costs, the Situbondo government prevents the dilution of village capital and ensures that development funds are used for their intended purpose.

Detailed Regulatory Changes in Article 59A

The formal amendment process for Asset Management in Situbondo is meticulous. Article 1 of the new regulation specifies the insertion of Article 59A into the amended 2017 framework. The detailed points of this article are as follows:

1. Compensation payments for Village Assets enter the village treasury account at a designated bank as a temporary deposit.
2. The designation of the bank is established through a Regent’s Decree.
3. The funds must be used to buy replacement land within 6 (six) months of receipt.
4. If the timeframe is exceeded without securing land, the funds must be re-budgeted for land purchase in the next fiscal year.
5. Future land purchases must use the fair value calculated by authorized appraisers.
6. If a small surplus remains after the purchase, it may be used for purposes other than land.
7. The maximum allowed surplus for non-land use is set at Rp70,000,000.00.
8. This surplus must be entered into the village treasury as official village income.
9. Compensation funds exclude operational and supporting procurement costs.
10. The provision of operational and supporting costs must follow separate legal procedures.

Conclusion: Building a Sustainable Future

The implementation of Situbondo Regency Regulation No. 52 of 2023 marks a new era for Village Assets. By providing a clear roadmap for Asset Management, the government empowers village leaders to act with confidence and integrity. This framework not only protects the village’s physical legacy but also ensures that the benefits of national projects are felt directly by the local residents.

As Situbondo continues to grow, the collaboration between the government and the community in managing Village Assets will be vital. Transparent, accountable, and forward-thinking management will foster sustainable development and create a stronger economic foundation for all villages in the regency. Proper adherence to these regulations is the key to achieving equitable prosperity across Situbondo.

Are you a village official looking to align your local records with these new standards? Ensuring your Asset Management documents are updated is the first step toward legal compliance and regional success.

Visit the Village Regulations page for official access.