Situbondo Regent Regulation No. 57 of 2025: A New Era for Village Asset Management

The Situbondo Regency Government has taken a decisive strategic step in strengthening rural economic independence through the enactment of Situbondo Regent Regulation No. 74 of 2025. This regulation serves as the official amendment to the previous rule, Regent Regulation No. 22 of 2025, which governs the procedures for village asset management.

This transformation stems from an urgent need to optimize the potential of village wealth, ensuring it contributes maximally to the welfare of the local community while adapting to the legal dynamics of 2026. In the current fiscal landscape, village assets are no longer viewed as passive administrative inventories. Instead, they are positioned as primary capital for sustainable village economic development. With transparent and accountable management, these assets are expected to become a robust source of Village Original Income (PADes) to fund various community empowerment programs.

The issuance of Situbondo Regent Regulation No. 57 of 2025 brings a breath of fresh air for village officials and asset managers. It offers higher flexibility in the utilization of village wealth without neglecting the principles of justice and protection of public assets. For Village Secretaries, the Village Consultative Body (BPD), and rural activists in Situbondo, understanding this substance is the key to avoiding administrative and legal pitfalls in the future.

Legal Foundations and the Fundamental Logic of Change

Situbondo Regent Regulation No. 57 of 2025 was officially enacted on September 19, 2025, by the Regent of Situbondo, Yusuf Rio Wahyu Prayogo. Juridically, the primary legal basis refers to Law Number 6 of 2014 concerning Villages and its latest amendments. Furthermore, this regulation is highly synchronized with central government policies, such as Minister of Home Affairs Regulation No. 3 of 2024, which updated national village asset management to create digital integration of village wealth data.

The fundamental reason for this amendment was the identification of several provisions in the old rule (Perbup 22/2025) that no longer aligned with real-world conditions. Many village governments complained that previous procedures were too rigid, leaving productive village assets “idle” due to lengthy bureaucratic processes. The Situbondo Regency Government recognized the need for procedural adjustments, particularly in asset utilization through rental mechanisms, making the process faster and more flexible while maintaining equity for all residents.

By utilizing a more modern legal framework, this regulation aims to minimize conflicts of interest in managing village treasury lands and buildings. It reaffirms that every step taken by the Village Head in managing assets must be based on deliberation and collective decision-making, ensuring assets are legally protected from unauthorized transfers or actions that harm village finances.

The Crucial Shift: Rental Mechanisms via Verification Teams

The most significant highlight of Situbondo Regent Regulation No. 57 of 2025 is the total revision of village asset rental procedures. In the previous regulation, the rental process was often mandated through a public auction mechanism, which was considered rigid and costly. Through this latest regulation, the auction mechanism has been drastically changed to a more humanistic and tactical verification mechanism.

According to the amended Article 15, the rental of village assets is no longer executed by an auction committee but by a Verification Team, which holds a deeper role in assessing tenant eligibility. This team is formed through a Village Head Decree based on a collective agreement with the BPD. This step ensures that the tenant selection process is collective and not dominated by unilateral executive decisions.

The composition of the Verification Team in Situbondo Regent Regulation No. 57 of 2025 is designed to involve various stakeholders to create a healthy system of checks and balances. The team structure consists of:

• Chairperson: One person from the Village Community Empowerment Institution (LPM).
• Secretary: The Village Secretary (Sekdes).
• Members: Two village officials (Perangkat Desa).
• Additional Member: One person from the LPM element.

The team’s primary duty is to verify and validate the completeness of rental applications, tenant supporting documents, and conduct in-depth research to test the economic and social feasibility of the proposed rental plan.

Eliminating Public Auctions for Land and Buildings

Situbondo Regent Regulation No. 57 of 2025 officially abolishes the public auction mechanism for renting village treasury lands (Tanah Kas Desa) and village-owned buildings. Article 16 now affirms that rentals are simply carried out by the Verification Team with a focus on justice and transparency. Many clauses in the old version of Article 16 that governed complex technical auctioning have been entirely removed to simplify the rural bureaucracy.

This policy of removing auctions aims to allow village assets to be managed immediately by local residents without the burden of auction procedures that often only favor those with large capital. With the verification system, village residents have a more equal opportunity to rent village treasury land for agricultural or commercial activities. However, this simplification does not mean a relaxation of oversight; rather, the Verification Team bears a greater responsibility to ensure that assets fall into the hands of tenants committed to maintaining the asset and paying retributions on time according to the agreement.

This change also provides time certainty for prospective tenants. In an auction system, there was often uncertainty about when the process would end. With the verification system, the timeframe from application to tenant appointment is more measurable. This is highly beneficial for village farmers who need certainty regarding planting seasons, ensuring that agricultural productivity is not disrupted by convoluted administrative affairs.

Scope and Types of Managed Village Assets

Despite the major shifts in rental mechanisms, the basic principles of what is categorized as a village asset remain consistent with general management provisions. Village assets in Situbondo Regent Regulation No. 57 of 2025 include all goods belonging to the village derived from original village wealth, purchased through APB Desa funds, or obtained through grants and other legally valid rights.

Primary objects of management include:

• Village treasury lands, often referred to as tanah bengkok or titisara.
• Village markets and animal markets as economic hubs.
• Boat moorings and fish auction sites for coastal villages.
• Village forests and village-owned springs as strategic natural resources.
• Public baths, village tourism sites, and village public cemeteries.

Every stage of management, from requirement planning and procurement to utilization and reporting, must be carried out in an orderly manner. Village asset managers must understand that every change in the physical or legal status of an asset must be well-documented in the village inventory book. With such diverse assets, village governments are required to have distinct management strategies to ensure each asset type produces maximum economic value for village income.

Structure of Village Asset Management Officials

Management success depends heavily on the capability of the personnel involved. Situbondo Regent Regulation No. 57 of 2025 establishes clear levels of responsibility for managing public wealth. This structure ensures every stage has a designated person who can be held accountable.

The Village Head acts as the Power Holder with the highest authority in setting management policies, from use and utilization to strategic decisions on asset transfer through village deliberations. Meanwhile, the Village Secretary serves as the Assistant Manager tasked with researching asset requirement plans, maintenance plans, and coordinating oversight of the overall inventory process.

At the technical level, there is the Asset Management Officer, usually held by the Head of Affairs (KAUR). The KAUR has detailed duties, including proposing requirement plans, conducting periodic physical inventories in the field, and compiling periodic reports on the condition and status of the managed assets. Synergy between these three levels is crucial to ensure the data reported to the regency is valid and matches the facts on the ground.

Asset Utilization Beyond Rental Schemes

Beyond the rental mechanism that has undergone significant revision, Situbondo Regent Regulation No. 57 of 2025 also provides space for asset utilization through other forms, provided the asset is not currently being used for primary village government duties. These forms aim to optimize asset utility so they do not become mere maintenance cost burdens.

Other utilization schemes include:

• Pinjam Pakai (Loan for Use): Utilization between village governments or with local community institutions without monetary compensation, usually for social activities with a maximum duration of 7 days.
• Kerjasama Pemanfaatan (KSP): Carried out with third parties (SOEs, Regionally Owned Enterprises, or Private Sector) for projects requiring large capital with a maximum duration of 15 years.
• Bangun Guna Serah (BGS) and Bangun Serah Guna (BSG): Partnership schemes where a partner builds a structure on village land. After the contract (maximum 20 years) ends, the building automatically becomes the property of the village government.

All income generated from these utilization schemes must be deposited in cash into the Village Treasury Account and recorded as legitimate Village Original Income (PADes). This is vital for maintaining village financial accountability and ensuring the fruits of village wealth truly return to fund community development.

Security and Digital Asset Administration

One of the strongest mandates in Situbondo Regent Regulation No. 57 of 2025 is the village government’s obligation to perform comprehensive asset security. This security cannot exist only on paper; it must cover three main aspects: administrative security through orderly bookkeeping, physical security through fencing or safe storage, and legal security through asset certification. The regulation affirms that all village lands must be certified in the name of the Village Government to avoid unilateral claims.

In the aspect of administration, village governments are required to use official applications managed by the Ministry of Home Affairs (SIPADES) to ensure asset data is integrated nationally. This digitalization aims to facilitate the audit and monitoring process by central and regional governments. Physical inventories are conducted periodically, at least once every five years, to ensure the existence and condition of assets.

Through digital administration systems, the Village Secretary can easily monitor when a rental period will end, allowing the Verification Team to immediately prepare the administration for the next period. This significantly supports bureaucratic efficiency and prevents village income leaks caused by missed rental periods without formal contract renewals.

Strict Rules on Asset Exchange (Ruilslag)

Village asset exchange, commonly known as ruilslag, is a highly sensitive process regulated with strict rules in Situbondo Regent Regulation No. 57 of 2025. Exchanges are only permitted for highly strategic interests, such as National Strategic Projects (PSN), urgent public interest, or for the development of the village itself.

This process must not harm the village. Asset replacement must be carried out in the form of cash that benefits the village or replacement land of fair value based on results from independent appraisal services. Furthermore, every exchange process must go through hierarchical approval starting from the Regent to the Governor, even requiring special permission from the Minister if it involves the private sector or non-governmental entities. The strictness of the ruilslag rules aims to protect strategic village assets from commercialization efforts that do not provide long-term benefits to the local residents.

Conclusion and Transition Period Preparation

Situbondo Regent Regulation No. 57 of 2025 brings a fresh breeze to the efficiency of asset management in villages across Situbondo Regency. With the simplification of rental mechanisms from an auction system to a verification system by a special team, village governments are expected to move more nimbly in capturing local economic opportunities without sacrificing justice and transparency. This amendment represents the regency government’s trust in village officials to manage their “households” with greater maturity and responsibility.

All village officials are required to immediately adjust their asset management based on these latest rules no later than one year after the regulation was enacted. This transition period should be used to form the Verification Team and conduct a re-inventory of assets whose rental periods are soon to expire. With high compliance, village assets will truly become the primary pillar in realizing prosperous and financially independent village communities in the future.

Summary of Provisions: Perbup No. 57 of 2025

The dynamics of village asset regulations in 2026 demand that we always update our information so that administration remains on the right track. Any asset management currently in progress before this regulation was issued can still be carried out by adjusting to these latest provisions.

Visit the Village Regulations page for official access.