<![CDATA[State-confiscated property refers to state property derived from seized objects or items of evidence that have been declared forfeited to the state pursuant to a final and binding court decision, as well as other property declared forfeited through a judicial determination or court decision. Effective management of such assets constitutes an important aspect of state asset administration because it supports accountability and the optimization of economic value for the state. The disposal of these assets is generally carried out through public auction by the State Property and Auction Services Office (Kantor Pelayanan Kekayaan Negara dan Lelang [KPKNL]). However, assets that remain unsold must continue to be maintained to preserve their economic value, which may generate substantial storage, security, and maintenance costs. To address this issue, Regulation of the Minister of Finance of the Republic of Indonesia No. 145/PMK.06/2021 permits the utilization of state-confiscated property through lease agreements. Under this mechanism, certain maintenance and security responsibilities may be transferred to the utilization partner, while the state retains ownership of the property and receives Non-Tax State Revenue (Penerimaan Negara Bukan Pajak [PNBP]). Nevertheless, legal uncertainty remains regarding the characteristics of state-confiscated property that may be leased and the legal enforceability of the resulting lease agreements. Using normative legal research with statutory and conceptual approaches, this study examines the characteristics of state-confiscated property eligible for lease and analyzes the legal validity of such agreements. The findings are expected to provide a conceptual framework for optimizing state asset management and to support the enhancement of Non-Tax State Revenue through legally sound asset-utilization practices.]]>
