Mataram Mall Management Officially Returns to Local Government After Build-Operate-Transfer Agreement Expires

Multitech Publisher Kamis, Juli 02, 2026
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FORMOSA NEWS - Mataram - The management of the Mataram Mall commercial complex has officially been taken over by the Mataram City Government following the expiration of its commercial cooperation contract on July 11, 2026. This transitional legal step is the focus of a recent scientific study conducted by a legal research team from Universitas Mataram, consisting of Aditiya Yudha Lagantara, Djumardin, and Aris Munandar.

Published in 2026, the study details how the Build-Operate-Transfer (BOT) instrument, locally known as Bangun Guna Serah (BGS), serves as a crucial solution for regional governments to optimize state assets without burdening public budgets, while ensuring post-contract legal certainty.

A Financing Solution Amidst Regional Budget Limitations

Infrastructure and public facility development across various regions in Indonesia frequently encounter financial constraints due to the limited capacity of the Regional Revenue and Expenditure Budget (APBD). On the other hand, local governments often possess strategic land assets that remain underutilized.

Partnering with private investors through public-private partnership schemes offers a practical solution to minimize fiscal risks. Under a BOT scheme, private partners are granted the right to construct and operate buildings to gain economic benefits over a specified timeframe. Once the contract period expires, all assets and supporting facilities must be returned in full to the local government as the land owner.

Research Approach: Assessing the Enforcement of Law in the Field

To analyze the dynamics of this transition, Aditiya Yudha Lagantara and his team at Universitas Mataram utilized a normative-empirical legal research method. The researchers did not only focus on textual analysis of written laws (doctrinal) but also examined how these regulations operate in practice through social interactions among stakeholders.

This approach integrates three main perspectives:

  • Statutory Approach: Analyzing the alignment between the Indonesian Civil Code (KUHPerdata), Government Regulations, and Regulations of the Minister of Home Affairs regarding regional asset management.
  • Conceptual Approach: Drawing on legal doctrines and contract law principles concerning commercial agreements entered into by government bodies.
  • Sociological Approach: Observing social interactions and regulatory responses when a contract between the government and a private entity concludes in the field.

Key Findings: A New Chapter in Mataram Mall Management

The comparative study on Mataram Mall yielded several vital findings regarding the termination of the partnership with the third party:

Official Termination of the Contract

The BOT agreement for the commercial area between the Mataram City Government and PT Pacifik Cilinaya Fantacy formally expired on July 11, 2026. With the conclusion of this term, the previous partnership is officially deemed no longer operational.

Transfer of Physical Control of the Asset

Although the handover was not carried out through a specific ceremonial event, the Mataram Mall building is now completely returned to and placed under the direct control of the Mataram City Government.

Obligation to Follow New Procedures (Beauty Contest)

Should PT Pacifik Cilinaya Fantacy or any other investor wish to resume commercial management in the future, they cannot simply extend the old contract. A new partnership must be initiated from scratch through an open and competitive selection process, known as a beauty contest. The researchers noted that a Hak Guna Bangunan (HGB) scheme could be adopted as a potential structure for the new contract.

Transparency in Royalty Rate Assessment

To determine the royalty rate for the next cooperation agreement, the local government is required to commission an asset appraisal by an independent appraiser. This professional valuation will serve as the objective basis for establishing fair economic value and partnership terms for both parties.

Implications and the Importance of the Dual Legal Dimension

The study reinforces that BOT scheme agreements hold a unique, hybrid legal nature. On one hand, they are private contracts subject to the principles of Book III of the Indonesian Civil Code—where the government and private entities stand as equals under civil law. On the other hand, the involvement of a public institution introduces elements of public law, as it concerns accountability in managing regional wealth for the public interest.

Applying the principles of good governance, legal certainty, and transparency remains key to ensuring that the optimization of regional assets proceeds smoothly without causing financial harm to state revenue or discouraging private investment.

Researcher Profiles

  • Aditiya Yudha Lagantara, S.H. – Lead researcher and alumnus of the Faculty of Law, Universitas Mataram, specializing in positive contract law and administrative law.
  • Djumardin – Senior lecturer and researcher at Universitas Mataram, expert in civil law and regional asset management.
  • Aris Munandar – Legal academic at Universitas Mataram, focusing on empirical legal studies and public policy.

Research Source

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