ACC 250_ASU_ASSIGNMENT 2024_OPTIMIZING FIXED ASSET MANAGEMENT IN REALIZING GOOD GOVERNANCE IN THE PROVINCIAL GOVERNMENT OF JAKARTA

OPTIMIZING FIXED ASSET MANAGEMENT IN REALIZING GOOD GOVERNANCE

IN THE PROVINCIAL GOVERNMENT OF JAKARTA

INTRODUCTION:

The reformation in 1998 had an impact on one of the changes in the governance

paradigm. In 1999, Law No. 22/1999 on Local Government was enacted, which was expected to

accommodate the change in governance paradigm from centralized to decentralized, prioritizing

the principles of democracy, community participation, equity and justice, paying attention to

differences in potential and diversity, and preventing national disintegration. Furthermore, in

2004, after a fundamental evaluation of Law No. 22 of 1999, the government issued Law No. 32

of 2004 as the legal basis for local government. With this law, the implementation of regional

government emphasizes that local governments can regulate and manage their own government

affairs in their regions according to the principles of autonomy and assistance tasks directed at

accelerating the realization of public welfare by taking into account the principles of democracy,

equity, justice, privileges and specificities of a region in the NKRI system (Gadjong, 2007).

Regional autonomy is understood as the authority of autonomous regions to regulate and manage

the interests of local communities according to their own initiatives based on community

aspirations in accordance with laws and regulations. The essence of regional autonomy is

democratization and empowerment1 . The democratization that wants to be raised is in an effort to

realize good governance. The concept of good governance is present to display a simple

government organizational structure, the right policy agenda, a clear division of institutional

duties, balanced authority, professional personnel, efficient public service procedures, established

supervisory institutions and a firm accountability system. The better a region's public

accountability is supported by qualified human resources, the more effective regional asset

management will be (Pekei et al. 2014).

In the context of public organizations such as central/local governments, asset management

is in principle part of government financial management. One important aspect of supporting the

success of government financial management is having an effective and efficient asset

management system. Therefore, it becomes very important for local governments so that existing

assets can be managed optimally (Hidayat 2012). In addition, the importance of the asset

management framework in the public sector in local governments has been recognized and

realized throughout the world, its application is not simple because of the many problems

associated with managing public sector assets (Hanis et al. 2010). The mandate of Law No. 17 of

2003 and Law No. 1 of 2004, among others, requires all Regional Governments and SKPD under

them to make Financial Statements. Prior to the submission of the local government's Financial

Report from the local leader to the DPRD, the report should be submitted to the DPRD.

The financial statements must first be audited by an independent state institution, namely

BPK, no later than 6 months after the end of the fiscal year.2 In conducting audit activities of local

government financial reports, BPK will conduct audits down to the SKPD level, in order to see the

fairness of the presentation of SKPD financial reports. Orderly administration and orderly

management of regional assets in SKPD greatly affect the management of regional assets as a

whole. BPK audit results on the fairness of the presentation of financial statements are BPK's

opinion and findings at the end of the audit period. There are four types of opinions given by BPK,

namely Unqualified (WTP), Reasonable with Exceptions (WDP), No Opinion (TMP) and

Unreasonable (TW). The opinion expected to be obtained by all government agencies is WTP.

This opinion means that the financial statements presented by government agencies have been

declared to meet Government Accounting Standards and are free from material misstatement and

are considered to have an adequate internal control system. The opinion on the financial

statements is not based on whether there is corruption in a particular entity or not.3 The DKI

Jakarta Provincial Government from 2013-2015 still received a WDP opinion with one of the

causes or findings being the problem of managing its fixed assets. Based on BPK's opinion and

recommendations, the DKI Jakarta Provincial Government should hurry to make improvements in

its regional fixed asset management, as a form of accountability to all stakeholders and ideals to

realize clean governance.

The DKI Jakarta Provincial Government is an area that is also the capital of the country

which has an impact on the number and value of assets in it. Jakarta as the country's showcase

requires the support of a lot of infrastructure and other infrastructure facilities as an attraction and

as a means of fulfilling the demands of community needs. The status of the capital also affects the

value of fixed assets, especially land assets in the Jakarta area.

Fixed assets consist of land, equipment and machinery, buildings and structures, irrigation roads

and networks, other fixed assets and construction in progress. The amount of fixed assets

experienced a modest increase and decrease in value during the period 2011-2015. The causes of

the increase include the procurement of new assets and the addition of asset maintenance that can

increase the value of assets or capitalization, while the reduction of assets is caused by the

elimination of assets due to the useful life or recording corrections as a result of inventory,

reconciliation and BPK findings. Starting in 2015, the DKI Jakarta Provincial Government

implemented accrual basis accounting so that this year it began calculating depreciation on the

value of fixed assets. In addition, the value of fixed assets is the account item with the largest

value of total assets, even against the total Balance Sheet. The amount of fixed asset value

compared to the total asset value can be seen from Table 2.

Fixed assets have a value of more than 75% of the total assets presented in the DKI Jakarta

Provincial Government Balance Sheet. The large percentage of fixed assets owned, demands the

need for strong fixed asset management, as an important part and priority of local government

management to support good governance.

The DKI Jakarta Provincial Government with its regional specificities has an

organizational structure that is different from other local governments. The five municipalities and

one district are administrative in nature and act as an extension of the Provincial Government in

providing services to the community. The Jakarta Provincial Government currently has no less

than 42 SKPD, 677 Regional Work Units (UKPD) and 2000 Goods User Units (UPB). The

number of work units in the DKI Jakarta Provincial Government encourages strong fixed asset

management so that overall asset management can be carried out in an orderly manner and reliable

accuracy and accountability. In addition to local government elements, asset management cannot

escape the role of the community and the private sector. The community as the largest shareholder

of the government has an obligation to participate in monitoring and maintaining the use of

regional assets and has the right to participate in conveying the needs of service infrastructure as

public facilities and adequate social facilities. Likewise, the private sector, through local

government policies, can contribute to providing part of its social responsibility to the

community.local government and the community through the provision of fasos fasum asset

obligations. The awareness of each party to maximize its role in the management of fixed assets of

DKI Jakarta Province will create good synergy in the overall management of local government.

Structuring regional asset management in accordance with the spirit of good governance is

currently the right momentum because it has political support from the government. The demand

for the implementation of good governance in the management of state/regional assets cannot be

delayed anymore. Of course, this will open our common horizons about the importance of regional

asset management, especially regarding fixed assets so that it can be expected to be able to

improve the status of opinion to unqualifiedopiniona or Unqualified (WTP)4 .

Problem Formulation:

Every local government faces problems with its asset management. Fixed asset management

starting from the beginning of planning and budgeting to reporting and accountability requires

accuracy in handling. Professional and modern management of state assets by prioritizing good

governance is expected to be able to increase the trust of state financial management from the

public/stakeholders. Regional fixed asset management which was previously only an

administrative job, but after the issuance of Government Regulation No. 6 of 2006 which requires

more advanced management in improving efficiency, effectiveness and creating added value in

managing fixed assets or what is often called regional property. Emphasis on the principle of good

governance is an integral thing in the management of regional property. According to Mardiasmo

(2002), the basic principles in the management of regional property are (1) proper planning; (2)

efficient and effective utilization; (3) supervision (monitoring).

The results of BPK's examination of local government financial statements in the form of an

opinion accompanied by notes or findings of the examination results. The examiner makes

findings after going through all the audit procedures completely. Audit findings are accompanied

by recommendations for improvement so that regional financial management will be better in the

following year. One of the findings of the BPK examination is regarding the management of

regional property, especially regarding fixed assets. Fixed asset management in the DKI Jakarta

Provincial Government is still considered to have weaknesses as presented in Table 3.

Regional Fixed Assets and Regional Property (BMD):

Government Regulation No. 71 of 2010 concerning Government Accounting Standards

states "assets are economic resources controlled and/or owned by the government as a result of

past events and from which future economic and/or social benefits are expected to be obtained,

both by the government and the community, and can be measured in units of money, including

non-financial resources necessary for the provision of services to the general public and resources

maintained for historical and cultural reasons". According to Hidayat (2012), what is called assets

are goods, which in the legal sense are called objects, consisting of immovable and movable

objects, both tangible and intangible, which are included in the assets / assets or assets of an

agency, organization, business entity or individual individual. In the composition of the

government's Financial Statements, assets are presented on the Balance Sheet to provide

information about economic resources owned by local governments that can provide economic

and social benefits in the future (Mahmudi, 2010). Assets are classified into current assets and

non-current assets. An asset is classified as current if it is expected to be realized immediately or

held for use or sale within 12 (twelve) months from the reporting date. Assets that do not fit these

criteria are classified as non-current assets. Current assets include cash, short-term investments,

receivables and inventories. Non-current assets include assets of a long-term nature, and intangible

assets that are used either directly or indirectly for government activities or for public use. Non-

current assets are classified into long-term investments, fixed assets, reserve funds and other

assets.

Fixed assets in PSAP 07 of Appendix I of PP 71 of 2010 are defined as tangible assets that

have a useful life of more than 12 (twelve) months to be used in government activities or utilized

for the public interest. According to Riverbark "fixed assets represent a significant investment of

public dollars for local governments and public authorities. Items that constitute fixed assets are

tangible in nature and normally have a useful life o f at least two years. Commonly used

classifications of fixed assets are land, buildings, equipment, and vehicles".5

The main characteristics of fixed assets are: 1) fixed assets are acquired for use in the

company's operational processes and fixed assets are not intended for sale; 2) in general, fixed

assets have a long useful life (several years) and are therefore depreciated over that useful life; 3)

fixed assets can physically be seen. According to Mathews and Perera in Halim et al. (2012), fixed

assets are grouped into several types types, namely: 1) fixed assets in terms of substance which can

be divided into tangible assets and intangible assets; 2) depreciated or non-depreciated fixed

assets; 3) fixed assets by type, including: land, buildings and structures, machinery, vehicles,

furniture, inventory or equipment, infrastructure, and other fixed assets. Meanwhile, according to

PP Number 71 of 2010 concerning Government Accounting Standards, fixed assets are classified

based on similarities in their nature and function in the operational activities of the accounting

entity. The classification of fixed assets are:

a. Land, including land acquired for the purpose of use in government operations and in a state

of readiness for use

b. Equipment and machinery, including machinery and motor vehicles, electronic devices, and

all office inventory, and other equipment with significant value and useful life of more than

12 (twelve) months and in ready-to-use condition.

c. Buildings and structures, including all buildings and structures acquired with the intention of

being used in government operations and in a ready-to-use condition.

d. Roads, irrigation and networks, includes roads, irrigation and networks built by the

government and owned and/or controlled by the government and in ready-to-use condition.

e. Other fixed assets include fixed assets that cannot be classified into these groups, which are

acquired and utilized for government operations and are in a ready-to-use condition.

f. Construction in progress includes fixed assets that are under construction but not yet fully

completed at the date of the financial statements.

Goods are part of regional assets which are certain units that can be valued / calculated /

measured / weighed, excluding money and securities. BMD according to Government Regulation

Number 27 of 2014 concerning Management of State / Regional Property is all goods purchased

or obtained at the expense of the Regional Revenue and Expenditure Budget or from other legal

acquisition. This definition is not much different from the Regulation of the Minister of Home

Affairs Number 17 of 2007 concerning Management of Regional Property, namely Regional

Property includes: a) goods purchased or obtained at the expense of the APBD; and b) goods

originating from other legal acquisitions. Goods as referred to in paragraph (1) letter b include: a)

goods obtained from grants / donations or the like; b) goods obtained as the implementation of

agreements / contracts; c) goods obtained under t h e provisions of the law; or d) goods obtained

based on court decisions that have obtained permanent legal force. Seeing the definition of fixed

assets and BMD, what is called regional fixed assets is regional property that has a useful life of

more than 12 months and is used to support the operations of the main tasks and functions of local

government work units and is used for the benefit of the community, which comes from the

APBD and other legal sources.

An asset can be recognized as fixed assets if it is tangible and meets the criteria of having a

useful life of more than 12 (twelve) months, the acquisition cost of the asset can be measured

reliably, it is not intended to be sold in the course of operations entity's normal operations and are

acquired/built with the intention of being used. Local governments will recognize a fixed asset

when the fixed asset has been received or transferred ownership rights, and or when control of it

transfers. Therefore, if there is no evidence that an asset is owned or controlled by an entity, the

fixed asset cannot be included in the balance sheet. The principle of recognizing fixed assets when

they are owned or controlled applies to all types of fixed assets, whether acquired individually or

in combination, or acquired through purchase, self-managed development, exchange, spoils, or

grants.

Asset Management and Management BMD:

Management according to Hasibuan (2009) is a typical process consisting of planning,

directing and controlling actions carried out to determine and achieve predetermined goals through

the utilization of human resources and other resources. Stoner and Freeman in Safroni (2012)

define management as a process of planning, organizing, leading, and controlling the efforts of

organizational members and the process of using all organizational resources to achieve

predetermined organizational goals. In addition, according to Terry in Sukarna (2011), it also

states that "management is the accomplishing of a predetermined objective through the efforts of

other people" or management is the achievement of goals that have been set through or together

with the efforts of others. Management can be said to be a process which is a series of actions to

achieve something to achieve a goal or as written on the Management Study HQ page

"management is a set of principles relating to the functions of planning, organizing, directing and

controlling, and the application of these principles in harnessing physical, financial, human and

informational resources efficiently and effectively to achieve organizational goals.".6 .

Management can also have a broad meaning, namely management as a process, art or science.

Management is called a process because there are several stages in it to achieve goals, namely

planning, organizing, directing and supervising. Management is referred to as an art because

management is a tool or way for managers to achieve goals, where its application and use depends

on each manager, which is largely influenced by the manager's own conditions and disposition.

And management is called a science because management can be studied and studied for its truth

(Athoillah, 2010).

The many definitions of management that exist and develop today, accumulate them into

managerial functions. Basically, managerial functions can be classified into 2 main types, namely

organic functions and supporting functions. Organic functions are all the main functions that

absolutely need to be carried out by managers in order to achieve their goals and objectives targets

that have been previously set, while supporting functions are various activities carried out by

people or work units in the organization and are intended to support all organic functions of

managers (Siagian 2012).

Terry (1994) divides the four basic functions of management, namely planning,

organizing, actuating and controlling. These four management functions are abbreviated and

better known as POAC management functions. The following is the definition of each

management function still according to Terry (1994):

a. Planning, namely

"Planning is the selecting and relating of facts and the making and using of assumptions

regarding the future in the visualization and formulation of proposed activation believed

necessary to achieve desired results". ".... Planning is the selecting and relating of facts and the

making and using of estimates or assumptions for the future in the way of describing and

formulating the activities needed to achieve the desired results." According to Siagian (2012)

planning is actually making certain efforts consciously and systematically to overcome a situation

that if not overcome will cause problems for the organization. It can also be interpreted that

improving planning skills can be identified with improving decision-making skills. Every

management from the lowest level to the top management of an organization will make decisions

about the organization, only t h e form and nature are different depending on the level of

managerial position. In addition, if planning is viewed as decision-making and uses problem

solving as one of its techniques, it can be said that planning is a conscious and systematic effort to

solve problems that are expected to be faced by an organization for a certain period of time in the

future. `

b. Organizing, namely

"Organizing is the determining, grouping and arranging of the various activities needed

necessary for the attainment of the objectives, the assigning of the people to these activities, the

providing of suitable physical factors of enviroment and the indicating of the relative authority

delegated to each Respective activity. "...Organizing is the determination, grouping, and

arrangement of the kinds of activities needed to achieve goals, the placement of people

(employees), to these activities, the provision of physical factors suitable for work needs and the

appointment of authority relationships, which are delegated to each person in relation to the

implementation of each expected activity. Terry also suggests the following organizing principles:

1) the objective or goal; 2) departmentation or division of labor; 3) assign the personnel or

placement of labor; 4) Authority and Responsibility or authority and responsibility; 5) Delegation

of authority or delegation of authority. While Siagian (2012) states that the result of organizing is

the organization, and the organization is a tool used by humans. to achieve a certain goal, which

means that the organizing function is not and should not be used as a goal. Included in organizing

are the communication channels and information networks designed and implemented to run the

organization. The view on the utilization of information needs to consider 2 things, namely the

first. required openness of all parties in providing information to other parties who need it. This

consideration fulfills the principle of transparency in the sense of good governance. The second

consideration, on the other hand, is the need for accuracy in providing information to other parties,

to prevent information from falling to parties who are not entitled to have or know it. Confidential

information must be guarded by the organization, especially the managers or leaders of the

organization. The organizing function is not only a matter of determining the structure with a

straight line of accountability and flowchart structure with the division of tasks in each part of the

organization, but also relates to the attitudes and behavior of organizational members in utilizing

their organization.

c. Actuating (Implementation / Movement), namely

"Actuating is setting all members of the group to want to achieve and to strike to achieve the

objective willingly and keeping with the managerial planning and organizing efforts.

"....Movement is to arouse and encourage all members of the group so that they want and try hard

to achieve goals sincerely and in harmony with the planning and organizing efforts of the

leadership. The above definition shows that whether or not the goal is achieved depends on

whether or not all members of the management group move, starting from the top, middle and

bottom levels. All activities must be directed to their targets, considering that activities that are not

directed to their targets are only a waste of labor, money, time and material or in other words a

waste of tools of management. This is certainly mis-management. The achievement of goals not

only depends on good planning and organizing, but also depends on movement and supervision.

Planning and organizing are only a strong foundation for movement that is directed towards the

intended target. Movement without planning will not be effective because it is in planning that

goals, budgets, standards, work methods, procedures and programs are determined.

d. Controlling, namely

"controlling can be defined as the process of determining what is to be accomplished, that is

the standard, what is being accomplished. That is the performance, evaluating the performance,

and if the necessary applying corrective measures so that performance takes place according to

plans, that is conformity with the standard. "...Supervision can be formulated as a process of

determining what must be achieved, namely the standard, what is being done, namely the

implementation, assessing the implementation, and if necessary making improvements, so that the

implementation is in accordance with the plan, which is in harmony with the standard" with

standards (measures). Controlling comes from English which translates as supervision and

control. Thus the meaning of controlling can be interpreted more broadly than supervision or vice

versa. Basically, controlling activities include activities to mobilize, anticipate errors and

deviations, supervise by looking and assessing between implementation and planning and

applicable provisions, correcting and straightening towards the right direction in an organization.

According to Pusdiklatwas BPKP (2007) for the public sector, supervision can be classified

based on:

a. Direct and indirect supervision

Direct supervision is supervision carried out personally by the leader or supervisor by observing,

examining, checking, checking himself "on the spot" at the place of work and receiving reports

directly from the implementer, while indirect supervision is carried out by studying reports

received from the implementer, both oral and written.

b. Preventive and repressive supervision

Preventive supervision is more intended as, a supervision carried out on activities before the

activity is carried out, so as to prevent deviant activities. For example, such supervision is carried

out by the government in order to avoid deviations in the implementation of state finances that

will burden / harm the state. Repressive supervision is a supervision carried out on an activity after

the activity has been carried out or carried out. For example, repressive supervision is carried out

at the end of the fiscal year, where the budget that has been determined is then submitted to the

report.

c. Internal and external supervision

Internal supervision is supervision carried out by people or bodies within the organizational unit /

institution concerned, such as the Inspectorate of local governments or the Inspectorate of

Ministries and BPKP. Meanwhile, external supervision is supervision or examination carried out

by supervisory units that exist outside the supervised organizational unit / institution, such as BPK

and KPK.

The definition of asset management according to the US Department of Transportation in

Hidayat (2012) is "Asset management is a systematic process of maintaining, upgrading, and

operating physical assets cost-effectively. It combines engineering principles with sound business

practices and economic theory, and it provides tools to facilitate a more organized, logical

approach to decision making. Thus, asset management provides a framework for handling both

short and long-range planning. (Asset management is a systematic process to maintain, renew,

and operate cost-effectively physical assets. Asset management combines engineering principles

with sound economic and business theory practices, and provides tools to facilitate a more

organized, logical approach to d e c i si o n making. As such, asset management provides

framework for handling planning, both short and long term).

According to Bertovic et al. in Widayanti (2010) several asset management models that can

be used as recommendations for local governments are: 1) Develop a good data base system; 2)

Understanding transition issues; 3) Classifying property; 4) Real estate valuation and business

valuation; 5) Creating rules for income-generating properties; 6) Intensive financial analysis of

projects, properties and portfolios; 7) Deregulation of the rental business; 8) Property reporting

system 9) Management consolidation; and 10) Strategic planning.

While Britton et al. in Siregar (2004), said "define good asset management in terms of measuring

the value of properties (assets) in monetary terms and employing the minimum amount of

expenditure on its management.". Asset management itself has developed quite rapidly starting

with a static orientation, then developing into dynamic, initiative, and strategic. Table 4 provides

an overview of the transformation process of asset management in a substantial perspective.

1. Property/ Review/ Survey

2. IT applications in management applications

3. Optimization of asset utilization

After the Second World War, asset management has the main scope to control the cost

of utilization or use of assets in supporting the operation of local governments. In addition, there

was also an effort to conduct an inventory of unused local government assets. However, in future

developments, the scope of asset management has expanded to include asset value, asset

management accountability, land audit, which is an audit of land utilization, property surveys in

relation to monitoring market developments. property, application of information systems in asset

management and optimization of asset utilization. More recently, asset management has increased

its scope to be able to monitor asset operational performance as well as investment strategies for

asset optimization (Siregar, 2004).

Looking at the definitions of management and fixed assets, it can be interpreted that fixed

asset management is a series of activities to plan, organize, implement and control something

tangible and intangible goods / objects, which have economic value and useful life, with a period

of more than 12 (twelve) months owned and / or controlled by an entity / organization. Looking at

the definition of fixed assets and BMD, it can be interpreted that fixed assets are part of BMD.

BMD management is a series of activities and actions on regional property which include planning

needs and budgeting, procurement, receipt of storage and distribution, use, administration,

utilization, security and maintenance, valuation, elimination, transfer, guidance, supervision and

control, financing, and compensation claims (Article 1 paragraph 28 Permendagri No. 19 of 2016)

as shown in Figure 1. According to Mahmudi in Hidayat (2012) the asset management cycle at the

regional level generally includes stages such as planning, procurement, use/utilization, security,

maintenance and rehabilitation as well as elimination/transfer.

The main purpose of asset management is to help organizations meet service objectives

effectively and efficiently. Still according to Hidayat (2012) asset management has several

principles, namely: a) Integrated, that is, asset management decisions are integrated with strategic

planning; b) asset planning decisions are based on an evaluation of various alternatives. c)

accountability is applied for asset condition, use, and performance; d) write-off decisions are

based on an analysis of methods that result in the availability of a net return within a reasonable

trading framework; e) an effective control structure is applied for asset management. The

principles of asset management are derived from general notions and are based on a life cycle

approach. Asset management according to the Victorian Government (1995) is a continuous

process covering the entire life cycle of an asset as shown in figure 2.

The difference between the stages in Indonesia and the asset management activities in the

Victorian government is that the stages are more concise but have described the entire

management cycle. The following is a description of the stages of BMD management which are

also the stages of fixed asset management in Indonesia:

Needs Planning and Budgeting :

The beginning of a stage in management is planning. Likewise with the stages in BMD

management. Needs planning and budgeting are part of the stages of management or management

of regional property. In Permendagri Number 19 of 2016, the needs planning and budgeting stage

is also mentioned as the first stage of the entire BMD management stage. Needs planning

according to Permendagri is an activity to formulate details of regional property needs to link past

procurement with the current situation as a basis for future actions. For budgeting in Permendagri

Number 19 of 2016, it is not mentioned specifically, but in Article 19 (2) it is implied that the

planning of goods needs takes place simultaneously with budgeting as stated below "Planning

Needs as referred to in paragraph (1) is one of the bases for SKPD in proposing budget provision

for new initiatives and baseline figures as well as preparing work plans and budgets. Article 20

regarding guidelines for planning goods needs must refer to one of the price standards also implies

the existence of budgeting activities in the preparation of the Regional Property Needs Plan

(RKBMD). According to BPPK (2010), planning is an activity to formulate the details of the

needs of State / Regional Property (BMN / D) to link past procurement with the current situation

as a basis for taking future actions.

Victorian State Government (1995) in Hidayat (2012) states that the initial stages of asset

management include needs analysis, economic assessment, planning and budgeting. Needs

analysis must be carried out by all organizations, both private and public organizations, carefully

over the inventory of equipment and infrastructure by considering all options for meeting asset

needs. Options include both asset solutions and non-asset solutions as requested by strategic

management and the role that various sectors may provide. The economic appraisal stage is a

systematic consideration of the costs and benefits of the various asset and non-asset solutions that

have been identified. Planning is an important means of achieving successful objectives through

the use of assets. The plans, decisions and activities of the department responsible for asset

management must be fully integrated with the planning process. The budgeting stage is planning

regarding asset funding. Overall asset management requires a commitment of funds over its useful

life, for example financing for the procurement or purchase of assets, construction development,

maintenance of assets to extend the useful life of the asset itself. Funding needs for assets must be

calculated to be covered by identifiable funding sources.

Implementation of BMD Management :

Implementation is a whole series of management processes that consist of

from:

1. Procurement

Procurement is a series of activities whose process is carried out based on the principles of

efficiency, effectiveness, transparency and openness, competition, fairness and accountability. The

process of procurement activities is based on policies with various aspects of objectives including

community empowerment to provide business opportunities, which means providing employment

opportunities, especially for small businesses in order to reduce unemployment (BPPK 2010).

Procurement of government goods and services according to Law Number 70 of 2012 concerning

the Second Amendment to Presidential Regulation Number 54 of 2012. 2010 concerning

Government Procurement of Goods/Services is an activity to obtain goods/services by

Ministries/Agencies/Regional Work Units/Institutions whose process starts from planning needs

until the completion of all activities to obtain goods/services. Procurement of state and regional

property in Indonesia generally refers to Presidential Regulation Number 54 of 2010 with its

amendments (most recently Perpres Number 4 of 2015 concerning the Fourth Amendment to

Perpres 54 of 2010). Likewise, Permendagri 19/2016 states that the implementation of regional

property procurement is carried out in accordance with the provisions of laws and regulations and

the Goods User is required to submit a report on the results of regional property procurement to

the Governor / Regent / Mayor through the Regional Goods Manager to determine its use status.

2. Usage

Use is an activity carried out by Goods Users in managing and administering regional

property in accordance with the duties and functions of the SKPD concerned. Before goods are

used by Goods Users, the Regional Head or can be delegated to the Goods Manager other than

land and buildings. with certain conditions, will determine the status of use of regional property.

Determination of the status of use is carried out for the implementation of the duties and functions

of the SKPD; and operated by other parties in the context of carrying out public services in

accordance with the duties and functions of the SKPD concerned.

3. Utilization of

Utilization is the utilization of regional property that is not used for the implementation of the

duties and functions of the SKPD and / or optimization of regional property by not changing the

status of ownership. Utilization of regional property is carried out by the Goods Manager with the

approval of the Governor/Regent/Mayor, for regional property that is in the control of the Goods

Manager and the Goods User with the approval of the Goods Manager, for regional property in the

form of part of the land and/or building that is still used by the Goods User, and other than land

and/or building. Utilization of regional property is carried out based on technical considerations

with due regard to regional interests and public interests.

4. Security

Security according to the Big Indonesian Dictionary is a process or way to secure something.

In the management of regional property, security includes physical security, administrative

security and legal security.

a. Physical security is a process to secure assets or regional property in a physical form which is

an action that must be taken by the regional property manager so that physically the goods are

maintained or in a safe condition so that the number, condition, and condition of the goods are

safe the whereabouts of the goods match those recorded in the administrative data.

b. Administrative security is a process to secure assets in the form of ensuring that asset

management procedures have been carried out in an orderly manner through the completeness

of management documents, especially ownership documents, recording, administration and

reporting of assets.

c. Legal security is a process to secure assets owned by an agency in terms of the legality of

ownership of assets or regional property. Legal safeguards are carried out especially against

central / regional government ownership of land, buildings and motorized vehicles. Legal

security can also be in the form of Agreement Letter documents and Minutes of Handover

(BAST) of goods signed by the parties involved in the handover of work / goods by giving the

legal force of the BAST. A letter of agreement or BAST that contains sentences guaranteeing

the contents of the agreement or document with a seal can be translated as having legal force.

5. Maintenance

According to Permendagri Number 19 of 2016, maintenance is a process to maintain the

condition and improve all regional property so that it is always in a good and proper condition and

is ready to be used in an efficient and successful manner and has a longer useful life. From an

accounting point of view, the value of maintenance of fixed assets within certain limits as

stipulated in an accounting policy in a local government, will usually add to the value of the fixed

asset itself or this process is often called asset capitalization. The value of a maintenance can be

considered as asset capitalization if it meets the requirements of the value limit according to

accounting policy, adds to the useful life of the fixed asset and the maintenance costs that will be

incurred have been estimated not to exceed if buying or procuring new fixed assets. According to

Hidayat (2012) maintenance policies are derived from consideration of several factors related to

the needs of the organization and the risks and consequences of asset damage. The selection of

maintenance strategies considers, among others, the nature of the asset, the risk of operating the

asset. Asset maintenance planning allows targeted actions to be taken in a timely and cost-

effective manner.

6. Assessment

Valuation is a process of activities to determine the value of assets owned, so that it can be

clearly known the value of the assets owned, or to be transferred or to be written off. The

valuation of fixed assets or state/regional property in Indonesia generally refers to Government

Accounting Standard Number 07 (PSAP 07) concerning Fixed Assets (Appendix I.08 for Accrual-

Based Government Accounting Standards and in Appendix II.08 for Cash to Accrual-Based SAP).

PSAP 07 states that tangible goods that meet the qualifications to be recognized as an asset and are

classified as fixed assets, at should initially be measured at cost. Where property and equipment is

acquired at no value, the cost of the asset is the fair value at the time the asset is acquired. In either

case, the property and equipment acquired should be valued at fair value at the time of acquisition.

For the purpose of this statement, the use of fair value at the time of acquisition for the above

circumstances does not constitute a revaluation process and remains consistent with cost as

mentioned above. Revaluation of property and equipment is only applied to valuations for

subsequent reporting periods, not at the time of initial acquisition. For the purposes of preparing

an entity's opening balance sheet, the cost of fixed assets used is the fair value at the time the

opening balance sheet is prepared. For subsequent periods after the initial balance sheet date, for

the acquisition of new fixed assets, an entity uses acquisition cost or fair value if acquisition cost

does not exist. The valuation of regional property is also carried out in the context of preparing the

regional government balance sheet, utilization, or alienation.

7. Deletion

Deletion is the act of removing regional property from the list of goods by issuing a decision

from the authorized official to release the Goods Manager, Goods User and/or the Power of Goods

User from administrative and physical responsibility for the goods i n their control. Regional

property is no longer in the control of the Goods Manager, Goods User and/or the Power of Goods

User due to the transfer of goods to parties outside the regional government, transfer of use status,

alienation, court decisions that have permanent legal force and there are no other legal remedies,

implementing the provisions of laws and regulations, destruction and other causes that are

normally considered reasonable to be the cause of deletion such as loss due to theft, fire, or as a

result of extraordinary events (force majeure) such as natural disasters.

8. Transfer of

Hidayat (2012) states that alienation is the transfer of ownership of regional property to other

parties as a follow-up to the elimination by sale, exchange, donation or participation as

government capital. Regional property can be utilized or transferred if it is not used for the

administration of local government. Forms of transfer of regional property include sales,

exchanges, grants or participation in regional government capital.

9. Administration

Administration is a series of activities that include bookkeeping, inventorying, and reporting

of regional property in accordance with statutory provisions.

a. Bookkeeping

Bookkeeping is the activity of registering and recording Regional Property in the list of goods

available to Goods Users and G o o d s Managers. The purpose of bookkeeping is so that all

Regional Property Regional property that is under the control of the Goods User and that is under

the management of the Goods Manager is properly recorded. Users / Authorized Users of Goods

are required to register and record regional property into the List of User Goods (DBP) / List of

User Proxy Goods (DBKP). List of User Goods (DBP)/List of User Power Goods (DBKP) is a list

that contains data on goods owned by each User/Power of User. Users / Authorized Users of

Goods in registering and recording in accordance with the Goods Inventory Card (KIB) per class

and codefication of goods according to Permendagri Number 19 of 2016. The assistant manager

coordinates the recording and registration of regional property into the Regional Property Register

(DBMD). Bookkeeping or recording of regional property must be carried out by the Goods

Manager, Goods User and / or Power of Goods User for regional property which is their

responsibility and control. The Goods User Official will appoint a Goods Manager to carry out the

tasks The main objective of administering regional property is to provide the correctness of the

data obtained and to know the certainty of the value, law, quantity, and condition of regional

property under his control.

b. Inventory

Based on the Decree of the Minister of Home Affairs Number 152 of 2004 concerning

Guidelines for the Management of Regional Goods, what is meant by inventory is an activity or

action to calculate, manage, organize, arrange, record data and report goods in use. One form of

inventory mandated in Permendagri Number 19 of 2016 is a census of regional property. Goods

Users conduct an inventory of regional property in the form of fixed assets other than construction

in progress, at least once every 5 years.

c. Reporting

Reporting is the process of preparing goods reports every semester and every year after

inventorying and recording. Users submit semi-annual, annual, and 5 (five) annual Goods User

reports to the Regional Head through the manager. While the Assistant Manager collects all

semesterly, annual and 5 (five) annual Goods User reports from each SKPD, the number and value

and a recapitulation is made as material for preparing regional property reports, which are material

for preparing the regional government balance sheet.

Guidance, Supervision and Control:

The definition of coaching according to the explanation of Law No. 32 of 2004 concerning

Regional Government and Government Regulation No. 79 of 2005 concerning Guidelines for

Guidance and Supervision of Regional Government Implementation is an effort made by the

Government and / or the Governor as the Regional Government.

the representative of the government in the region to realize the achievement of the objectives of

implementing regional autonomy. Permendagri Number 17 of 2007 concerning Technical

Guidelines for the Management of Regional Property states that what is meant by coaching is an

effort or activity that provides guidelines, guidance, training, supervision direction. If it is related

to the management of regional property, then what is called coaching is an effort or action that is

carried out effectively and efficiently and in a long-term perspective in the nature of change and

improvement, with the aim that the management of regional property can be carried out in an

orderly and responsible manner, has the achievement of better management performance to

provide support in achieving local government goals. Permendagri Number 19 of 2016 concerning

Guidelines for the Management of Regional Property states that the Minister provides guidance on

the management of regional property and establishes regional property management policies. In

this case, the Minister of Finance provides general guidelines for the management of state /

regional property, while the Minister of Home Affairs provides technical guidelines for the

management of regional property by referring to the general guidelines of the Minister of Finance.

Supervision and control activities according to Government Regulation Number 27 of

2014 concerning Management of State / Regional Property, are carried out on state / regional

property controlled by Goods Users. Users of state/regional property are authorized and

responsible for providing guidance, supervision and control over the use of state/regional property

under their control and the Minister/Leader of the Institution as the User of Goods must make

working procedures for the supervision and control of state property t h a t apply to the

Ministry/Institution they lead. For the scope of local government, the Head of the Region must

make technical working procedures for the supervision and control of regional property. For the

management of state property, with reference to Regulation of the Minister of Finance Number

244 / PMK.06 / 2012 jo PMK Number 52 / PMK.06 / 2016 the scope of Wasdal BMN on Goods

Users and Power of Goods Users is monitoring and controlling which includes the implementation

of use, utilization, alienation, administration and maintenance and security, for goods under their

control. State/regional property managers are authorized and responsible for providing guidance,

supervision and control over the use of state property. Supervision and Control of State / Regional

Property is carried out by Goods Users through monitoring and controlling; and / or Goods

Manager through monitoring and investigation. Goods Users monitor and control the use,

utilization, alienation, administration, maintenance, and security of State / Regional Property in

their control. The implementation of monitoring and control for offices/work units is carried out

by the Power of Goods Users. Goods Users and the Power of Goods Users may request the

Government internal supervisory apparatus to conduct a follow-up audit of the results of

monitoring and control.

The POAC management function and BMD management according to Permendagri are in

principle the same, namely a series of activities starting from planning to the stage where the

implementation of the series of activities must be accountable and controlled. The planning and

budgeting function can be equated with the planning function in management. The management

process of procurement, use, utilization, security and maintenance, valuation, alienation,

destruction, elimination, administration and guidance can be categorized as the actuating function,

and the supervision and control stage can be included as the controlling function. For the

organizing function in the stages of BMD management according to Permendagri, it is mentioned

in Chapter III of Permendagri 19 of 2016, namely regarding the Regional Property Management

Officer and how the participation of all parties, especially regional leaders from the highest level

to the level at the smallest work unit level in supporting the achievement of the objectives of asset

management or regional property.

Good Governance:

The era of regional autonomy provides a very broad opportunity for local governments to

develop their regions according to the conditions and capabilities of each region. For this reason,

the era of decentralization requires that government management be carried out professionally and

accountably. The higher dynamics of society make people demand more than in previous times.

Especially during the openness of information and communication systems like now. Good

governance is a requirement for a clean and authoritative government. The analogy in the private

sector is the demand for the implementation of Good Corporate Governance (GCG). According to

Khairandy and Malik (2007) GCG is definitively a system that regulates and controls the company

to create value added for all stakeholders. The concept of GCG in Indonesia can be interpreted as

the concept of good corporate management.

The definition of "governance" itself is very diverse, among others, it can be interpreted as

governance related to the interaction between government and society. According to the World

Bank in Inspectorate General (2007), good governance is defined as the implementation of solid

and responsible development management in line with the principles of democracy and efficient

markets, the avoidance of misallocation of investment funds, and the prevention of corruption both

politically and administratively, implementing budget discipline and creating a legal and political

framework for the growth of business activities. However, for brevity, good governance is

generally defined as good government management. Meanwhile, according to Sedarmayanti

(2012), the meaning of "good" in good governance contains two meanings as follows. First, values

that uphold the wishes or will of the people, and values that can increase the ability of the people

in achieving goals, independence, sustainable development and social justice. Second, the

functional aspect of effective and efficient governance in the performance of its duties to achieve

these goals. The word "governance" from a functional point of view can be seen from whether the

government has functioned effectively and efficiently in an effort to achieve the goals that have

been outlined, or vice versa where the government is not effective and efficient governance does

not function effectively and inefficiencies occur. According to UNDP in Shimomura (2012)

defines governance as "the exercise of political, economic, and administrative authority in the

management of a country's affairs at all levels. It comprises the mechanisms, processes and

institutions, through which citizens and groyps articulate their interests, exercise their legal

rights, meet their obligations and mediate their differences." (Shimomura, 2012).

From this UNDP definition, it can be concluded that governance has three legs, namely:

1. Economic governance includes decision-making processes that facilitate equity, poverty

and quality of life.

2. Political governance is the decision process for policy formulation

3. Administrative governance is a system of policy process implementation

In good governance, it was agreed in May 2001 by central and local government officials

and staff on the principles of good governance. The ten principles of governance are (Mudrajad

2004):

1. Participation: encourages all citizens to express their opinions in the decision-making

process, either directly or indirectly.

2. Law enforcement: ensuring that the enforcement of laws and regulations is fair and non-

discriminatory, and supports human rights by taking into account all values in society.

3. Transparency: building mutual trust between the government and the public by providing

necessary information and easy access to information when needed.

4. Responsiveness: improving the responsiveness of bureaucrats to complaints, problems and

aspirations of the community without exception.

5. Equity: providing equal opportunities for all citizens to improve their welfare.

6. Strategic vision: formulate a strategy supported by an adequate budgeting system, so that

people have a sense of ownership and responsibility for the future of the region.

7. Effectiveness and efficiency: serving the community by utilizing resources optimally and

wisely.

8. Professionalism: improving the capacity, skills, and morale of local bureaucrats so that

they can provide services that are easy, fast, accurate, and accessible.

9. Accountability: increase public accountability for policy makers in government, the private

sector, and organizations in all areas (political, fiscal, budgetary)

10. Oversight: control and supervision of public administration and development activities by

involving the community and community organizations.

The principle of good governance basically cannot be separated from the concept of public

service. In public services, the main object or target of the community. The community is the main

priority of the service needs. The community will also act as a control tool for their "servants".

The expectation of the community is a level of welfare that is getting better from time to time and

directly or indirectly directly, the community will demand the achievement of this welfare to the

state/regional organizers. The state organizer with its forum, namely the central / regional

government, is called the government. Therefore, the government has an obligation to improve the

welfare of its people in a professional and responsible manner. Efforts to create good governance

continue, although at this time it cannot be said that good governance has gone well. Former UN

Secretary General Kofi Annan said "good governance is perhaps the single most important factor

in eradicating poverty and promoting development".7

One of the efforts to realize good governance is to implement improved public services. The

main task of both central and local governments is to provide public services in order to realize

welfare for the people. In Kasim (2008) states that public service by the government is a series of

activities to do something good or benefit from the service provider to the service recipient

through the provision of goods and services according to what is regulated and organized by the

government to citizens. Goods provided as part of public services are goods that the government is

obliged to provide and the enjoyment can be widely felt by the community, such as public roads,

schools, parks, and so on.

Weak good governance can have the following impacts (Mudrajad, 2004). First, the poor

have difficulty accessing needed public services due to corrupt bureaucracy. Second, investors are

still reluctant to invest in Indonesia due to the inability of the judicial system to enforce contracts,

increasing unrest, and high levels of lawlessness and security. Third, scarce government resources

are lost due to a non-transparent, manipulative and leaky financial management and procurement

system. Without downplaying the efforts that have been made by the government so far, the

conditions of weak good governance are still found in many regions in Indonesia.

Optimizing Fixed Asset Management Regional:

According to the Big Indonesian Dictionary Fourth Edition (2008) p. 986 optimization

comes from the basic word optimal which means best, highest, most profitable, making the best,

making the highest, optimization process, method, act of optimizing (making the best, highest, and

so on), so optimization is the process, method and act of optimizing (making the best, highest,

etc.). So optimization is the achievement of results as expected or planned efficiently and

effectively. Winardi (1996) mentions that optimization can also be interpreted as a measure by

which all needs can be met of

According to Siregar (2004) asset management optimization is a work process in asset

management that aims to optimize the physical, location, value, quantity/volume, legal and

economic potential of these assets. In this stage, assets owned by local governments are identified

and grouped into assets that have potential and do not have potential. Assets that have potential are

grouped according to the region's leading sectors, both in the short, medium and long term.

Meanwhile, assets that do not have potential must be looked for the factors that cause them. The

final result of this stage is a recommendation in the form of targets, strategies and programs to

optimize the assets controlled.

The final result of this literature review is to bring up a framework of thought, namely the

relationship between asset management, in this case regional fixed assets, which must be

optimized by local governments with efforts to create good governance so that one of the

objectives of regional development to improve the quality of services to the community and the

quality of society itself can be achieved.

Previous Research Review :

Regional assets are always an interesting topic to be used as research material because of

the importance of the assets themselves in supporting the management of local government.

Before this research will be conducted and explored, there have previously been several studies

related to regional assets. Research conducted by Aras Aira (2015) who conducted research on the

role of asset management in regional development. The analysis method used is qualitative

description. The results showed that asset management has the role of providing transparency and

accountability in management, supervision, control, identifying regional economic potential so as

to provide integrated strategies and programs for the development and optimization of regional

economic potential, as a basis for optimizing original blood income (PAD), the basis for

improving work organizations, systems and procedures to improve public services and

independence.

The basis for responding to changes and regional growth in the perspective of regional

and global autonomy in an atmosphere of dynamic and global market competition, the basis for

improving and creating a new image (image) and regional marketing in the eyes of the open

market, and the basis for stimulating and increasing investment and encouraging the chain effect

of that investment on regional economic growth. In managing regional assets, the government

must consider planning needs and budgeting, procurement, receipt, storage and distribution, use,

administration, utilization, security and maintenance, valuation, deletion

The Australian Integrated Asset Management Collaborative Group's (2012) guidelines

focus on the development of guidelines that result in a strategic asset management system that

meets the needs of the organization and the community it serves. The guidelines were developed

as a result of real asset management needs identified by members of the Cooperative Research

Center for Infrastructure and Engineering Asset Management (CIEAM). The research, which was

a collaborative effort of several Australian institutions, concluded that integrated strategic asset

management is needed to meet the challenges and needs of today's society, resulting in a

comprehensive performance system for public service delivery. Economically, building and

renewing end-of-life assets is an increasingly expensive process, and must be financed by already

limited budgets. In addition, there is a growing appreciation of the importance of considering the

sustainability of the natural environment around assets.

Research conducted by Ari Hartono (2013) with the title Analysis of the Fixed Asset

Management System and its Relevance to the Annual Financial Report of the Kalimantan

Provincial Government. This research was conducted at SKPD / UPTD / Bureau / Work Unit of

the West Kalimantan Provincial Government. The method used in this research is descriptive

method, data collection techniques questionnaires, interviews and literature study / document

research with analysis tools are Permendagri 17 Year 2007 and Government Regulation No. 24

Year 2005 (SAP). The results of this study indicate that the implementation of fixed asset

management based on Permendagri No. 17 of 2007 and Government Accounting Standards at the

SKPD of the West Kalimantan Provincial Government has gone quite well. However, there are

still many indicators that have not gone well. The most prominent thing is the weakness in the

internal control system which results in the management of fixed assets is still less effective and

efficient. The results of this study also show that the fixed asset management system has a high

relevance to the BPK RI audit opinion on the West Kalimantan Provincial Government's Financial

Statements. This is reflected in the results of the BPK RI audit of the Regional Government

Financial Statements (LKPD) every year.

Tangke et al (2015) conducted research that highlighted the relationship between regional asset

management and the quality of the Makassar City Regional Government Financial Statements. Data

analysis using normality test, regression analysis and hypothesis testing with SPSS. The results showed that

optimizing asset management had a positive and significant effect on the quality of local government

financial reports. This effect can be seen from the value of the regression results which shows a positive

number of 0.293 and a significance value of 0.293.

0.000 < 0.05. One of the concrete steps that must be taken by the Makassar City Government is to

follow up on all BPK recommendations regarding asset management.

Risqy et al (2013) conducted a study entitled Administration of Local Government Assets

through the Regional Goods Management Information System (SIMBADA) in Malang Regency.

The research used a qualitative descriptive approach. The results of the study that the Malang

Regency Government, especially here DPPKA Asset Division as the manager of assets or regional

property, tries to implement the SIMBADA program in the process of managing assets or regional

property. Although in fact SIMBADA has not been fully used as a whole in the process of

managing assets or regional property. However, if carried out in an orderly manner in terms of

administration, it will be able to affect other regional asset management mechanisms. The

implementation of SIMBADA has an impact on the process of administering regional assets, both

positive and negative impacts. Therefore, there needs to be better coordination for supervision,

monitoring and evaluation for both the SIMBADA program and the regional asset managers. The

obstacles in administering assets or regional property through SIMBADA are the lack of data

availability in the field, and the lack of human resources, especially asset managers or regional

property with a background in information technology.

Tukunang (2016) examined regional asset management in the Siau, Tagulandang, Biaro

Islands Regency. This research method is a descriptive qualitative research method. The results of

the study are regional asset management in the Sitaro Islands Regency referring to the BPK RI

opinion assessment in general is good. Regional asset planning refers to the needs and

maintenance regional property as guided by the standardization of regional government work

facilities and infrastructure stipulated by the Regional Head Regulation and price standards

stipulated by the Regional Head Decree. Optimization of regional assets that should be carried out

by the Regional Government of the Siau Tagulandang Biaro Islands Regency in the use of assets.

Regional asset management needs to be improved such as utilizing a more comprehensive

management information system in all SKPDs.

Dadson (2006) explains about optimizing land asset management in Ghana in order to

achieve good governance. The research method used is descriptive qualitative. Dadson suggested

steps to optimize the management of land type assets are around legislation, organization in the

land sector, databases and maps and sustainable land system mechanisms.

Audit Scotland (2009) also conducted a study on asset management in local government.

The conclusion of this study by Audit Scotland is that good asset management can improve the

performance of local government services. The best performance can be achieved if there is

cooperation and participation of all parties in the local government.

Noviawati (2016) conducted research on optimizing regional asset management for the

implementation of regional autonomy using qualitative descriptive methods. The research explains

in theory and discusses the stages in asset management. The conclusion of the research is that

regional assets make a major contribution to the implementation of regional autonomy if done

optimally. One form of optimization of asset management is in terms of asset utilization so that it

will provide a large assessment of the increase in Regional Original Income (PAD) to support the

implementation of regional autonomy. The obstacles that arise in managing regional assets include

the lack of order in managing asset data. T h e r e f o r e , a n asset management system is

needed from planning, utilization, evaluation and monitoring of regional assets.

Research by Erizul and Yuliani (2013) with the title "Implementation of Fixed Asset

Management" using qualitative discriftive analysis method. The results showed that the

implementation of fixed asset management was not optimal. The most dominant factors

influencing the implementation of fixed as s e t management are commitment and human resource

factors.

Regional financial and asset management is an integral part of government management,

both central and regional governments. Raharja et al (2015) conducted a study entitled "Regional

Financial and Asset Management (Study on the Regional Financial and Asset Management

Agency of Lamongan Regency)". This study uses a descriptive method of qualitative approach

and uses interactive model data analysis from Miles and Huberman. The results showed that the

management of regional finances and assets in Lamongan Regency was not optimal and there

were still obstacles in its management. Obstacles exist in the discussion of regional revenue and

expenditure budget planning that is not timely in the legislature and the lack of human resources

with an accounting background. In the management of regional assets, there are problems with the

inventory of regional assets whose data processing is still not good and local government land that

has not been certified.

Research Nasution et al (2015) in "The Effect of Asset Management on the Optimization

of Assets of the Mental Hospital of North Sumatra Province". This type of research is quantitative

descriptive research with an explanatory approach. The results of the study using multiple linear

regression tests show that partially the variables of asset inventory, legal audit and asset valuation

are proven to have a positive and significant effect on asset optimization. The results of the

analysis together / simultaneously show that the three variables, namely asset inventory, legal

audit, asset valuation, are proven to have a significant / positive effect on asset optimization.

Piri (2016) researched and analyzed the effectiveness of regional property management at

the Integrated Licensing Service Office (KP2T) of North Sulawesi Province. The data analysis

method used is descriptive analysis. Data obtained through field studies. The results of the study

are that overall the management of regional property at KP2T has not been carried out effectively,

because KP2T does not carry out the entire system and procedures contained in Permendagri No.

17 of 2007. Systems and procedures that are not carried out are the unavailability of storage space

for regional property that has been received, the assessment of regional property is not carried out

because there is no utilization of regional property owned and the alienation of goods that have

been deleted.

Asset management includes several stages, each of which stages or factors influence each

other in overall asset management. Montayop et al (2016) examined the Factors Affecting the

Optimization of Fixed Asset Utilization (Study at the Regional Financial and Asset Management

Agency of Boven Digoel Regency). The study used validity testing with the Product Moment

Person correlation formula, reliability testing using alpha cronbachs, multiple regression analysis

and hypothesis testing. The results showed that asset inventory was proven to have a positive

effect on optimizing the management and utilization of fixed assets in Boven Digoel Regency.

Legal audit is proven to have a positive effect on the optimization of fixed asset management and

utilization in Boven Digoel Regency. Asset valuation is proven to have a positive effect on the

optimization of fixed asset management and utilization in Boven Digoel Regency.

Planning factors can influence whether or not asset management is good in a local

government. Research conducted by Wahyuningrum et al (2013) specializes in analyzing the

optimization of the regional asset management planning process in the Salatiga City Government.

This research uses a qualitative approach with a descriptive type. Asset management is not

optimal, which can be seen from legal issues such as legal accountability, process accountability

related to procedures that have not been followed in the administration of reports on regional

property, human resources (HR), budget problems for the maintenance of regional assets and

problems at the scheduling stage in the implementation of coaching and administration programs.

One of the stages in the management of regional property is administration. The stage of

administration of local government assets is often a priority for examination by BPK during the

audit of the fairness of the presentation of the report. financial fixed asset posts. According to

Febrianti (2016) in her research entitled "Analysis of the Effect of Fixed Asset Administration on

the Quality of Financial Statements of the Kubu Raya Regency Government" that bookkeeping,

inventory and reporting simultaneously have a positive and significant effect on the quality of

financial statements, the bookkeeping variable partially has a significant positive effect on the

quality of financial statements, the inventory variable partially has a negative effect on the quality

of financial statements, and the partial reporting variable has a significant positive effect on the

quality of financial statements. The analysis was carried out using statistical methods, namely the

validity test using the Pearson Product formula, Cronbach technique used to find instrument

reliability, classical assumption test and Multiple Linear Regression analysis.

Shabrina (2014) focused research on the asset security stage in relation to realizing

accountability in the Surabaya City Government. Data analysis in this study refers to qualitative

data analysis techniques. The results of the study stated that the implementation of Surabaya City

Government asset security both administratively, physically, and legally was ineffective but

accountable. The problems encountered from the implementation of security both

administratively, physically, and legally are the inaccurate inventory of land assets owned by the

Surabaya City Government in SIMBADA, the lack of physical security apparatus resources in

monitoring land assets owned by the City Government, the control of land owned by the City

Government by third parties without a clear legal relationship, the lack of facilities and

infrastructure such as official vehicles to monitor in the field, and some land assets owned by the

Surabaya City Government that have not been certified.

Friedman and McLernon (2016) on "Local Government and Infrastructure Asset

Management". The research was conducted using qualitative methods. The results showed that

poor asset management complicates planning and budgeting and makes local government

accountability less clear to citizens. A fully functional integrated asset management system will

demand hard work from local governments at this point. Some of the steps that can be taken to

improve the management of infrastructure assets by LGs are that local governments should follow

more closely the established procedures, once an asset is recorded on the register of an SKPD, the

SKPD concerned should ensure that funds will be allocated for operation and maintenance,

SKPDs should ensure that when an asset is transferred between SKPDs, the transfer is recognized

by the Head of the Region through an official letter, assets funded through the Indonesian

Government budget (APBN) should also be transferred to the LG and asset valuations should be

updated regularly as stipulated in PP no. 27 of 2014.

State Property (BMN) is goods sourced from the APBN and other legal sources, while

regional property is goods derived from the APBD and other legal sources. BMN management is

currently much better than BMD management. One of the supporting factors for good BMN

management is the use of a state property information system (SIMAK-BMN). Nasrudin (2015)

examines the effectiveness of the State Property Accounting and Management Information System

(SIMAK-BMN) on the management of state property.

State Asset Management. The research method carried out is qualitative descriptive with

the results of the implementation of the State Property Accounting Management Information

System when viewed from the user or user side has been running effectively, i n t e rm s of

products produced by the SIMAK-BMN Application in the form of quality BMN information

used by an entity accounting for goods, has been running effectively, top management support

factors and formalization of system development affect the satisfaction of SIA users.

Masjono and Friya (2013) in their research entitled "Accountable Management of State

Property to Support Good Governance in the World of Education" stated that the need for the

development of a prototype state property management software system using the bottom up

method. Leadership commitment is also needed to support the implementation of BMN

management. The research method used is descriptive qualitative with a bottom-up approach.

Research with the title "Evaluation of the Effectiveness of the State Property Accounting

and Management Information System (SIMAK-BMN) at the Ministry of Culture and Tourism of

the Republic of Indonesia" by Rahardiyanti and Abdurachman (2012). The research method uses

qualitative research. The results showed that the factors that influence the effectiveness of

SIMAK-BMN are Ease, Usability and System Quality.

The methods commonly used by previous researchers are descriptive qualitative and

regression methods. The problem raised by these researchers is the role of regional asset

management in general local government management. This is driven by the fact that many local

governments have experienced difficulties over the years in improving their asset management.

Many obstacles faced by local governments in implementing asset management, most of which

stem from weak internal controls and limited capacity and competence of local government human

resources handling local assets. Almost all research related to regional assets has more or less the

same goal, namely to assist local governments in improving the quality of management or

management of regional assets, so that regional assets are no longer a "negative point of

subscription" contributing to the unqualified opinion (WTP) by BPK.

The difference between this research and previous research is that if previous research only

examines certain stages in asset management or research only examines the management of

several types of assets, but this research emphasizes the importance of formulating a good or

optimal fixed asset management strategy that can be recommended to local governments in an

effort to realize good governance. Research on strategies to optimize fixed asset management or

regional property seen from the POAC managerial function has never been done in the local

government of DKI Jakarta Province. The expected results of this study are recommendations that

are suggested to be implemented in the field into programs and activities that are deemed

necessary in an effort to optimize local government asset management. In addition, the location,

time and analytical tools used are also different.

Framework of Thought:

DKI Jakarta Province is a regional government which is also the capital of the country,

therefore the Jakarta area will function as a showcase of Indonesia or as a reflection of other

regions, especially in public services and local government management. The quality of good and

bad management of a local government cannot be separated from the success in managing its

finances and regional assets. This research starts from the not optimal management or

management of fixed assets that have been run by the local government of DKI Jakarta Province

which is concluded from the BPK opinion which in the last 3 years still gets a WDP opinion with

the findings of fixed asset problems that are always a BPK record in every audit result. BPK has

been conducting an examination or audit of the LKPD of DKI Jakarta Province by testing and

exploring the reasonableness of the presentation of fixed asset figures presented in the financial

statements down to the SKPD level. Fixed asset management that has been carried out refers to the

applicable rules and regulations such as PP No. 27 of 2014 and Permendagri No. 19 of 2016.

Likewise, the BPK in conducting an examination will use 2 provisions as one of the criteria or

benchmarks in examining the management of local government assets.

The research will look at 4 POAC management functions without leaving the 11 stages of

BMD management according to Permendagri. The eleven stages of BMD management are

classified into 4 POAC management functions, namely planning (planning and budgeting),

organizing, actuating (procurement, use, utilization, security and maintenance, valuation,

alienation, destruction, deletion, administration and guidance) and the supervision and control

stage can be included as a controlling function. In each POAC function, it will be seen and

analyzed to compare the applicable provisions with the realization of the management carried out.

This analysis uses gap analysis. In addition, in each function, weaknesses and their causes will be

identified and analyzed using qualitative description and AHP. This analysis will produce various

managerial implications in the form of alternative policies and strategies for improving asset

management. Furthermore, the selected strategy will be chosen and strategic recommendations

will be formulated which are expected to strengthen fixed asset management which ultimately

supports the creation of good governance within the local government of DKI Jakarta Province.

Recommendations for realizing good governance are given to the DKI Jakarta Provincial

Government. The framework of thinking in this study is as depicted in Figure 3.

Processing and Analysis Methods Data:

The research method used in this study is a tool to test various hypotheses in research in

order to provide the best response to a condition. As described in section one on research

objectives, each objective will be achieved with certain research methods. The first objective of

this research is to evaluate the fixed asset management mechanism that has been taking place in

the DKI Jakarta Provincial Government in accordance with the applicable rules and regulations.

To analyze this first objective, the method used is gap analysis. The gap analysis method will

compare how the program or activity should be carried out according to the applicable provisions,

with the realization of the implementation of the program or activity that has been going on so far

in the local government of DKI Jakarta Province in the management of its fixed assets.

The second objective of the research is to identify and analyze the factors that cause

weaknesses in fixed asset management in DKI Jakarta Province. The method that will be used to

achieve this goal, in addition to still being continuous with the results of the gap analysis method,

is also obtained through literature study and qualitative descriptive. The definition of descriptive

qualitative is a research procedure that uses descriptive data in the form of written or spoken

words from people and actors that can be observed. A qualitative approach is a research procedure

that produces descriptive data in the form of speech or writing and observable behavior of a

subject (Furchan, 1992).

The last objective is to formulate a strategy for improving the fixed asset management

system. In this strategy formulation, the method used is the Analytical Hierarchy Process (AHP)

method. The AHP method helps formulate strategies as well as provide priority direction for

existing strategy options. The AHP method prioritizes strategies based on the perceptions of

respondents who are experts in regional asset management. The analytical methods used and the

data required are associated with the research objectives, described in Table 5.

Gap Analysis Method

The gap analysis method according to Bappenas (2009) is a method to determine

the level of performance of an institution or institution by comparing the results achieved during

implementation with the expected results. Gap analysis or often referred to as gap analysis is

useful for: 1) assess how big the gap is between actual performance and an expected performance

standard; 2) find out the performance improvements needed to close the gap; 3) become one of the

bases for decision making related to the priority of time and costs needed to meet predetermined

performance standards. The gap analysis method in this study is to identify and evaluate the

suitability of the implementation of regional fixed asset management or management seen from

the POAC management function, compared to the applicable provisions in this case is the

Regulation of the Minister of Home Affairs Number 19 of 2016.

Hierarchical Process Analysis Method

The next method used to analyze asset management problems uses Analytical Hierarchy

Process (AHP). Saaty (1986) states AHP as a flexible model that provides an opportunity for

individuals or groups to build ideas and define problems by making their own assumptions and

obtaining the desired solution from them.... In this research, AHP as a method to analyze

respondents' answers to several questions: (i) questions that measure respondents' preferences for

the level/weight of problems in asset management from the 4 stages of management, (ii) questions

that measure respondents' preferences (iii) questions about respondents' preferences for the form of

obstacles in the process of implementing activities to resolve problems in the management of

regional assets/ property. The hierarchical structure in the AHP method as shown in Figure 4.

The general purpose of the hierarchical structure is to provide alternative strategies or

policies for optimizing the fixed asset management of DKI Jakarta Province. The sources of

problems exist at each stage according to asset management, namely at :

1. Planning

Problems at the planning stage can include the absence of comprehensive planning for the

actual needs of goods in the next fiscal year, the absence of planning documents, the lack of

synergy in asset procurement planning between SKPDs and others.

2. Organizing

Reporting structure and accountability for fixed asset management, human resources

supporting asset management.

3. Implementation (actuating)

In the administration stage, the problems that are often faced are the unestablished asset system

and database, the application of accrual accounting which is still new, asset recording, asset

ownership documents, reporting systems, accounting policies, maintenance, coding, procurement

of goods and services, deletion.

4. Controlling

At this stage, the source of the problem is the weak internal control over assets owned by

the local government of DKI Jakarta Province. The actors that cause existing problems related to

BMD management include the DPRD and the Provincial Government who issue policies and

technical provisions governing asset management, and also SKPDs that still have difficulties in

managing assets in a timely and quality manner. DKI Jakarta Province, which is also the capital of

the country, allows many parties to be involved either directly or indirectly in asset management.

Private parties in this case are community participation in maintaining, controlling and supervising

the utilization of DKI Jakarta Province assets. One party that is no less important than other parties

in asset management is the regional leader. Strong commitment and support or concern from the

leadership on asset issues is still not optimal. The obstacles faced include the lack of a strong

application system for fixed assets and the weak documentation of regional asset ownership,

limited human resources (quality and quantity), the large number of SKPD, the lack of

commitment and support from the leadership and the lack of public concern, especially in

maintaining the use and utilization of assets in an orderly manner. Some alternative policies that

can be taken are strengthening the system and database, strengthening human resources

(coaching), making regional regulations or governor regulations. Governor about SOP

management assets, inventory ownership documentation, partnerships with the

private sector and the public andgradual inventory of assets. Inventory of assets and ownership

documents, especially land, buildings and motorized vehicles is a differentiated strategy with

consideration of the large value of land, buildings and motorized vehicles compared to other types

of fixed assets. Fixed assets in the form of land and buildings are also assets that are a source of

many disputes between the community and the DKI Jakarta Provincial Government.

History of DKI Province Jakarta:

Jakarta was first known as one of the ports of the Sunda Kingdom called Sunda Kalapa,

located at the mouth of the Ciliwung River. On June 22, 1527, Sunda Kalapa Port was

successfully occupied by Fatahillah's troops. After that, Fatahillah changed the name of t h e

city to Jayakarta which means "city of victory" or "city of glory", but the meaning is victory

achieved by an action or effort. The Dutch came to Jayakarta around the end of the 16th century,

after a stopover in Banten in 1596. Jayakarta in the early 17th century was ruled by Pangeran

Jayakarta, a relative of the Sultanate of Banten. In 1619, the VOC led by Jan Pieterszoon Coen

occupied Jayakarta after defeating Banten Sultanate forces and later changed its name to Batavia.

During Dutch colonization, Batavia developed into a large and important city. At that time,

Batavia only covered the area currently known as Kota Tua in North Jakarta.

When the Japanese began to enter Batavia, on August 8, 1942 the name Batavia was

changed to Djakarta Toko Betsu Shi to attract the hearts of the Indonesian people. The name

Jakarta is used to refer to the area of the former Batavia Gemeente which was inaugurated by the

Dutch East Indies government in 1905. This name is considered to be short for the word Jayakarta,

which was given by the people of Demak and Cirebon under the leadership of Fatahillah

(Falatehan). However, the Japanese leadership did not last long in Indonesia. Subsequently, in

September 1945, the Jakarta city government pledged a new name for the area, the National

Government of Jakarta City. After independence, the Dutch were ambitious to control Indonesia

through NICA. On February 20, 1950, NICA changed the name of Jakarta to Stad Gemeente

Batavia. On March 24, 1950 the city's name changed to Kota Praja Jakarta. The establishment

of Jakarta's anniversary on June 22 by Sudiro, the Mayor of Jakarta, in 1956 was based on the

tragedy of the occupation of Sunda Kalapa harbor by Fatahillah in 1527.

After the reformation period in 1999, through Law No.24 of 1999 concerning the

Provincial Government of the Special Capital Region of the Republic of Indonesia Jakarta, the

title of the local government changed to the Provincial Government of the Special Capital Region

of Jakarta and with its autonomy remains at the provincial level and not in the city area, namely

DKI Jakarta Province. The DKI Jakarta region is divided into 6 regions, namely 5

municipalities and one administrative district, Kepulauan Seribu (State Gazette of the Republic of

Indonesia Year 2005 Number 140, Supplement to State Gazette of the Republic of Indonesia

Number 4700). The first governor was lah Soemarno Sosroatmodjo who was appointed directly by

President Sukarno. Since being declared the capital city, Jakarta's population has increased rapidly

due to the need for government workers who are almost all centered in Jakarta. The Province of

the Special Capital Region of Jakarta (DKI Jakarta Province) is a province that has specificity in

the administration of the capital city.

regional government because of its position as the Capital of the Unitary State of the Republic of

Indonesia. DKI Jakarta Province is governed by laws and regulations governing regional

government and regional head elections, except for matters that are regulated separately in Law

Number 29 of 2007.

Geographical Conditions:

Astronomically, DKI Jakarta Province is located between 6°12′ South latitude and

106°48′ East longitude. The city of Jakarta is a lowland with an average height of +7 meters

above sea level. The area of DKI Jakarta Province, based on Governor Decree No. 171/2007, is

662.33 km2 of land and 6,977.5 km2 of ocean. The DKI area has no less than 110 islands spread

across the Thousand Islands, and around 27 rivers / channels / canals that are used as a source of

drinking water, fisheries and urban businesses. Based on its geographical position, DKI Jakarta

Province has boundaries: in the north, the coast stretches from west to east for ± 35 km which is

the place where 9 rivers and 2 canals flow, bordering the Java Sea, while in the south and east it

borders the territory of West Java Province, west with Banten Province (BPS, 2016).

Social, Economic and Cultural Conditions :

The population of DKI Jakarta in 2015 based on population projections from the 2010

Population Census was 10,177,924 people with an annual population growth rate of 1.02 percent.

The population density of DKI Jakarta in 2015 was 15,366.87 people per 1 km2, with West

Jakarta as the region with the highest population density at 19,017.92 people/km2. The number of

poor people in DKI Jakarta in 2014 was 412.8 thousand people. The administrative city of North

Jakarta has the largest number of poor people at 104.2 thousand people, while the Thousand

Islands has the smallest number of poor people at 2.5 thousand people. Other poverty indicators,

namely the poverty depth and severity indexes in DKI Jakarta in 2014 were 0.60 percent and 0.13

percent, respectively. DKI Jakarta's human development index (HDI) in 2015 amounted to 78.99

percent, an increase from 2014 which only amounted to 78.39. DKI Jakarta's status as the capital

of the country is a special attraction for people outside Jakarta to come, earn income and reside in

this area, so that the population of DKI Jakarta Province currently comes from various ethnic

groups. Therefore, Jakarta is often referred to as a mini Indonesia. The original ethnic group of

Jakarta is known as the Betawi tribe.

Jakarta is a city with rapid economic growth. Currently, more than 70% of the country's

money circulates in Jakarta. Jakarta's economy is mainly supported by the trade, service, property,

creative industry and finance sectors. Some of the trade centers in Jakarta that are home to The

Tanah Abang area is the center of the textile trade with a large circulation throughout Indonesia.

This area is the center of textile trade with circulation throughout Indonesia. Even for textile goods

from Tanah Abang, many are also export commodities. As for the financial sector, which

contributes significantly to the Jakarta economy is the banking industry and the capital market.

Jakarta's economy in 2015 as measured by Gross Regional Domestic Product (GRDP) at current

prices reached Rp 1 983.42 trillion and GRDP per capita reached Rp 194.87 million or 14.57

thousand US$. The structure of the Jakarta economy by business field in 2015 was dominated by

four main business fields, namely: wholesale and retail trade, and repair of cars and motorcycles

(16.65 percent); manufacturing industry (13.84 percent), construction (13.16 percent) and

financial and insurance services (10.35 percent). When viewed from the creation of Jakarta's

economic growth sources in 2015, financial services had the highest growth source of 1.09

percent, followed by information and communication at 0.94 percent; and Processing Industry at

0.65.8

Jakarta's culture is a mix of cultures from various ethnicities. Since the Dutch era, Jakarta

has attracted migrants from within and outside the archipelago. The ethnic groups that inhabit

Jakarta include Javanese, Sundanese, Minang, Batak and Bugis. Apart from the archipelago's

population, Jakarta's culture has also absorbed a lot from outside cultures, such as Arabic,

Chinese, Indian and Portuguese cultures. Jakarta is an urbanization destination for various races in

the world and various ethnic groups in Indonesia, for this reason, a communication language

commonly used in trade is needed, namely Malay. The Sundanese-speaking natives eventually

adopted the Malay language. However, many regional names and river names are still retained in

Sundanese such as Ancol, Pancoran, Cilandak, Ciliwung, Cideng, and others that still correspond

to the naming described in the ancient manuscript of Bujangga Manik which is currently kept in

the Bodleian library, Oxford, England. Although the formal language used in Jakarta is Bahasa

Indonesia, informal language or daily conversation in various regional languages will be found in

Jakarta. This is because Jakarta is a place where various ethnic groups meet.

Overview of Fixed Asset Management of DKI Jakarta Province:

Fixed assets owned by DKI Jakarta Province with a large number with various types

according to the classification of fixed assets spread throughout the DKI Jakarta Province and

controlled by each SKPD, under the coordination of the Regional Asset Management Agency

(BPAD). Referring to Permendagri Number 19 of 2016, it is stated that the BMD management

cycle in DKI Jakarta Province is carried out in stages according to the level of authority possessed.

Each user / attorney of the Goods User in carrying out BMD management makes records in

accordance with the group assets into documents that have been determined in the Permendagri.

The highest holder of fixed asset management (BMD) in DKI Jakarta Province is the Governor,

which for its implementation, both all and part of its authority is delegated to the Regional

Secretary as the Goods Manager. The organizational structure of the regional fixed asset manager

(BMD) as shown in Figure.

Characteristics of Respondents:

This research process was carried out by conducting in-depth interviews, by distributing

closed questionnaires. Respondents and questionnaires given were divided into 2 types, namely

for analysis using the gap analysis method, questionnaires were given to goods managers and

assistant goods managers in 40 SKPD / UKPD, and questionnaires for the purposes of the AHP

method were given to 5 respondents, namely 1 Head of SKPD, 1 Head of Division, 1 DPRD

member and 1 auditor from the supervisory institution. The gap analysis questionnaire consists of

several parts by asking all matters that are closely related to the implementation of fixed asset

management or regional property in accordance with Permendagri Number 19 of 2016, which is

the duty and responsibility of the goods manager. The questionnaire for the purposes of the AHP

method, consists of several parts that compare one factor with another, which is more important

according to the respondent's perception.

Goods managers and assistant goods managers are positions in SKPD/ UKPD in charge of

managing technical fixed assets or regional property that are the responsibility of SKPD/ UKPD.

The Head of SKPD is an Echelon II Official as the highest decision maker in the SKPD as well as

an input provider in the formulation of financial and asset management policies in DKI Jakarta

Province. The Head of Division is an Echelon III Official as the person in charge of technical

implementation of SKPD programs and activities as well as a party deemed competent in the

development of asset management within DKI Jakarta Province. Furthermore, DPRD members are

parties who are considered relevant to the planning and supervision process of local government

programs and activities, and auditors are competent parties in the field of supervision.

Gender

The questionnaires distributed did not distinguish between male and female gender. The

distribution of respondents to be used as targets in the study in terms of the gender of the

respondents is presented in Table.

Position

The target respondents for the AHP method in this study were Echelon Officials in SKPD

and parties relevant to the DKI Jakarta Provincial Government regarding fixed asset management

policies. Target Respondents for the gap analysis method in this study are personnel in

SKPD/UKPD who serve as Goods Managers or Assistant Goods Managers. Related respondent

positions are presented in Table 7.

Work experience

Experience at work is the capital of someone who will carry out a job next. In this study,

respondents' work experience is not only work related to regional property but also previous

experiences outside regional property. Information about respondents' experience is presented in

Table 8.

Actuacting Stage

The implementation stage of asset management is the stage that has the biggest gap

compared to other stages. The implementation stage has the most sub-stages with the longest cycle

among the other stages, so it is very natural that this stage of management requires priority

attention and is carried out with full accuracy and prudence. Implementation is the realization of

the budget planning that has been formulated previously, starting from the preparation stage of

asset procurement or purchase. Each SKPD / UKPD will comb through their respective Budget

Implementation Documents (DPA) to see the realization of the previous proposed goods needs.

The implementation of goods procurement in the DKI Jakarta Provincial Government has

followed the applicable regulations, namely Presidential Regulation Number 4 of 2015 concerning

the Fourth Amendment to Presidential Regulation Number 54 of 2010 concerning Procurement of

goods / Services. Procurement of goods / construction up to a value of Rp100,000,000,000; and

consulting services work up to a value of Rp10,000,000,000; handled by the Procurement Officer /

Committee in the SKPD, while the procurement of goods / construction with a value above

Rp100,000,000,000 and consulting services above a value of Rp10,000,000,000; handled by the

DKI Jakarta Provincial Goods and Services Procurement Service Agency (BPPBJ).

Furthermore, after the asset has completed the procurement process until it is received by

the SKPD/UKPD, the use activity process begins. The DKI Jakarta Provincial Government bases

the use of assets on the procurement or purchase of goods document including the Go o d s

Handover Report (BAST) document. In general, assets will be directly used by the proposing or

procuring SKPD/ UKPD, after the physical goods are received. If the asset is directly used and

utilized by the SKPD/ UKPD concerned, it will be recorded directly into the inventory book and

KIB SKPD/ UKPD or it can also be distributed to the service delivery unit under SKPD/ U K P D ,

such as schools and user communities through RT/RW. However, not all goods handover

processes a re followed by t i m e l y BAST and given directly by the SKPD that owns the

procurement budget, especially goods given to school UPBs. This condition causes difficulties in

recording assets by the school UPB because the data contained in the BAST is limited. The use

and recording of assets in most SKPD/UKPD/UPB is only based on when the assets are received,

without a Use Decree. Not all Goods Users and Power of Goods Users have made requests for

determination of the status of use of a ss e t s , especially assets of machinery equipment and other

fixed assets. Assets such as land, buildings and motorized vehicles have had their Use Decrees

partially issued by the Governor or the Governor has delegated some of the authority to issue Use

Decrees to the Sekda as the Goods Manager.

Asset utilization in the DKI Jakarta Provincial Government is regulated by DKI Jakarta

Governor Regulation Number 55 of 2012 concerning Utilization of Regional Property. Asset

utilization is managed and coordinated by the BPAD Asset Development, Control and Utilization

Division, Asset Utilization Sub-Division. The asset utilization sub-sector of BPAD has duties

related to asset utilization such as: a) processing applications for asset utilization in the form of

build-to-use/build-to-sell, cooperation in utilization and cooperation in infrastructure provision; b)

carrying out the auction process for cooperation in utilization and cooperation in infrastructure

provision; c) carrying out the auction process for billboard points in city infrastructure and

facilities that have been determined by the Governor; d) collecting and recording the

administration of cooperated regional assets; e) carrying out monitoring and evaluation activities

of optimization of regional asset utilization; f) carrying out the process of termination and

withdrawal of utilization of cooperated regional assets; g) carrying out reconciliation of

cooperated assets; h) coordinating the implementation of cooperation in the utilization of regional

assets and billboard point utilization agreements. Utilization of assets can be carried out by the

DKI Jakarta Provincial Government itself through Goods Users / Power of Goods Users or by

third parties outside the DKI Jakarta Provincial Government. BPAD conducts inventory and

continuous monitoring of the forms of utilization of assets owned by the DKI Jakarta Provincial

Government by parties outside the local government. Supporting documents, the period of

utilization and the implementation of the contents of the utilization agreement are the main focus

of attention in the process of inventorying and monitoring and evaluating asset utilization.

Jakarta's status as the capital of the country allows many assets to be utilized by third parties

outside the DKI Jakarta Provincial Government, as well as weak control and administration of

assets used by third parties in the past, so it is estimated that there are still many potential assets

belonging to the DKI Jakarta Provincial Government that have been used by third parties but have

not been inventoried and the utilization agreement has not been made. There are many forms of

asset utilization such as leasing, borrowing and use, Utilization Cooperation (KSP), Bangun Guna

Serahah or Bangun Serah Guna (BGS / BSG) within the DKI Jakarta Provincial Government. To

examine each application for utilization of regional property, a Regional Property Utilization

Consideration Team was formed, which is domiciled under and is responsible for to the Governor.

The Regional Property Utilization Consideration Team, with the direction of the Regional

Secretary of DKI Jakarta Province. The Regional Property Utilization Team is tasked with: a)

Receiving and administratively examining the application submitted by the applicant; b)

Examining and discussing the proposal / application letter submitted by the applicant including

administrative, financial, technical, juridical aspects and the amount of contribution; c) Conducting

field research / review and making minutes; d) Providing and submitting consideration advice to

the Governor; e) Preparing an answer letter to the rejection or approval of the utilization of

Regional Property from the Governor to the Applicant; f) Preparing the Governor's Decree; and g)

Preparing the Agreement script, Handover Minutes and other necessary documents. Control of

regional property that is loaned, leased or utilized, technically administratively carried out by

BPAD. Control over the implementation of Utilization of Regional Property that is lent, leased or

used technically operational is carried out by TP2B. Supervision of the implementation of

utilization of regional property is carried out by functional supervision apparatus in accordance

with statutory provisions. The large number of assets and the weak recording and documentation

of asset utilization in the past make asset utilization in DKI Jakarta Province must be continuously

inventoried and monitored.

The valuation of regional property is carried out in the context of preparing the regional

government balance sheet, utilization, or alienation. Asset valuation in the DKI Jakarta Provincial

Government has referred to Government Accounting Standards (SAP), namely using acquisition

value or other fair value determined by the local government. In addition to using the acquisition

value, regional assets are recorded using an assessment based on Governor Regulation Number

132 of 2008 concerning Procedures for Valuation and Determination of the Value of Goods and

can be carried out by appraisal experts if it is deemed that under certain conditions it is necessary

to reassess the value of an asset. All asset valuations aim to make the value of fixed assets

presented in the financial statements reflect the acquisition value or fair value.

The DKI Jakarta Provincial Government has conducted an Asset Census (BMD)

simultaneously in 2008 and 2013. The background of the need to conduct a BMD Census in 2008

was due to the BPK audit opinion in previous years, namely a disclaimer opinion on the fairness

of the presentation of financial statements. One of BPK's notes is the asset problem, namely the

value of fixed assets presented in the financial statements of the DKI Jakarta Provincial

Government is doubtful. The 2008 Asset Census conducted a physical inventory and recording of

assets controlled and managed by all SKPD / UKPD / Service Implementation Unit with technical

guidelines for implementation based on the Decree of the Head of the DKI Jakarta Provincial

Equipment Bureau Number 4248 / -077.21 dated August 5, 2008. The value of assets that were

doubted by auditors at that time was the value of Land and Building assets. The value of these two

assets still did not reflect the fair value at that time. Therefore, as a guide to the valuation during

the census for fixed assets that did not yet have a value or were in doubt because their value was

much smaller than the market value at that time, the Governor of DKI Jakarta Province issued

Governor Regulation Number 132 of 2008 concerning Procedures for Valuation and

Determination of the Value of Goods. Furthermore, with the Asset Census

As a result of the 2008 Asset Census, the recording and value of fixed assets presented can

be more orderly than before. However, as stated in the Permendagri regarding the management of

regional property that each Goods Manager / Goods User conducts an inventory of regional

property at least once every 5 years, so in 2013 an Asset Census was carried out again to

accurately record asset data. BPK assessed the results of the 2013 census through an audit of the

financial statements and provided notes on the implementation of the census and its results. Based

on BPK's notes and findings, since fiscal year 2014 until now the DKI Provincial Government is

still in the process of inventorying assets for several SKPDs which are carried out in stages. The

size of the organization and the number of assets owned by the DKI Jakarta Provincial

Government make the inventory must be carried out in stages, so that the inventory results become

more accurate.

Asset security consists of administrative, physical and legal security. Administrative

safeguards which are the authority of Goods Users/Proxy Goods Users have been carried out on

assets under their control, but physical and legal safeguards are mostly the authority of BPAD as

the Provincial level coordinating work unit that handles assets. Administrative safeguards are

carried out by recording/bookkeeping and reporting on assets controlled/managed by Goods Users

and/or Proxy Goods Users. For administrative security that still has to be refined for each asset is

the labeling of each item purchased. Physical security of assets, especially land and buildings in

the form of fencing, installation of land ownership signs and guarding of all land and buildings

controlled by the DKI Jakarta Provincial Government is still being carried out until now. Legal

security in the form of certifying or making ownership legality of all land and buildings controlled

by the DKI Jakarta Provincial Government is the authority of BPAD in collaboration with the DKI

Jakarta Provincial Legal Bureau. Likewise, the storage of land, building and motor vehicle

ownership documents is carried out by BPAD. Not all Goods Users/Proxy Goods Users have

copies or information on land, building and motor vehicle ownership documents. Copies and

information are needed for recording purposes in KIB SKPD/UKPD/UPB. All ownership

documents of land, buildings and motorized vehicles are stored and archived by BPAD cq. UPT

Document Storage. Often the DKI Provincial Government experiences problems with the

community and auditors due to weak physical security and legality of asset ownership.

Asset maintenance activities are carried out to maintain the condition and repair so that

assets are always in good condition and feasible and ready to be used efficiently and successfully.

Maintenance should be guided by a list of pre-planned item maintenance needs. After the

maintenance is realized, the Power of Goods User will make a List of Goods Maintenance Results

and then the Goods User will research and make a Goods Maintenance List for fixed assets under

the scope of their main duties and functions for one fiscal year and submit it to the Goods

Manager. The DKI Jakarta Provincial Government has not yet made a separate Goods

Maintenance List, only adding to the value of assets that are under the scope of its functions

maintained if the value and nature of maintenance meet the capitalization requirements. Currently,

if there are maintenance activities on fixed assets that are the authority of the Goods User

Authority, the recording carried out is only limited to the ledger or register book of the Assistant

Goods Manager, not yet carried out in a uniform format for all work units. Likewise, Goods Users

have not made a Report on the Results of Research on Maintenance of Goods. Until now, goods

managers and assistant goods managers have only made maintenance / maintenance cards for

assets in the form of motorized vehicles. For other types of assets, maintenance recording is

carried out in the goods register book.

Asset alienation can be carried out on assets that are not needed for the implementation of

regional government duties. The forms of alienation that mostly occur in the DKI Jakarta

Provincial Government are in the form of sales, grants and local government equity participation.

For assets transferred through the mechanism of sales and equity participation of local

governments have been supported by adequate documents, but the transfer in the form of grants is

not entirely supported by the Asset Grant Handover Minutes document. BPAD is currently

continuously inventorying assets belonging to the DKI Jakarta Provincial Government that have

been granted to third parties but are still recorded in the Provincial Government's asset books.

Destruction of assets or regional property that falls within the scope of their main duties

and functions should be carried out by the Goods Manager or Goods User after obtaining approval

from the Governor, after previously the Goods User submits a request for destruction of goods to

the Governor. The Governor's approval of the application for the destruction of regional property

is stated in the approval letter for the destruction of regional property. The implementation of

further destruction is outlined in the Minutes of Destruction and is carried out no later than one

month from the date the approval letter for destruction is issued. The current condition for the

destruction of assets in the DKI Jakarta Provincial Government is that the Goods User has made a

request for the destruction of goods to the Governor through the Goods Manager (Regional

Secretary), but the authority to carry out the destruction of goods is not by the Goods User or

SKPD, but in BPAD. BPAD carries out the authority of the Goods Manager and Goods Users. For

the issuance of a letter of approval for destruction from the Governor, it has been implemented,

but the time period for issuing a letter of approval with a request so far still does not have a certain

time limit. This condition causes a lot of accumulation at the SKPD location of assets with

severely damaged conditions and in the BPAD heavy damaged asset storage warehouse.

Asset write-offs in the DKI Jakarta Provincial Government have generally followed the

guidelines for the management of regional property, and the Provincial Government has even

made innovations by creating an e-write-off system for filing asset write-offs. However, until now,

the e-delete system can only serve deletion submissions for building asset classes only. The write-

off of assets of classes and types other than buildings is still carried out manually, namely the

Goods User / Power of Goods User submits a write-off of assets that are their responsibility

because they are lost, damaged assets due to age or natural disasters, or assets that technically have

a useful life of more than 15 years while the physical assets are no longer found at the SKPD/

UKPD location. For asset write-off activities, the Governor has delegated some of his authority to

the Regional Secretary and Head of BPAD to process application letters, issue write-off letters for

certain types of assets and carry out the asset write-off process itself. For assets in the form of

land, buildings and motor vehicles, the authority to issue write-off letters is still in the hands of the

Governor. BPAD through the Asset Sub Agency in the city/district area will process the write-off

of inventory assets that have been submitted previously. The deletion process is in accordance

with the instruction of the Head of DKI Jakarta Province BPKAD No. 2 of 2016 concerning the

Implementation of the Deletion of Inventory Goods in Regional Work Units (SKPD) / Regional

Work Units (UKPD). For SKPD/UKPD that has submitted a request for a deletion proposal, the

deletion proposal data is immediately scrutinized with the data on the Goods Inventory Card

(KIB). If the submission documents are complete, BPAD will submit a letter to the Directorate

General of State Assets (DJKN) of the DKI Jakarta Regional Office and the Public Appraisal

Services Office (KJPP) to conduct an assessment of the inventory items to be written off. The

Head of BPAD of DKI Jakarta Province makes a Memorandum of Service signed by the Regional

Secretary of DKI Jakarta Province as the Regional Goods Manager addressed to the Governor of

DKI Jakarta Province to request approval for the sale and write-off of Regional Property.

Furthermore, based on the disposition of the Governor, BPAD as the assistant regional goods

manager will make a sales approval letter. Based on the sales approval letter, BPAD makes a

request for an auction letter to the State Wealth and Auction Service Office (KPKNL) of the

Ministry of Finance of the Republic of Indonesia to conduct a sale / transfer of hands by means of

a Public Auction. Furthermore, the implementation of the auction is carried out by the State

Wealth and Auction Service Office (KPKNL) then the minutes of the auction are issued and

payment receipts are made for goods that have been sold. After the minutes of the auction and

payment receipts are completed, the write-off decree can be issued and signed by the Regional

Secretary of DKI Jakarta Province. The length of the deletion submission process until the

issuance of the Deletion Decree has become a complaint from Goods Users / Proxy Goods Users.

The condition of goods that are severely damaged but still physically exist, given that the physical

provisions of the goods cannot be destroyed if the Deletion Decree has not been issued, while

SKPD/ UKPD does not have a place to store severely damaged assets. Likewise, if there are still

assets that are still recorded in the KIB, but the physical goods are no longer found because of

assets with the acquisition year 1960-1990s, the Goods User / Power of Goods User can submit an

asset write-off. This condition causes problems in reporting and when examined by auditors,

because the Goods User / Power of Goods User still lists assets in the SKP Financial Report while

the physical assets are no longer controlled or managed by the Goods User / Power of Goods User.

Goods users and / or the Power of Goods Users have periodically made a letter proposing the

elimination of assets that can no longer be used by SKPD / UKPD.

However, the process of researching applications up to the issuance of approval for

deletion still takes a long time. Goods users through goods administrators and assistant goods

administrators have so far made reports on the deletion of goods but did not make changes to the

of 2016. Recording of changes in the list of goods due to deletion is only done by removing the

code of goods that have been written off from the existing Goods Inventory Card (KIB). At the

time of preparing the Semesterly Financial Report and the SKPD Annual Report, assets or

regional property that have been written off will be included as mutations less assets for the

current year.

In the context of asset administration, the DKI Jakarta Provincial Government continues to

make efforts to organize assets. Asset structuring for the last 2 years has been emphasized on the

basis of Governor Instruction Number 187 of 2015 concerning Acceleration of Improvement of

Accountability in Regional Property Management which regulates, among others, to all Heads of

SKPD / UKPD and all Goods User Units to: 1) prepare an action plan for the implementation of

BMD inventory; 2) prepare all data related to the implementation of BMD inventory;

3) carry out BMD inventory; 4) carry out BMD enumeration; 5) coordinate data recording, print

out data on BMD inventory results;

6) applying barcodes to BMD; 7) compiling and reporting BMD inventory results; 8) making

corrections to asset additions and asset reductions in the Balance Sheet. In this asset arrangement,

BPKAD (now BPAD) was appointed as the coordinator of asset arrangement within the DKI

Jakarta Provincial Government. In addition, the DKI Jakarta Provincial Communication,

Informatics and Public Relations Office (now the Communication, Informatics and Staticka

Office) was appointed to prepare and develop the Asset Information System (SIA), upload BMD

data into the SIA together with SKPD/ UKPD and UPB and maintain the SIA. Fixed asset

administration is carried out with an inventory and enumeration process in all SKPD / UPD and

UPB, the results of inventory and enumeration that have been examined for accuracy and validity

will be recorded in the SIA. Asset recording is carried out according to asset classes, namely KIB

A (Land), KIB B (Equipment and Machinery), KIB C (Building), KIB D (Roads, irrigation and

Networks), KIB E (Other Fixed Assets), KIB F (Construction in Progress). The format of the asset

recording document that has been done so far follows the reference and is guided by the

Permendagri format. KIB A to KIB F made by SKPD/ UKPD/ UPB then becomes one of the

materials for the preparation of SKPD/UKPD Balance Sheet. The asset administration process that

has been carried out so far produces outputs in the form of KIB, Room Inventory Cards,

Combined Inventory Books, Asset Mutation Reports and Asset Balance Sheets as of June 30 and

as of December 31. The asset recording documents will be used as material for preparing SKPD/

UKPD financial reports after reconciliation between the asset section and the SKPD accounting

section to match the initial data of assets, asset mutations and the last position of asset values as of

the date of the financial statements. Reports from UKPD and UPB will be compiled into SKPD

Asset Reports, and SKPD reports will be compiled as material for preparing the DKI Jakarta

Provincial Government Balance Sheet. Before the report

When local government finances are prepared, a reconciliation process is carried out between

SKPD, BPAD and BPKD to match asset data that will be presented in the Financial Statements.

Recording and reporting of assets in DKI Jakarta Province has used the accrual basis, although it

has not been fully applied to fixed assets owned by the DKI Jakarta Provincial Government.

The e-asset system used in the DKI Jakarta Provincial Government is called the Asset

Information System (AIS). SIA is a new system that has been developed and implemented for two

years. Before using the SIA, recording was carried out with SIMDA BMD BPKP and also

manually using the excell system. The use of application systems that changed throughout 2010-

2016 had an impact on the slow administration of assets and the process of preparing financial

reports. The current SIA is only limited to recording assets into KIB, KIR, Inventory Books and

the like, has not integrated the entire process of managing assets or regional property, and has not

been integrated with the accounting system. A reliable asset application system should be able to

be used easily by users (operators or Goods Handlers) or friendly users, integrate the entire asset

management system, be consistent, integrated with financial and accounting systems and can be

used by leaders as a decision-making tool. This is also the case with the application system for

asset ownership documents, especially land, buildings and motorized vehicles. The ownership

document system should be built separately from the asset system due to the confidentiality of

asset documents. Only the identity information of asset ownership documents is integrated with

the AIS, such as certificate numbers, land and building areas and motor vehicle numbers and four-

wheeled motor vehicle frame numbers. The development and improvement of the SIA is carried

out continuously by BPAD and the Office of Communication Information and Statistics so that the

asset application system and asset ownership documents are able to present accurate data, reliable

by users, including by the Governor as material for making the right decisions.

Planning Stage

The planning stage cannot be separated from the budgeting process, so that for the

managerial function of planning in regional fixed asset management, its implementation in a local

government is the planning and budgeting stage. The planning stage is the stage for formulating

asset management activity programs from the smallest unit level in the DKI Jakarta Provincial

Government to the Provincial level (Bappeda), while the budgeting stage is the stage of

formulating the amount of funds needed to carry out the activity program that has been formulated

in the planning process. Planning and budgeting run simultaneously to summarize the overall

planning process time before it is ratified and stipulated as the Regional Development Plan Budget

(APBD). DKI Jakarta Province has a regional regulation that regulates the budgeting planning

process in general, namely Regional Regulation Number 14 of 2011 concerning the Integrated

Development Planning and Budgeting System. Budgeting planning for regional asset management

activity programs is part of the budgeting planning process local government. Proposals for asset

procurement to support local government services in the planning process take place in a bottom-

up manner. The procurement proposal starts at the level of the Budget User/Goods Authority,

which is previously a compilation of musrenbang or rembuk results from the unit below. After

that, the discussion of the proposed activity program is carried out at the Budget / Goods User

level up to the Provincial level (combined SKPD). DKI Province currently uses an e-budgeting

software system to carry out the planning and budgeting process. The flow of asset management

procedures starts from the planning stage, which is included in the preparation of the RAPBD. The

initial stage of this stage is from the rembuk at the Rukun Warga level in January. This preparation

involved 2,727 RWs. All residents' aspirations, especially asset procurement in supporting

community services, are included in an e-Musrenbang system. The results of e-Musrenbang were

then discussed in the kelurahan deliberation forum. In this phase, citizen proposals in e-

Musrenbang are forwarded to the Regional Work Unit (SKPD). Meanwhile, the kelurahan work

plan is included in e-budgeting. Development plan deliberations are carried out in stages from the

kelurahan, kecamatan, to the city and then provincial levels. The political process in Musrenbang

only occurs at the city level. This is because DPRD members from the city's electoral districts are

involved in accordance with DKI Jakarta Regional Regulation 14/2011 on the Integrated

Development Planning and Planning System. Afterward, the budget plan passes through the

provincial level as material for the preparation of the Regional Development Work Plan (RKPD).

At this stage, DPRD members, officials from central ministries or state institutions, become

resource persons for public consultation tests. Furthermore, the RKPD is prepared by taking into

account the vision and mission of the governor. The results of the discussion are included in the

formulation of the RKPD which is then stipulated by the governor. The governor's regulation on

the RKPD is set at the end of May. Furthermore, the DKI Jakarta SKPD began preparing KUA-

PPAS with reference to the RKPD. The process of preparing KUA-PPAS lasts until mid-June,

after which the DKI Jakarta Provincial Government submits KUA-PPAS to the DKI Jakarta

DPRD.

The e-budgeting system is a system for preparing budgeting plans for activity programs

electronically into a software system and stored online for transparency purposes. Budgeting

planning for regional asset management is part of the budgeting planning stage of DKI Jakarta

Provincial Government management, especially regional financial management. The

implementation of budget planning with this online computerized system is in accordance with the

spirit of Government Regulation Number 58 of 2005 concerning Regional Financial Management

which states that regional finances must be managed in an orderly manner, obedient to laws and

regulations, effective, economical and efficient, transparent and responsible with due regard to

justice, propriety and benefits for the community. Transparency is defined as the principle of

openness that allows the public to know and gain access to the widest possible information about

regional finances, as stipulated in the Minister of Home Affairs Regulation Number 13 of 2006.

Some of the advantages of the e-budgeting system are: a) reduce opportunities or prevent

corruption; b) implement a public transparency system as part of the characteristics of good

governance; c) efficiency financial data collection as well as monitoring the evaluation of the

proposed activity program. The e-budgeting system in the DKI Jakarta Provincial Government is

covered by Governor Regulation Number 145 of 2013 signed by the then Governor of DKI Jakarta

Province, Joko Widodo. However, although the e-budgeting system has been implemented since

the beginning of 2014, this system has not optimally shown its success because there are still

findings of external auditors (BPK, KPK) related to corruption in asset procurement through

loopholes in the planning stage. The most dominant case in the planning stage is the discovery of

"stealth budgets" for asset procurement/purchase. For example, the corruption case of

Uninterruptable Power Supply (UPS) procurement for SMAN/ SMKN in Jakarta. Supposedly if

there is control in all parties involved in the planning of budgeting for asset purchases, supported

by an e-budgeting system that has been supported by the e-musrenbang, e-component and e-

catalog systems, then corruption in asset management from the planning stage can be prevented.

One of the objectives of the DKI Jakarta Provincial Government in implementing the e-budgeting

system in planning is to prevent corruption and create clean governance. Likewise, in asset

management, the DKI Jakarta Provincial Government has generally carried out planning starting

from the proposed needs of goods. The planning of goods needs proposed by Goods Users/Proxy

Goods Users refers to the SKPD Work Plan and is guided by go o d s standards, needs standards,

and / or price standards. These three standards have been made systematically with the existence

of e-catalog, e-components in the process of inputting the e-budgeting system.

SKPD and UKPD prepare planning for goods needs based on the needs of their respective

work units, by looking at the availability and condition of pre-existing goods, but in the planning

discussion process there are often changes in proposals with realization, especially those related to

the availability of pre-existing BMD. There are changes in budget realization with proposals, so

far the information is still very limited. The combination of bottom up and top down planning

systems allows changes to the proposed asset procurement plan. Factors causing changes should

be communicated with the proposer to encourage a more transparent planning process. The

planning of asset or regional property needs and asset maintenance has also been regulated by

Permendagri Number 19 of 2016, which requires Goods Users / Power of Goods Users to pour the

needs plan into the SKPD Regional Property Needs Plan document (RKBMD SKPD). This needs

plan includes plans for the procurement of new fixed assets, maintenance, utilization, alienation

and deletion. The planning document as mandated by the Permendagri has not yet been

implemented in the DKI Jakarta Provincial Government. BPAD as the coordinating SKPD for

asset management continues to make efforts so that this regional property planning document can

be made and fulfilled by each work unit proposing activities. A reliable planning system can also

act as a reliable control tool, because control has been created at the beginning of the entire

management process.

Controlling Stage

Control over the asset management of DKI Jakarta Province is carried out by BPAD, DKI

Jakarta Provincial Inspectorate, BPKP and external government auditors such as BPK and KPK.

BPAD through the field of Asset Development, Control and Utilization, sub-sector of Asset

Development carries out its main tasks, among others: a) carrying out guidance, guidance and

technical consultation on regional asset management; b) carrying out coaching activities for goods

keepers / treasurers and goods managers; c) carrying out socialization of laws and regulations in

the field of regional assets; d) carrying out the process of determining the official responsible for

managing regional assets, Goods Users, power of Goods Users, administrators, and goods keepers.

Coaching carried out by BPAD is felt to be not optimal due to limited human resources in BPAD,

but continuous efforts are always given to all goods managers / assistant goods managers.

Guidance that is still lacking is especially guidance for Goods Users / Power of Goods Users,

because it should be in the hands of the highest leadership in SKPD / UKPD that asset

management guidance can be more intensively carried out.

DKI Jakarta Provincial Government's asset management control also optimizes the role of

the Inspectorate as the Provincial Government's internal supervisor. DKI Jakarta Provincial

Governor Regulation Number 252 of 2016 concerning the Organization and Work Procedures of

the Inspectorate states that the Inspectorate's functions include supervision of financial

management, staffing and regional goods in regional devices and coordination of follow-up on the

results of examinations / supervision of state financial auditing agencies and by government

internal supervisory apparatus and other supervisory institutions. One of the follow-up results of

the BPK and KPK examinations is the follow-up of findings regarding the management of

regional assets or goods. In carrying out its duties, the Inspectorate requests advice, consultation

and cooperation with BPKP as a work unit of the Government Internal Supervisory Apparatus

(APIP). Recommendations to improve asset management control are also coordinated with BPK

and KPK. Prior to the preparation of financial statements, the Inspectorate also plays a role in

reviewing financial statements, including scrutinizing the reconciliation process of asset data that

will be presented in the SKPD Balance Sheet and the Regional Government Balance Sheet.

The role of SKPD/ UKPD leaders is not yet optimal. Asset management in SKPD/ UKPD/

UPB still receives less attention from work unit leaders because there is still a view that financial

management is more important than asset management. SKPD/ UKPD leaders prioritize attention

to SKPD/ UKPD activity programs that are technical in nature, main tasks and functions and

finance. The support of SKPD/ UKPD/ UPB leaders is very instrumental in improving asset

management improvements at the work unit level. Commitment, attention and support from the

UPB leadership level to the Governor provide a positive impetus for Goods Handlers / Assistant

Goods Handlers and asset operators to optimize the task of managing assets or regional property.

Organizing Stage

The asset management organization in the DKI Jakarta Provincial Government has been

created and determined starting from the Goods Manager (Regional Secretary) to the Goods

Manager / Assistant Goods Manager at the SKPD / UKPD level. Each goods management official

will carry out their respective main duties and functions and be accountable for their main duties

to the Governor of DKI Jakarta Province as the highest authority for goods management. DKI

Jakarta Province is a "special" local g o ve rn m e n t that allows the organizational structure and

governance to be different from other local governments. The existence of departmental tribes in

municipalities/administrative districts distinguishes the organizational structure of the DKI Jakarta

Provincial Government from other local governments. Organizationally, this condition affects the

process of planning, implementation and accountability of financial/asset management. The

number of UPB also affects the asset management process. The source of the asset management

budget for schools, for example, can come from the Provincial Education Office or the

Municipal/District Education Office, while schools often have difficulty in recording the source or

origin of assets because schools only receive assets and use them with limited information. The

two sources of school assets (procurement and maintenance) affect the reconciliation process for

the preparation of the Education Office's financial statements as well as the level of accuracy of

education fixed asset data.

The asset management of the DKI Jakarta Provincial Government is under the

coordination of BPAD which has a vision of realizing the implementation of accountable,

transparent, responsive, and participatory regional asset management in the framework of Towards

New Jakarta. BPAD has the task of carrying out regional asset management. To carry out the task

of asset management, BPAD organizes the following functions: 1) preparation of strategic plans

and work plans and budgets of BPAD, 2) implementation of strategic plans and budget

implementation documents of BPAD, 3) preparation of policy materials, guidelines and technical

standards for asset management and preparation of unit cost of goods, 4) preparation of a list of

Regional Property Needs Plans (RKBMD), 5) implementation of technical consultations related to

unit cost of goods and asset control to SKPD/UKPD, 6) implementation of coordination in the

framework of receiving assets originating from grants/assistance, receiving assets from the

fulfillment of obligations on agreement principles and other additional contributions, 7)

implementation of the process of determining the status of use of assets, 8) fostering and

developing functional asset officers, coordinating and implementing the asset utilization process,

9) controlling the results of asset sales, 10) collecting regional receivables for asset utilization, 11)

coordinating asset security at SKPD/UKPD, 12) se c u r i n g assets located at goods managers,

13) coordinating asset valuation, 14) implementing the process of changing the status of regional

property/controlled goods, 15) coordinating and implementing asset administration,

16) coordinating the preparation of asset reports, data management and information on regional

assets, 17) compiling the recording of assets carried out by SKPD/UKPD, 18) coordinating the

management of assets that are not under the control of the SKPD/UKPD use and / or not recorded

in the balance sheet of certain SKPD / UKPD, 19) procurement, administration, storage,

distribution and elimination of assets that are not submitted to SKPD / UKPD, 20) management of

BPAD personnel, finance and goods, 21) management of BPAD administration and housekeeping,

22) management of archives, data, information and asset documentation and 23) reporting and

accountability for the implementation of BPAD's duties and functions. The DKI Jakarta Provincial

Government has 719 Goods Administrators and Assistant Goods Administrators who have been

determined by a Decree, namely Governor Decree Number 315 of 2017 dated February 21, 2017

and Governor Decree Number 315 of 2017 dated February 21, 2017.

Number 867 of 2017 dated May 2, 2017. The DKI Jakarta Provincial Government, in addition to

the Goods Manager and Assistant Goods Manager at the SKPD / UKPD level, also has a goods

management work unit under the UKPD, namely UPB with one personnel who has the same

duties as the Goods Manager. These personnel have not yet been determined by Governor Decree,

only limited to Mayor Decree or Head of Service Decree. Examples of UPB are public schools and

sub-district youth sports centers. The determination of goods management personnel by

Governor's Decree and Mayor/Head of Service Decree affects the provision of rewards in the form

of performance allowances for goods managers. So far, performance allowances have only been

given to Goods Managers / Assistant Goods Managers who are determined by Governor's Decree.

Information and communication channels for asset management have been established

through the SIA and BPAD as the coordinator and mediator between SKPD managers. The

reconciliation process at the end of each semester and year in the context of preparing financial

statements is also a medium of communication between fellow Goods Handlers / Assistant Goods

Handlers with BPAD and internal supervisors. However, communication information between

SKPDs is still very limited, except when there are problems related to assets and the interests of

asset development/maintenance. Clarity of information for Goods Managers / Assistant Goods

Managers regarding the identity of asset ownership documents, the source of school assets is still

limited. Weak asset administration before 2000 is one of the causes of limited information. In

addition, limited human resources also affect asset management. Limitations in terms of both

quality and quantity of personnel at the SKPD/UKPD/ UPB level and at BPAD have an impact on

asset management.

1.1 Factors Causing Weaknesses in DKI Jakarta Provincial Government's Fixed Asset

Management:

a. Planning

Based on the results of the gap analysis of BMD management, namely in the planning

managerial function, the cause of the gap is the lack of synchronization of the asset needs planning

system with the budget planning system in general and not maximizing the application of the

principle of transparency in the planning and budgeting process for fixed asset procurement and

maintenance. The planning system through the e-budgeting system has been properly

implemented in the DKI Jakarta Provincial Government and has been

reflects most of the principles of good governance, but has not specifically accommodated the

planning of fixed asset management. Synchronization of the planning system should be done by

creating an asset needs planning sub-system in the SIA in accordance with the provisions of

Permendagri Number 19 of 2016, which is in line with the local government planning system and

the financial accounting system. The principle of transparency in planning is also still a factor

causing weakness. Planning has been carried out in a bottom up and top down manner and has

gone through a long discussion process. However, changes in realization and the reasons for not

approving a procurement or maintenance proposal for fixed assets are still not given clearly and

transparently. The smallest goods management work unit such as UPB is more like just a recipient

of assets from the work unit above it as the Budget User / Goods User or the Authorized Budget

User / Authorized Goods User. Monitoring and evaluation guidance that fixed asset planning must

be based on needs, not desires or encouragement to get a large budget portion from each

SKPD/UKPD, must be carried out continuously. The development of an asset needs planning sub-

system that is connected to the e-budgeting system and the financial accounting system is one

solution to overcome weaknesses in the planning stage. A strong and reliable asset requirements

planning system can also be used as a control tool for management in the implementation phase of

plans and budgets.

b. Organizing

The organizing function is still not optimally implemented due to the limited human

resources of asset managers, the large number of UPBs that exist and the dynamics of changing

Regional Heads over the last five to ten years. The human factor as an absolute resource is needed

as the driving force of an organization, including local government. Fixed asset management is a

part that requires reliable human resources from the UPB level to BPAD as the coordinating

SKPD for asset management. The number of human resources for asset management is also an

obstacle in the DKI Jakarta Provincial Government. The large and wide range of control over

assets managed requires adequate human resources, both in terms of quality and quantity. The

problem of asset management human resources is felt at the UPB level such as public elementary

schools (SDN), while the number of SDNs is the largest UPB of all UPBs in the DKI Jakarta

Provincial Government. UPB is the smallest goods management unit in a local government. The

DKI Jakarta Provincial Government has approximately 2500 UPBs, with the largest UPBs being

public schools. Until 2016, the number of public schools in the DKI Jakarta Provincial

Government was 1564 schools. The requirement that a Goods Manager / Assistant Goods

Manager or equivalent to the duties of a goods manager must be a State Civil Servant is an

obstacle in schools. UPB SDNs that do not have an Administration will eventually assign one of

the teachers as an asset manager. A teacher's prioritized task, namely teaching, and the teacher's

educational background are the dominant causes of the weakness of asset management human

resources at the UPB SDN level. Human resources at BPAD as the coordinating SKPD are also

limited. The main tasks and functions, the large number of assets and the wide range of assets

managed by the DKI Jakarta Provincial Government require that the human resources at BPAD are

limited.

BPAD has an adequate number of human resources. Adequacy in terms of quantity and

quality such as the educational background of asset management employees is an obstacle in

managing the assets of the DKI Jakarta Provincial Government. The number of UPB makes the

span of control over asset management longer and requires appropriate and effective steps. The

large number of UPB and Jakarta's status as the capital city make the value of the assets of the

DKI Jakarta Provincial Government very large. The value of fixed assets amounting to 340 trillion

at the end of 2015 requires the Provincial Government to find the right steps to manage its fixed

assets. Table 10 shows the amount of fixed assets after deducting asset depreciation per asset

class.

Assets in the form of land are the largest contributor to the value of assets of all existing

asset values. The price of land according to the Tax Object Selling Value (NJOP) in Jakarta is one

of the highest NJOP regions in Indonesia. In addition, fixed assets in the form of infrastructure

such as roads, irrigation and buildings contribute to the value of large assets. The need for

infrastructure that has been so large owned by the DKI Jakarta Provincial Government should be a

separate thought for the Provincial Government to be more selective in procuring or building new

fixed assets. A dilemma will be faced by the DKI Jakarta Provincial Government. On the one

hand, it is necessary to pay attention to the portion of the budget for physical asset development

compared to the portion of human development as well as to slow down the rate of increase in the

value of fixed assets, while on the other hand the real infrastructure needs of Jakarta as the capital

of the country as well as one of the indicators of the success of regional leadership become two

difficult sides, w hi c h must simultaneously be considered and solved by the DKI Jakarta

Provincial Government. The dynamics of changing governors over the past 10 years have

contributed to asset management. The change of regional head is generally followed by changes in

organizational structure. Examples of organizational changes include SKPDs that are broken down

which are greatly affected in the administration of their assets.

c. Actuacting

The gap in the implementation function is due to weaknesses in legal security over assets,

asset utilization and the absence of a consistent asset information system over the past ten years.

Physical and legal security of assets owned and controlled by the DKI Jakarta Provincial

Government needs to receive more attention from the implementation of management. Labeling of

physical assets, fencing, and installation of name signs on assets owned and controlled by the

Jakarta Provincial Government need more attention from the implementation of management

followed by a picture of the area or boundaries of provincial assets must continue to be carried out

continuously. The search and inventory of assets that should belong to the DKI Jakarta Provincial

Government must continue to be pursued so that the right steps can be taken to control the

ownership of Provincial Government assets. The utilization of DKI Jakarta assets by third parties

is very potential. The need for Jakarta's infrastructure as the capital of the country is a factor in the

desire of third parties to utilize DKI Jakarta's assets. The weakness of administration of DKI

Jakarta assets utilized by third parties is an obstacle for the Provincial Government to monitor its

assets. Types of asset utilization such as leasing, borrowing, BSG, BGS and KSP/KSPI are widely

applied in asset management. Inventory of documents in the past needs to be pursued continuously

by the DKI Jakarta Provincial Government so that these assets remain safe in ownership on behalf

of the DKI Jakarta Provincial Government. Strengthening the legality of assets utilized by third

parties and documentation of asset utilization agreements must continue to be maximized by

BPAD.

The weakness of asset management in the past (before 2000) is one of the obstacles to the

slow handling of asset problems, especially in securing assets in the legality of ownership of DKI

Jakarta Provincial Government assets. Strengthening the legality of asset ownership is one of the

priorities that must be handled immediately by BPAD in collaboration with the DKI Jakarta

Provincial Legal Bureau. Cases of loss of DKI assets so far have been caused by weaknesses in

legalization and documentation of asset ownership. Information systems are also an important

factor in asset management. The SIA used should be able to unify all stages of asset management

and be connected or integrated with local government financial and accounting systems, especially

with the application of the accrual basis in government accounting. The system utilized by the

DKI Jakarta Provincial Government is currently limited to recording assets into KIB only to

produce an asset report as one of the references for preparing the SKPD Balance Sheet and the

Regional Government Balance Sheet. A reliable system is a system that is consistent, easy to ease

the task of asset managers and can be used by management as a decision-making tool. The

information system for asset ownership documents is also absolutely owned by the DKI Jakarta

Provincial Government. The large number of assets and the confidentiality of asset ownership

documents such as land, buildings and motorized vehicles are the drivers that the ownership

document information system needs to be built separately from the SIA. Information on asset

identity only can be connected to the SIA which includes the stages of asset management. Both

information systems (SIA and SIDok) that are strong and consistent will be able to become a

management control tool as well as a control and decision-making tool for the Governor in dealing

with asset problems.

d. Controlling

The control function still has gaps due to the lack of support and real commitment from the

Head of SKPD / UKPD / UPB to asset management within their work unit. Regional leaders

consisting of UPB leaders to the Governor need to build a strong commitment to take asset

management more seriously. Regional leaders are an organizational manager who is responsible

for all operations of the organization, including asset management. Regional fixed asset

management is an integral part of financial management, so there should be no assumption that

financial management is more important and priority than asset management. The assumption that

has arisen so far in SKPD/UKPD/UPB leaders is that finance and technical work of

SKPD/UKPD/UPB should take precedence in its implementation. Asset management should be

able to run simultaneously in local government management. Leadership commitment can have an

impact on giving attention, encouraging leadership motivation for asset management staff. The

same attention for financial and asset managers needs to be instilled for all SKPD/UKP/UPB

leaders, not only limited to when preparing financial reports. The commitment and support of the

leadership is also a control tool for the Goods Manager / Assistant Goods Manager to carry out

asset management tasks.

Gap Analysis Results and Identification of Causal Factors:

Based on the results of the gap analysis and analysis of causal factors, it can be seen that

the implementation stage is a critical point of all stages of fixed asset management. Critical points

in the implementation stage are the sub-stages of asset utilization, asset security, and asset

administration, especially the asset information system as a tool. Human resources are also a

critical point in the asset management of the DKI Jakarta Provincial Government. In addition, the

next critical point that needs attention is in the planning stage. The special planning mechanism

for asset procurement and maintenance is a process that needs strengthening and development in

its implementation without ignoring the overall local government planning and budgeting process.

Critical points need to be known for management for risk assessment in monitoring evaluation and

determining appropriate control activities for improving asset management. The DKI Jakarta

Provincial Government as a government agency must implement the Government Internal Control

System (SPIP) as mandated in PP No. 60 of 2008. SPIP aims to provide adequate assurance for

the achievement of effectiveness and efficiency in achieving the objectives of state governance,

reliability of financial reporting, safeguarding state assets, and compliance with laws and

regulations. The elements of SPIP are: a) control environment; b) risk assessment; c) control

activities; d) information and communication; and e) internal control monitoring. Leaders of

Government Agencies are required to conduct risk assessments. Risk assessment consists of risk

identification risk analysis. In addition, the Head of Government Agencies must organize control

activities in accordance with the size, complexity, and nature of the duties and functions of the

Government Agencies concerned. Control activities consist of: 1) review of the performance of

the Government Agencies concerned; 2) development of human resources; 3) control over the

management of information systems; 4) physical control over assets; 5) determination and review

of performance indicators and measures; 6) separation of functions; 7) authorization of important

transactions and events; 8) accurate and timely recording of transactions and events; 9) restriction

of access to resources and their records; 10) accountability for resources and their records; and 11)

good documentation of the Internal Control System and significant transactions and events. Good

SPIP implementation is closely related to the success of realizing good governance in a

government agency, including the DKI Jakarta Provincial Government. Proper handling of critical

points in asset management determines the accuracy of decisions and policies taken by the

Governor to optimize the management of his fixed assets.

Fixed Asset Management Optimization Strategy in Realizing Good Governance :

The formulation of strategies to optimize fixed asset management in the DKI Jakarta

Provincial Government using the analitycal hierarchy process (AHP) method so that the resulting

priorities will be consistent with theory, logical and transparent. The AHP structure used in this

study consists of 5 (five) levels, with the top level as the focus/goal of the hierarchy, namely

"Fixed Asset Management Optimization Strategy in Realizing Good Governance in the DKI

Jakarta Provincial Government."

The second level in the hierarchy is factors. The factors used are managerial function factors

in the management of regional fixed assets. The four management functions of asset management

in general are 4 major stages of the overall stages of regional fixed asset management.

The third level in the hierarchy is actors. The actors used are actors who have a role in

managing the assets of the DKI Jakarta Provincial Government to control managerial function

factors, namely

The roles of each actor are as follows:

1. DPRD acts as a party involved in the planning process. From the initial survey process prior to

conducting interviews and distributing questionnaires, it was identified that one of the weaknesses

in financial management is during planning and budgeting. The time-consuming discussion

process hampers the implementation of the planning process.

2. The private sector or the community plays a role in maintaining and securing regional assets that

are used as a function of social facilities and public facilities. Likewise, the community

understands best about the needs of the community to launch the services provided by the DKI

Jakarta Provincial Government. Therefore, transparency and accountability are highly emphasized

in order to fulfill assets as a fulfillment of service needs by the community. The private sector also

plays a role in its obligation to the DKI Jakarta Provincial Government to provide assets in the

form of social facilities-public facilities as a consequence of productive land ownership of at least

5000 m2.

3. SKPD/UKPD/UPB is the main actor in the management of assets or regional property. The Head

of SKPD / UKPD as the Goods User / Power of Goods User is the party that plays a role from

proposing asset needs and budgeting, part of the regional asset management organization,

implementing asset management and controlling regional assets. The Goods User/Proxy Goods

User will appoint and propose a Goods Manager/Proxy Goods User.

Assistant goods managers from each work unit. The goods manager / assistant goods

manager who operationally carries out all stages of asset management in SKPD / UKPD / UPB.

Likewise, the role of BPAD as the coordinating SKPD for regional property management plays a

central role in managing the assets of the DKI Jakarta Provincial Government.

4. Regional management or regional leaders are decisive actors in asset management. The leaders or

management of regional asset managers include the Head of UPB, Head of UKPD, Head of

SKPD, Regional Secretary to the highest authority holder of asset management or regional

property, namely the Governor. The responsibilities, duties and authorities possessed by a top

management of a work unit require that management pay high attention and commitment to the

management of assets or regional property which is the scope of authority of its work unit. The

influence of leadership commitment support to the Goods Manager / Assistant Goods Manager is

very large in providing guidance and control of all stages of asset management.

5. The supervisory element is an actor who plays a major role in carrying out control and supervision

of regional asset management. With supervision and control activities by the Inspectorate, BPKP,

BPK and KPK, the implementers of regional asset or property managers become more orderly in

carrying out their respective main duties and functions. Supervision in general is monitoring and

evaluating the implementation of an activity program, including the management of assets or

regional property. The results of supervision become input for improving the quality of asset

management in each SKPD / UKPD / UPB and local government.

The fourth level in the hierarchy is constraints. The constraints used are constraints that are

considered to affect actors in an effort to carry out the stages in managing assets or regional

property, as well as ideal managerial functions, namely the functions of planning, organizing,

implementing and controlling. These constraints are:

1. The constraints of the asset system and asset documentation are an asset administration system

that is consistently used and user-friendly. Asset documentation is an ownership document for

fixed assets owned by the DKI Jakarta Provincial Government.

2. The constraint of limited human resources is the limited quality and quantity of human resources

responsible for carrying out asset management, both at the SKPD/UKPD/UPB level and at BPAD.

3. The constraints of the number of UPB and SOTK changes are the influence of the organizational

form of the DKI Jakarta Provincial Government which is different from other local governments

and the status of the region as the capital of the country makes the dynamics of organizational

change take place very quickly. The number of SKPD / UKPD / UPB in the DKI Provincial

government affects the amount of assets, the distribution of assets and the course of overall asset

management.

4. Commitment and support of leaders, namely support, motivation, encouragement, attention and

guidance of SKPD/ UKPD/ UPB leaders up to The top management of the DKI Jakarta Provincial

Government determines the policy and implementation of regional asset management.

5. Lack of awareness of the private sector or the community, namely high awareness that is expected

to be obtained from the community / private sector regarding asset ownership, security and

maintenance of assets, use and utilization of DKI Jakarta Provincial Government assets. The

existence of a reciprocal relationship between service providers and service recipients is often an

obstacle in efforts to create good governance of local government services.

The last level in the hierarchy is the alternative strategies chosen to optimize fixed asset

management in realizing good governance in the DKI Jakarta Provincial Government. The

alternative strategies chosen are:

a) System and database strengthening

b) HR Strengthening

c) Preparation of BMD SOP

d) Compilation and establishment of regional regulations or governor regulations on the accurate

number of UPBs

e) Inventory and creation of a documentation system

f) Partnerships with the private sector and the community

g) Inventory in stages

h) Making an Integrity Pact or Commitment between the Regional Head and the Head of SKPD /

UKPD / UPB regarding responsibilities and sanctions for managing assets or regional

property.

i) Building synergy between the DKI Jakarta Provincial Government and the supervisory

element. The selection of strategies at the beginning of this research was carried out after

conducting in-depth observations and discussions with the DKI Jakarta Provincial Government to

deal with the asset problems that had been faced. The emergence of alternative strategies up to

nine alternatives is done so that the strategies produced later are expected to be more

detailed in overcoming the problem. The findings and recommendations of improvement

suggestions from the external auditor of the local government are one of the references for steps to

improve asset management. In addition to following up on BPK findings, the DKI Jakarta

Provincial Government also thinks about control activity steps so that management weaknesses

that appear in the current year will not appear in the following year.

Based on the analysis with the AHP method, the priority optimization strategies at each level

can be seen in Figure 7.

CONCLUSIONS:

Based on the results and discussion that have been presented previously, it can be

concluded as follows:

1. The stages of fixed asset management are a reflection of the four managerial functions of

managing regional property, in each of which there is still a gap between the conditions being

run by the DKI Provincial Government and the desired conditions, which are in accordance

with applicable regulations. The priority stages of management improvement are the planning

and implementation stages by continuing to maximize the role of SKPD in the planning stage

process. The main obstacle in asset management, especially planning, is the asset information

system which is still limited to recording assets, has not integrated all stages of management,

including system output in the form of RKBMD and SIA has not been used as a reference for

planning asset procurement or maintenance in the next fiscal year.

2. The causes of gaps in each function or stage are generally caused by the inconsistency of the

asset system and the weak documentation of asset ownership, the dynamics of changing

Regional Heads over the last five to ten years, and the number of SKPD/UKPD/UPB.

3. The priority strategy to be able to optimize fixed asset management in the DKI Jakarta

Provincial Government is to strengthen the asset information system that is able to integrate

all stages in asset management, integrated with the financial accounting system and strengthen

the information system for asset ownership documentation that is separate from the asset

information system in order to strengthen administrative and legal security over assets

controlled.

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