APP FOR GOVERNMENT ASSET MANAGEMENT
Abstract : The aim of the study is to identify the opportunities and challenges a local government public asset manager is most likely to deal with when adopting the appropriate Public Asset Management Framework especially in developing countries. In order to achieve its aim, this study employs a Case Study in Indonesia for collecting all data i.e. interviews, document analysis and observations at South Sulawesi Province, Indonesia. The study concludes that there are significant opportunities and challenges that local governments in developing countries, especially Indonesia, might be required to manage if apply public asset management framework appropriately. The opportunities are more effective and efficient local government, accountable and auditable local government organization, increase local government portfolio, reflect up to date information for decision makers in local government, and improve the quality of public services. On the other hand, there are also challenges. Those challenges are local governments has no clear legal and institutional framework to support the asset management application, non-profit principle of public assets, cross jurisdictions and applications in public asset management, the complexity of public organization objectives, and data availability required for managing public property. The study only covers the condition of developing countries where Indonesia as an example, which could not represent exactly the whole local governments’ condition in the world. Further study to develop an asset management system applicable for all local governments in developing countries is urgently needed. Findings from this study will provide useful input for the policy maker, scholars and asset management practitioners to develop an asset management framework for more efficient and effective local governments.
? The concept of local government assets as the essential resources that should be managed judiciously because their correlation with the existence and wellbeing of the community.
? PEFA’s protocol includes assessing elements such as the existence and completion of inventory records for nonfinancial assets, as well as procedures and rules for their transfer or disposal.
? Threats to the sustainability of municipal assets exist even in developed countries, and in developing countries they are substantially higher.
? Such construction is done without proper planning and budgeting of future life cycle costs of existing and new assets, thus setting the stage for future problems.
? There might be other non-asset solutions to soften the problem, adoption and application of a public asset management framework will significantly reduces the impact of the circumstances.
? This study applies non-participant observation, which starts from descriptive observation on how local government in South Sulawesi province manages its assets, then move to specific processes and problems in municipal asset management stages.
? The lack of coordination between the property department and the other department has meant that there has often been an imbalance between demand and supply.
? The correction of just one aspect of the asset management in the process, i.e. applying market value to the property, will have significant impact on governments portfolio.
• Our proposed methodology suggests a reasonably brief yet well-rounded performance evaluation and includes universal elements of good asset management, which makes the methodology applicable to nearly any country.
• In the land proposed to be acquired and the Secretary shall inform the said value to the Land Acquisition Officer concerned.
• If the proposed property is for educational purpose, permission from the Deputy Director of Education shall be obtained.
• Under the Asset Management Plan (AMP) it is proposed that MMS activities include inspection, assessing asset condition against failure/breakdown, prioritising, scheduling, auctioning the work and reporting what was done to develop a maintenance history to improve maintenance and service delivery performance.
? There is no systematic consideration of the efficiency of public assets use or its financial performance in order to recognise the profitability of the assets.
? The data used in the accrual based government financial report enables the assessment of accountability and performance of government entities.
? Those opportunities and challenges have resulted in a requirement to improved public asset management to produce a high level performance across all divisions and sectors within the local government organisations.
? One source of inefficiency is the presence of large portfolios of vacant or underused properties.
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