By: Pranidhana P. Kusdaryanto
Staff at KPKNL Parepare
Success in managing the state assets is a successful in managing the country itself. An efficient management of state assets can provide good public services. Many governments around the world are eager to find the best way to manage their assets, including Indonesia.
Indonesia has more concern in state assets management since the establishment of the Directorate General of State Assets Management (DJKN) in 2006. During that time, Indonesia keeps reforming to give its best management on state assets. Since 2013, DJKN has making the shift from Assets Administrator to the Assets Manager. This new paradigm indicates that we have more efforts to make the assets generate more benefits and income as well. If I may quote Sri Mulyani, “State Assets must not sleep.” So that’s why we make them “sweaty”.
According to Government Act No. 27 of 2014, State Assets are all assets owned by the government purchased or obtained from State Budget or acquired by legitimate acquisition (Article no.1). Managing state assets means sequence stages including planning and budgeting, procurement, utilization, ending with asset disposal. This is basically the same cycle as Japan did.
The Government of Japan’s assets are classified into administrative assets and non-administrative assets. Administrative assets are assets used for administrative purposes such as government official building, public properties/facilities, imperial properties, and forest management properties (for national forest projects) while non-administrative assets are assets other than that.
As the role of assets manager, DJKN has mandated to utilize the state assets optimally. Simply put, our state assets must gain non-tax revenues. For your information, the 2018 State Budget sets the non-tax revenues to IDR 275,4 T. To hit that target, our assets must be “sweating” enough.
To enforce zero idle assets primarily on land, Ministry of Finance established the State Asset Management Agency (LMAN) in 2016. LMAN is doing a special function as land bank to provide land for infrastructure development which is included in National Strategic Projects. As stated in the official website, LMAN has participated in various infrastructure development projects such as 27 toll roads, 1 port, 26 dams, 1 LRT, and 6 railways one of them is connecting Makkassar-Parepare. By fully utilizing assets, it is expected to earn return on assets and more revenue.
Just like Indonesia, Japan will not let their assets “sleep”. They use their national lands mostly for environment conservation. Besides that, Japan also uses national lands in the field of social welfare. Since 2010, Japan’s Ministry of Finance has promoted the use of national lands for childcare and nursing care freely (no charge). By the early 2020s, Japan intends to make further use of national lands by policing new loan agreements (lending land at lower rents) to help the development of nursing care facilities in urban areas.
Japan’s national lands are also used for disaster prevention by constructing joint housing facilities and other buildings as a tsunami evacuation, or disaster drills with local residents, so as to improve the life expectancy when calamity come.
Both Japan and Indonesia have similar kind of assets, such as abundant natural resources and imperial/heritage buildings. We still have a lot to do for our heritage assets to be optimally utilized. That’s why it is good for having some knowledge transfer not only from Australia, Malaysia, New Zealand, and UK, but also we can take some from Japan. This may be one solution to fully understand what the role entails to the DJKN. Moreover, it might accelerate achieving the roadmap. (daily)
1. Mardiasmo, Diaswati (June,2012). State Asset Management Reform in Indonesia: A Wicked Problem
2. Ministry of Finance of Japan (March, 2018). The Japanese Government Asset System and Current Conditions
3. Peraturan Pemerintah Nomor 27 Tahun 2014