Good governance and Indonesian state asset management
According to Hughes (2012,) Governance is about framing rules and organizations with the intention of providing accountability. Within the context of Indonesian state asset management, good governance principles are defined based on the list of good governance principles as listed by the National Development Agency, which include principles such as transparency, accountability, regulatory compliance, professionalism and competency, efficiency and effectiveness, and partnership between public and private sector (Bappenas, 2007).
The implementation of good governance on Indonesian state asset management can be seen from the orderliness of government offices in the reports on state asset that …show more content…
The achievement can be seen from audit opinion given by Supreme Audit Agency. During 2004 to 2008 where the state asset management reform has just started, the Supreme Audit Agency issued a disclaimer of opinion on government financial report. One of the factors that cause a disclaimer of opinion is state asset management which was carried out with lack of governance. However, starting from 2008 to 2014, the Supreme Audit Agency issued qualified opinion with the findings in the field of state asset diminishing from year to …show more content…
Those three challenges may impede the achievement of economy, efficient, and effectiveness in state asset management.
Civil society needs to be involved in take care of state asset. The Government of Indonesia has many assets in the form of land widespread in many places. Especially for the idle land, it is very easily occupied if land supervision is weak. Land that has been occupied by the community become useless for the government because the government can not utilize the land for public purposes. Therefore, there is a need to increase civil society’s level of custodian and ownership of state asset.
In recent years, the utilization of idle assets in the form of cooperation with the private sector is increasing. The cooperation is carried out within the business framework between the government and the private sector. In order for such cooperation to provide optimal results to the state revenue, it has to be supported by an adequate business skill from the asset managers. Lack of business skill causing asset utilization is not optimal which eventually the asset management become inefficient and
According to Hughes (2012,) Governance is about framing rules and organizations with the intention of providing accountability. Within the context of Indonesian state asset management, good governance principles are defined based on the list of good governance principles as listed by the National Development Agency, which include principles such as transparency, accountability, regulatory compliance, professionalism and competency, efficiency and effectiveness, and partnership between public and private sector (Bappenas, 2007).
The implementation of good governance on Indonesian state asset management can be seen from the orderliness of government offices in the reports on state asset that …show more content…
The achievement can be seen from audit opinion given by Supreme Audit Agency. During 2004 to 2008 where the state asset management reform has just started, the Supreme Audit Agency issued a disclaimer of opinion on government financial report. One of the factors that cause a disclaimer of opinion is state asset management which was carried out with lack of governance. However, starting from 2008 to 2014, the Supreme Audit Agency issued qualified opinion with the findings in the field of state asset diminishing from year to …show more content…
Those three challenges may impede the achievement of economy, efficient, and effectiveness in state asset management.
Civil society needs to be involved in take care of state asset. The Government of Indonesia has many assets in the form of land widespread in many places. Especially for the idle land, it is very easily occupied if land supervision is weak. Land that has been occupied by the community become useless for the government because the government can not utilize the land for public purposes. Therefore, there is a need to increase civil society’s level of custodian and ownership of state asset.
In recent years, the utilization of idle assets in the form of cooperation with the private sector is increasing. The cooperation is carried out within the business framework between the government and the private sector. In order for such cooperation to provide optimal results to the state revenue, it has to be supported by an adequate business skill from the asset managers. Lack of business skill causing asset utilization is not optimal which eventually the asset management become inefficient and