The application of public asset management in Indonesian local government

Abstract

PurposeThe purpose of this paper is to identify the challenges faced by local government in Indonesia when adopting a public asset management framework.Design/methodology/approachA case study within the South Sulawesi provincial government was used as the approach to achieve the research objective. The case study involved two data collection techniques – interviews and document analysis.FindingsThe result of the study indicates there are significant challenges that the Indonesian local government need to manage when adopting a public asset management framework. Those challenges are: the absence of an institutional and legal framework to support the asset management application; the non‐profit principle of public assets; multiple jurisdictions involved in the public asset management processes; the complexity of local government objectives; the non‐availability of data for managing public property; and limited human resources.Research limitations/implicationsThis research is limited to one case study. It is a preliminary study from larger research that uses multiple case studies. The main research also investigates opportunities for local government by adopting and implementing public asset management.Originality/valueThe paper's findings provide useful input for the policy makers, academics and asset management practitioners in Indonesia to establish a public asset management framework resulting in efficient and effective organizations, as well as an increase of public services quality. This study has a potential application in other developing countries.