Rethinking Local Government Asset Management in Indonesia: Governance, Planning, and Policy Evaluation

Effective asset management is essential for enhancing operational efficiency and achieving sustainable development within local governments in Indonesia. This study explores key challenges in asset management, focusing on governance, planning, and policy evaluation. Several critical issues are identified: fragmented governance, insufficient transparency and coordination, outdated asset inventories, and misalignment between asset management practices and broader development goals. Policy evaluation mechanisms are also inadequate, failing to measure asset utilisation effectively. These challenges lead to inefficiencies in resource allocation, underutilisation of assets, and missed opportunities for local economic growth. The findings align with Sustainable Development Goals (SDGs), particularly SDG 11 (Sustainable Cities and Communities), which promotes efficient resource use, and SDG 9 (Industry, Innovation, and Infrastructure), which supports enhanced infrastructure management. Addressing these goals enables local governments to align asset management strategies with broader sustainability objectives, fostering equitable growth and long-term development. Through a qualitative literature review, this study analyses data from government reports and prior research to highlight these challenges and propose solutions. An integrated approach—aligning governance frameworks, improving asset management planning, and strengthening policy evaluation—can overcome the identified barriers. By adopting this model, local governments can optimise asset management, leading to improved efficiency, better resource utilisation, and sustainable development. Future research should explore applying this framework across regions in Indonesia to validate its effectiveness.