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Stagnancy in Indonesia’s Reformed State Asset Management Policies and Practices: A Wicked Problem?

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Proceedings of the 7th World Congress on Engineering Asset Management (WCEAM 2012)

Part of the book series: Lecture Notes in Mechanical Engineering ((LNME))

Abstract

The policies and regulations governing the practice of state asset management have emerged as an urgent question among many countries worldwide for there is heightened awareness of the complex and crucial role that state assets play in public service provision. Indonesia is an example of such country, introducing a ‘big bang’ reform in state asset management laws, policies, regulations, and technical guidelines. Indonesia exemplified its enthusiasm in reforming state asset management policies and practices through the establishment of the Directorate General of State Assets in 2006. The Directorate General of State Assets have stressed the new direction that it is taking state asset management laws and policies through the introduction of Republic of Indonesia Law Number 38 Year 2008, which is an amended regulation overruling Republic of Indonesia Law Number 6 Year 2006 on Central/Regional Government State Asset Management. Law number 38/2008 aims to further exemplify good governance principles and puts forward ‘the highest and best use of assets’ principle in state asset management. The purpose of this study is to explore and analyze specific contributing influences to state asset management practices, answering the question why innovative state asset management policy implementation is stagnant. The methodology of this study is that of qualitative case study approach, utilizing empirical data sample of four Indonesian regional governments. Through a thematic analytical approach, this study provides an in-depth analysis of each influencing factors to state asset management reform. Such analysis suggests the potential of an ‘excuse rhetoric’; whereby the influencing factors identified are a smoke-screen, or are myths that public policy makers and implementers believe in, as a means to explain stagnant implementation of innovative state asset management practice. Thus, this study offers deeper insights into the intricate Web that influences state asset management innovative policies to state asset management policy makers; to be taken into consideration in future policy writing.

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Acknowledgments

This paper was developed within the CRC for Infrastructure and Engineering Asset Management, established, and supported under the Australian Government’s Cooperative Research Centres Programme. The authors gratefully acknowledge the financial support provided by the CRC.

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Authors and Affiliations

  1. Queensland University of Technology, 2 George Street, Brisbane, QLD, 4001, Australia

    Diaswati Mardiasmo, Charles Sampford & Paul Barnes

Authors
  1. Diaswati Mardiasmo
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  2. Charles Sampford
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  3. Paul Barnes
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Corresponding author

Correspondence to Diaswati Mardiasmo .

Editor information

Editors and Affiliations

  1. World Congress on Engineering Asset Management, Seoul, Korea, Republic of (South Korea)

    Woo Bang Lee

  2. World Congress on Engineering Asset Management, Gyeongnam, Korea, Republic of (South Korea)

    Byeongkuen Choi

  3. Queensland University of Technology, Graceville, Queensland, Australia

    Lin Ma

  4. Queensland University of Technology, Sunnybank Hills, Queensland, Australia

    Joseph Mathew

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Mardiasmo, D., Sampford, C., Barnes, P. (2015). Stagnancy in Indonesia’s Reformed State Asset Management Policies and Practices: A Wicked Problem?. In: Lee, W., Choi, B., Ma, L., Mathew, J. (eds) Proceedings of the 7th World Congress on Engineering Asset Management (WCEAM 2012). Lecture Notes in Mechanical Engineering. Springer, Cham. https://doi.org/10.1007/978-3-319-06966-1_40

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  • DOI: https://doi.org/10.1007/978-3-319-06966-1_40

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-02461-5

  • Online ISBN: 978-3-319-06966-1

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