The Importance of System Transition in The Transfer of State Assets Management to Public Institutions: Analysis at The State Islamic University - Public Service Agency in Indonesia


1Slamet, 2Achmad Diny Hidayatullah, 3Imam Bani Mustolik
1Management, Universitas Islam Negeri Maulana Malik Ibrahim, Malang, East Java, Indonesia
2,3Universitas Islam Negeri Maulana Malik Ibrahim, Malang, East Java, Indonesia
DOI : https://doi.org/10.58806/ijirme.2024.v3i5n08

Abstract

State Higher Education Institutions in Indonesia have experienced a paradigm shift in their management, one of which is the State Islamic University. More than half of State Islamic Universities have Public Service Agency status. They focus on teaching, research, and community service as their primary business and must manage assets professionally and with economic value as potential income. This study seeks to uncover and assess asset management and management transformation of UINs with BLU status. This study uses a qualitative research paradigm with a multi-site approach. This research used in-depth interviews conducted naturally with key informants at three state Islamic universities in Indonesia that have had BLU status for more than ten years. These three universities are considered to have experience in managing assets and carrying out transformation. Data analysis approaches are Domain and Content Analysis. The research data is presented in four domains: cash management, tangible asset management, intangible asset management, and endowment fund management. Research data found that UINs with BLU status still manage assets in a normative and conservative manner. This finding is because UIN, which has BLU status, has yet to transform its university management fully. This study shows that there are demands for UIN with BLU status to transform from a government institution into an "agencification" and semi-autonomous system in line with the delegation of management of state assets from the central government.

KEYWORDS:

asset, state higher education, public services agency, transformation, management

References:

1) Amadi-Echendu, J., Willett, R., Brown, K., & Yang, B. (2010). Whawt is engineering asset management? Springer, 3–16.

2) AssetMetrix. (2022). What is Asset Management? AssetMetrix. https://www.asset-metrix.com/en/asset-management-definition/

3) Audet, J., & D’Amboise, G. (2001). The multi-site study: An innovative research methodology. The Qualitative Report, 6(2), 1–18. https://doi.org/10.46743/2160-3715/2001.2001

4) Azhari, Z. F. (2018). Determinants of cash holding: an empirical study at public universities in Indonesia. Universitas Islam Indonesia. https://dspace.uii.ac.id/handle/123456789/5529

5) Barrone, P., Cruz, C., & Gomez-Mejia, L. R. (2014). Family-controlled firms and stakeholder management: a socioemotional wealth preservation perspective. In L. Melin, M. Mattias Nordqvist, & P. Sharma (Eds.), The SAGE Handbook of Family Business (pp. 179–195). https://doi.org/http://dx.doi.org/10.4135/9781446247556.n10

6) Brown, K. C., Garlappi, L., & Tiu, C. (2010). Asset allocation and portfolio performance: Evidence from university endowment funds. Journal of Financial Markets, 13(2), 268–294. https://doi.org/10.1016/j.finmar.2009.12.001

7) Cangoz, M. C., & Secunho, L. (2021). Cash management: how do countries perform sound practices? Revista Nacional de Administración, 12(1). https://doi.org/http://orcid.org/0000-0002-2142-668X

8) Chareonsuk, C., & Chansa-ngavej, C. (2010). Intangible asset management framework: An empirical evidence. Industrial Management and Data Systems, 110(7), 1094–1112. https://doi.org/10.1108/02635571011069121

9) Cingolani, L., & Fazekas, M. (2020). The role of agencification in achieving value-for-money in public spending. Governance, 33(3), 545–563. https://doi.org/10.1111/gove.12452

10) Dachyar, M., & Perkasa, M. I. (2018). Asset management improvement design in state university. 2018 International Conference on Information Management and Processing, ICIMP 2018, 2018-Janua, 21–25. https://doi.org/10.1109/ICIMP1.2018.8325835

11) Downe, B., & Rn, W. (1992). Content analysis: Method , applications , and issues. Health Care for Women International, 13(3), 313–321. https://doi.org/https://doi.org/10.1080/07399339209516006

12) Egeberg, M., & Trondal, J. (2010). Does agency site matter? In Reproduction (No. 3; Issue 3). https://www.sv.uio.no/arena/english/research/publications/arena-working-papers/2001-2010/2010/WP_03_10_online.pdf

13) Finance Ministry. (2020). Finance Minister Regulation of the Indonesia Republic Number 129/Pmk.05/2020 about Guide of Public Services Agency Manajemen.

14) Fitzgerald, R. (2020). Endowment provides increased funding for U-M operations. University of Michigan. https://record.umich.edu/articles/endowment-provides-increased-funding-for-u-m-operations/

15) Gajduschek, G. (2003). Bureaucracy: Is it efficient? Is it not? Is that the question? Uncertainty reduction - An ignored element of bureaucratic rationality. Administration and Society, 34(6), 700–723. https://doi.org/10.1177/0095399702239171

16) Ganti, A. (2020). Wealt Management. Investopedia. https://www.investopedia.com/terms/w/wealthmanagement.asp#:~:text=Key Takeaways-,Wealth management is an investment advisory service that combines other,holistically for one set fee.

17) Hamdan, H., Anifowose, M., & Annuar, H. A. (2019). Islamic development management. Islamic Development Management, 3–17. https://doi.org/10.1007/978-981-13-7584-2

18) Harris, R. L. (2009). Life insurance and wealth management: A perfect combination for the Ultra-Affluent. The Journal of Wealth Management, 11(4), 114–118. https://doi.org/https://doi.org/10.3905/jwm.2009.11.4.114

19) Harvard University. (2019). Financial Report, Fiscal Year 2020. https://finance.harvard.edu/files/fad/files/fy20_harvard_financial_report.pdf

20) Harvard University. (2021). Financial report (fiscal rear 2021). In Harvard University. https://doi.org/10.1002/j.1556-6978.1971.tb01488.x

21) Hasiara, L. O. (2018). Multi-Case and Multi-Site Research (D. Purnama (ed.)). CV IRDH. http://karyailmiah.polnes.ac.id/images/Download-pdf/buku laode Hasiara upload 2020/8.penelitian multi kasus dan multi situs upload.pdf

22) Ibnu. (2021). Understanding Cash According to Experts, Types, and Characteristics. Accurate.Id. https://accurate.id/akuntansi/pengertian-kas/

23) iCrowdNewswire. (2021). Types of Wealth out there and how Wealth is Created. ICrowdNewswire. https://icrowdnewswire.com/2021/01/15/types-of-wealth-out-there-and-how-wealth-is-created/

24) Indrajit, R. E., & Djokopranoto, R. (2011). Wealth Management. Andi Offset.

25) ITB. (2015). Trustees Board Regulation of the Institut Teknologi Bandung Number 002/P/I1-MWA/2015 about Wealth Management of the Institut Teknologi Bandung. https://multisite.itb.ac.id/mwa/wp-content/uploads/sites/40/2014/10/PP-MWA-02-2015-Pengelolaan-Kekayaan-ITB.pdf

26) Jenkins, E. K., Slemon, A., Haines-Saah, R. J., & Oliffe, J. (2018). A Guide to multisite qualitative analysis. Qualitative Health Research, 28(12), 1969–1977. https://doi.org/10.1177/1049732318786703

27) Kivisto, J. (2008). An assessment of agency theory as a framework for the government-university relationship. In Journal of Higher Education Policy and Management (Vol. 30, Issue 4). https://doi.org/10.1080/13600800802383018

28) Komonen, K., Kortelainen, H., & Räikkönen, M. (2012). Corporate asset management for industrial companies: An integrated business-driven approach. In T. Vander Lei, P. Herder, & W. Ype (Eds.), Asset Management—The State of the Art in Europe from a Life Cycle Perspective (Vol. 9789400727, pp. 47–63). Springer Science. https://doi.org/10.1007/978-94-007-2724-3

29) Kowarski, I. (2020, September 22). 10 universities with the biggest endowments. USNews. https://www.usnews.com/education/best-colleges/the-short-list-college/articles/10-universities-with-the-biggest-endowments#:~:text=Harvard University in Massachusetts once,University%2C which tied for No

30) Lev, B. (2008). A rejoinder to Douglas Skinner’s “Accounting for intangibles - A critical review of policy recommendations.” Accounting and Business Research, 38(3), 209–213. https://doi.org/10.1080/00014788.2008.9663334

31) Liamputtong, P. (2013). Qualitative Research Methods. Oxford University Press.

32) Lin, A. J., Chang, H. Y., Huang, S. W., & Tzeng, G. H. (2021a). Criteria affecting Taiwan wealth management banks in serving high-net-worth individuals during COVID-19: a DEMATEL approach. Journal of Financial Services Marketing, 26(4), 274–294. https://doi.org/10.1057/s41264-021-00103-2

33) Lin, A. J., Chang, H. Y., Huang, S. W., & Tzeng, G. H. (2021b). Improving Service Quality of Wealth Management Bank for High-Net-Worth Customers During COVID-19: A Fuzzy-DEMATEL Approach. International Journal of Fuzzy Systems, 23(8), 2449–2466. https://doi.org/10.1007/s40815-021-01130-w

34) Lisboa, L. B., Garcia, V. C., Lucrédio, D., de Almeida, E. S., de Lemos Meira, S. R., & de Mattos Fortes, R. P. (2010). A systematic review of domain analysis tools. Information and Software Technology, 52(1), 1–13. https://doi.org/10.1016/j.infsof.2009.05.001

35) Lye, J. J. (2011). Scholarly commons the practice of private wealth management in Singapore. In The Practice of Private Wealth Management in Singapore. https://repository.upenn.edu/cgi/viewcontent.cgi?article=1085&context=wharton_research_scholars

36) Mawarni, R., & Suprihanto, J. (2018). Idle Cash Management Accountability Analysis (Study in Sleman Regency and Yogyakarta City) [Universitas Gadjah Mada Yogyakarta]. http://etd.repository.ugm.ac.id/penelitian/detail/167011

37) Moore, C. F. (1986). Understanding Entrepreneurial Behavior: A Definition and Model. Academy of Management Proceedings, 1986(1), 66–70. https://doi.org/10.5465/ambpp.1986.4978712

38) Mulvey, J. M., & Holen, M. (2016). The Evolution of Asset Classes: Lessons from University Endowments. Journal of Investment Consulting, 17(2), 48–58. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2880001

39) Munawir. (2014). Analysis of Financial Statements. Liberty.

40) Murphy, C. B. (2021). How Do Tangible and Intangible Assets Differ? Investopedia. https://www.investopedia.com/ask/answers/012815/what-difference-between-tangible-and-intangible-assets.asp

41) Nunes-Silva, L., Malacarne, A., Macedo, R. F., & De-Bortoli, R. (2019). Generation of intangible assets in higher education institutions. Scientometrics, 121(2), 957–975. https://doi.org/10.1007/s11192-019-03226-5

42) Ouyang, A. Y., & Wang, J. (2022). Shadow banking, macroprudential policy, and bank stability: Evidence from China’s wealth management product market. Journal of Asian Economics, 78(February), 101424. https://doi.org/https://doi.org/10.1016/j.asieco.2021.101424

43) Pekei, B., Hadiwidjojo, D., & Djumahir, S. (2014). The Effectiveness of Local Asset Management ( A Study on The Government of Jayapura ). International Journal of Business and Management Invention, 3(3), 16–26.

44) Perry, E., & Weltewitz, F. (2015, June). Wealth management products in China. Bulletin Enquiries, 59–68. https://www.rba.gov.au/publications/bulletin/2015/jun/pdf/bu-0615.pdf#page=61

45) Rahardjo, M. (2010). Qualitative research data analysis (an empirical experience). Gemma. https://www.uin-malang.ac.id/r/100601/analisis-data-penelitian-kualitatif-sebuah-pengalaman-empirik.html#:~:text=Analisis Domain (Domain analysis).,ada di dalam data tersebut

46) Revellino, S., & Mouritsen, J. (2009). The multiplicity of controls and the making of innovation. European Accounting Review, 18(2), 341–369. https://doi.org/10.1080/09638180802681529

47) Ris, E. W. (2017). The education of Andrew Carnegie: Strategic philanthropy in American Higher Education, 1880–1919. Journal of Higher Education, 88(3), 401–429. https://doi.org/10.1080/00221546.2016.1257308

48) Riyanto, A., & Utomo, W. (2012). Implementation of the Agencification of Public Service Bodies (Case Study: Universitas Islam Negeri of Sunan Kalijaga Yogyakarta) [Universitas Gadjah Mada]. http://etd.repository.ugm.ac.id/home/detail_pencarian/57542

49) Robertson, A., Cleaver, E., & Smart, F. (2019). Beyond the Metrics: Identifying, Evidencing and Enhancing the Less Tangible Assets of Higher Education. https://www.enhancementthemes.ac.uk/docs/ethemes/evidence-for-enhancement/beyond-the-metrics-identifying-evidencing-and-enhancing-the-less-tangible-assets-of-higher-education.pdf?sfvrsn=ca37c681_8

50) Rymarzak, M., & Trojanowski, D. (2015). Asset management determinants of Polish universities. Journal of Corporate Real Estate, 17(3), 178–197. https://doi.org/10.1108/JCRE-02-2015-0006

51) Sangadji, M. I., & Suprihanto, J. (2008). Cash Management Analysis as an Effort to Increase Local Revenue through the Use of Idle Cash in North Maluku Province [Universitas Gadjah Mada Yogyakarta]. http://etd.repository.ugm.ac.id/penelitian/detail/37644

52) SBFMA. (2022). Sustainable Business and Fund Management Agency. Institut Teknologi Bandung. https://bpudl.itb.ac.id/about/

53) Sciascia, S., Mazzola, P., & Kellermanns, F. W. (2014). Family management and profitability in private family-owned firms: Introducing generational stage and the socioemotional wealth perspective. Journal of Family Business Strategy, 5(2), 131–137. https://doi.org/10.1016/j.jfbs.2014.03.001

54) Siregar, D. D. (2002). Optimalisasi Pemberdayaan Harta Kekayaan Negara. Gramedia Pustaka Utama.

55) Sugiama, A. G. (2013). Tourism Asset Management. Guardaya Intimarta.

56) Suhanda, E., & Saleh, S. (2012). Idle Cash Optimization Strategy in the Regional Financial Management of Rokan Hulu Regency [Universitas Gadjah Mada Yogyakarta]. http://etd.repository.ugm.ac.id/penelitian/detail/54297

57) Sun, C. C. (2021). An assessment model for wealth management banks based on the fuzzy evaluation method. Mathematics, 9(19), 1–16. https://doi.org/10.3390/math9192442

58) Syafar, F., Husain, H., Ridwansyah, Harun, S., & Sokku, S. (2017). Key data and information quality requirements for asset management in higher education: A case study. Proceedings of the 30th International Business Information Management Association Conference, IBIMA 2017 - Vision 2020: Sustainable Economic Development, Innovation Management, and Global Growth, 2017-Janua, 1670–1677.

59) Tirayoh, V. Z., Latjandu, L. D., Sabijono, H., & Mintardjo, C. M. O. (2021). Public Sector Asset Management in the Government of Indonesia: A Case Study in Minahasa Regency. Jurnal Bina Praja, 13(2), 195–205. https://doi.org/10.21787/jbp.13.2021.195-205

60) UiTM. (2022). Apa itu endowment fund UiTM? Universiti Teknologi Mara. https://endowment.uitm.edu.my/v1/index.php

61) UKM. (2022). RHB-UKM Endowment Fund. Universiti Kebangsaan Malaysia. https://www.ukm.my/gsbukm/rhb-ukm-endowment-fund-2/

62) Verhoest, K. (2017). Agencifcation in Europe. In Edoardo Ongaro & van T. Sandra (Eds.), The Palgrave Handbook of Public Administration and Management in Europe (Issue November 2017, pp. 327–346). Palgrave Macmillan. https://doi.org/doi:10.1057/978-1-137-55269-3_17

63) Verhoest, K. (2018). Agencification in Europe. In E. Ongaro & S. van Thiel (Eds.), he Palgrave Handbook of Public Administration and Management in Europe (pp. 327–346). Department of Political Science, University of Antwerp.

64) Waluyo, B. (2018). Balancing financial autonomy and control in agencification: Issues emerging from the Indonesian higher education. International Journal of Public Sector Management, 31(7), 794–810. https://doi.org/10.1108/IJPSM-10-2017-0272

65) Wang, H. (2022). Exploration on the Organic Integration of Asset Management and Budget Management in Colleges and Universities. International Journal of New Developments in Engineering and Society, 6(1), 51–62. https://doi.org/10.25236/ijndes.2022.060109

66) Wikipedia.org. (2022). Asset management. In Wikipedia, the free encyclopedia. https://en.wikipedia.org/wiki/Asset_management

67) Wu, C. R., Lin, C. T., & Tsai, P. H. (2010). Evaluating business performance of wealth management banks. European Journal of Operational Research, 207(2), 971–979. https://doi.org/10.1016/j.ejor.2010.04.034