An overview of examination result semester I, 2014 by the Audit Board of Indonesia states that more than forty percent of the potential loss of the country or region is due to problems regarding to their assets. The challenges in managing municipa...
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...et is important for the realization of public sector reform under the New Public Management ethos. Meanwhile, in the same time, local governments in Indonesia still experiencing a number of challenges regarding to the implementation of public assets management. There are three main aspects that obstruct the effective public asset management. They are include traditional perception in managing municipal assets, lack of government control, and the limitation of human resources who have adequate skills to manage public assets. This problems would affect the local governments’ financial statement audit report and hence influencing the audit opinion. It is recommended that the government either in central or local units to learn from other countries which have been successfully applied a number of strategies to support the implementation of public sector asset management.
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