Asset Inventory Analysis Based On Permendagri

No. 1 In The Year 2016 In Peresak Village

West Lombok

Herry Irawan
Magister Of Accounting, Faculty Of Economic and Bussines Mataram University, Mataram,
West Nusa Tenggara, Indonesia
Herry.irawan@bps.go.id

Prayitno Basuki
Endar Pituringsih

Mataram University
 Abstract
This study aims to explore the applications of Permendagri No. 1 in the year 2016 on the

management of village assets in Peresak village government, Narmada district, west Lombok

Regency. The method of this research used qualitative approach with case study analysis. The

data used are primary and secondary data. Information was collected through interviews with in-

formants, document tracking and direct observation. The result of the research shows that the

implementations of regulations related to the inventory of village assets has not been suitable,

because of unrecorded asset value, uncoded and unlabeled equipment and machine, no capitali-

zation of rehabilitated village office buildings, no legal ownership of the village office and the

lack of documentation of village assets owned. This research is expected to contribute to the vil-

lage apparatus to manage the assets in accordance with the regulations that have been deter-

mined.

Keywords : Village Asset, Regulation, Inventory

 Asset Inventory Analysis Based On Permendagri 1 Year 2016
In Peresak Village West Lombok

1 Background

The village is as a government which directly contacts with the society becomes the main fo-
cus in government development. This is because most of Indonesia is in rural areas. Based on
Constitution No. 6 in the year 2014 on village, the administration of village government finances
is separated from the district government’s finances.
The village has a strategic position in the system of Indonesian government. Many authorities
given to the village to carry out the role and its function run the important tasks of the govern-
ment. One of them was characterized by the formation of constitution No. 6 in the year 2014
about the village; the village government has an authority to manage the village administration
independently. In the government regulation number 43 in the year 2014 which was then revised
to be government regulation number 47 in the year 2015 about implementing regulation of con-
stitution number 6 in the year 2014 about village was explained that the financial and wealth of
the village become the authority of the village and the head of the village is as a power holder of
the financial management and assets of the village. In addition, according to Kartika et al (2013),
the village asset management is one of the forms of autonomy village. Based on this, the village
has the right and obligations to manage the available resources in accordance with the regula-
tions.
The financial report is very important for an entity. no exception is also for the village gov-
ernment. The financial report can be used as the basic to make decision for the head village as
the highest leadership in the village. In addition, the financial report is also important for the so-
ciety as the stakeholder in the territory of the village. To generate the transparent and accounta-
ble financial report, the village government has to run a good accounting system in the financial
management, no exception in the management of the village fixed asset. In the management is
very important for the village to use the guidance of the village asset management as the refer-
ence to manage the village assets (Kartika et al. 2013). A good accounting system will help the
management to answer the questions such as; “what assets do we have?” (Kieso, 72: 2008). By
applying the accounting system on the management of the village fixed assets, the head village
as the manager can find out the real amount of fixed assets owned and make the right decisions
related to the management. Assets are now owned, governed and operated by an expanded set of
decision-makers (Brown, etc, 2012).
The village is as the government entity, of course, feels that the management of the village
fixed assets becomes very important to do. There should be substantial economies of scale in as-
set management, Malkiel (2013). Meanwhile, according to Brown and Humphrey (2005), asset
management is based on three main pillars: management, engineering and information, which
together form a foundation for efficient and/or sustainable use. For the village government itself,
the management of the village assets refers to the minister of home affairs regulations
(Permendagri) No. 1 in the year 2016 on the management of the village assets.
The wealth of the village called as the village assets is the property owned by the village and
it distinguishes between district and village. The proper management of the village assets is
based on prevailing regulations and having guidance for the management. To improve the man-
agement of the village assets, the government issued the minister of home affairs regulation No.
1 in the year 2016 on the management of village assets where the definition of the management
itself is a series of activities ranging from planning, procurement, use, utilization, security,
maintenance, removal, transfer, administration, coaching, supervision and control.
The published of the latest regulation of Permendagri number 1 in the year 2016 on the man-
agement of the village assets has not significantly affected to the village in managing the village
assets owned. The conditions of human resources owned by the village are lacking, both in terms
of quantity or quality, the socialization of the regulation that has not gone well, and the lack of
organizational commitment from the village apparatus which makes the management of village
assets is still far from expectation.
This research was conducted in Peresak village, Narmada Sub District, West Lombok Regen-
cy. The Peresak village was chosen as the location of the research because it has characteristic
similar to other villages which have the same problems in managing the village assets but has
been audited some time ago. Therefore, the researcher feels that he needs to know and under-
stand what problems occurred, So that the findings that will be obtained by the researcher are
expected to be a material consideration in solving similar problems in other villages.
This research aims to see how the implementation of Permendagri number 1 in the year 2016
about the village assets management related to inventory asset which includes recording, securi-
ty, documentation and reporting result of ownership registration of the assets. This study is ex-
pected to contribute new thinking and provide empirical evidence that regulation which has been
made is able to provide improvement for a better direction if it is run and obeyed by all elements
therein. In addition this research is expected to be beneficial for the village apparatus in reform-
ing the village assets management in the future as well as expected to be considered in making
decision technically and strategically In the process of the village assets management by the
achievement for a reliable and accountable village assets management, according to the mandate
of Permendagri No. 1 in the year 2016.

2 Literature Review

2.1 Village asset

The property of the village or the so-called village fixed assets is an inseparable part of the
village financial management. The village's fixed assets are part of the village's assets which are
accountable in the village financial statements and included in the balance sheets. Further in
Permendagri No. 1 year 2016 explains that village assets are village-owned goods derived from
village original wealth, purchased or obtained on the Village Revenue Expense Budget or other
legitimate rights acquisition. Thus, the village fixed assets need to be managed well as other vil-
lage assets are in the form of current assets (cash, money in banks, accounts receivable and in-
ventory), investments, and other assets.

2.2 Regulation
Regulation is one of the norms or rules of law that must be obeyed. Regulation implies con-
trolling human or community behavior with rules or restrictions (Big Indonesian Dictionary).
Regulatory Theory is a special regulation issued by the government to support the establishment
of a harmonious, balanced relationship, in accordance with the environment, values, norms, cul-
ture of local communities, to realize sustainable economic development in order to improve the
quality of life and the environment (http: //id.wikipedia .org / wiki / theory_regulation).
 The government through the minister of home affairs issues the latest regulation, Permendagri
number 1 of 2016 on the management of village assets where the regulation is a set of guidelines
on asset management of villages that are expected to provide a better change of village asset
management in the future. Of course the series of regulations is expected to be used as a refer-
ence for all the management of village assets in order to optimize public services. The regulation
describes who is acting as the manager and responsible for the management of village assets to
what kind of village asset management process in detail.
Based on the government regulation No. 27 in the year 2014 article 85paragraph 1 mentions
that the users of commodities do the inventory state property/ region at least once in five (5)
years. It is done in order to control the existing assets in the government agencies well. So that
can minimize the arising problems of asset caused by unrecorded assets and the used of the as-
sets that is not accordance with the allocation can be immediately stopped.

2.3 Inventory
One part of the village assets management activities is administration (the inventory of the vil-
lage assets). According to Soemarsono S.R (1994, p15) “Inventory is the recording of the com-
modities owned by the office or company”. According to Chabib Sholeh and Heru Rochamnsjah
(2010: 180) “Inventory is an activity/ action to calculate, manage, regulation, record the data and
report the local property in usage unit”. According to A. Gima Sugiama (2013: 173) “An asset
inventory is a series of activities used for collecting data, recording, reporting of the assets, and
documenting either tangible or intangible assets at any given time. The inventory of assets is
done to obtain the data of all assets owned, controlled by company organization or government
agencies. All assets need to be inventoried either on their own expense (investments), grants, or
another way. “According to minister of home affairs regulation No.1 in the year 2016 article 1,
paragraph 27;” the inventory is an activity for collecting, recording, and reporting the results of
the recording village assets. From some understanding it can be concluded that asset inventory is
a series of activities to perform recording, safeguarding, documentation, and reporting results of
recording the ownership of an asset.
In the book of asset management’s tourism (Sugiama, 2013) asset inventory is at the third
stage after the planning stage needs of assets and acquisitions. There are three main purposes of
inventory assets; 1) create an orderly administration; 2) security assets; 3) control and supervi-
sion of assets.

3 Methodology

This research uses qualitative method with case study approach. Case study is a research in
which the researcher carefully investigates a program, event, group process or individual
(Cresswell, 2015). The data used in this research were primary and secondary data. The primary
data was obtained by interviews and observations done by the researcher while the secondary da-
ta was obtained from the researcher’s study on the documents either in the form of softcopy or
hardcopy.
The informants of this research were all the village apparatus ranging from the head village to
the village staff directly related to the village assets management process, especially the village
assets inventory. Not all informants could be interviewed but all key informants were successful-
ly interviewed through in-depth interviews and confirmed through the available documents.
The data analysis is the process of arranging the sequence of data, organizing in a pattern, cat-
egory and a basic description so that the theme can be found and can be formulated working hy-
pothesis (Moleong, 2007). After the data has been collected, the researcher analyzed the data us-
ing Miles and Huberman (1994) model those are data reduction, data presentation and conclu-
sion.

4 Result And Discussion

4.1 Asset Recording

The activity of recording assets conducted in Peresak village has not been suitable with the
applicable regulation that’s; Permendagri No. 1 in the year 2016. Some problems found by the
researcher are no inclusion value on each asset which is written in the book of village asset in-
ventory. Assessment is a process of measurement activity based on objective and relevant data/
facts by using certain methods / techniques to obtain the value of an asset (Permendagri No. 1 in
the year 2016) the asset officer who is directly captured by the head of public affairs has found
the problem since obtaining the task from the village head. Here’s the informant’s expression:
“ …hmmm gimana ya, sejak awal saya pegang tugas ini memang adanya seperti ini.
Saya ini juga bingung mau mencantumkan nilai dari masing-masing aset sedangkan
saya sendiri tidak tahu dasarnya… hmmmm… apalagi ini tabelnya juga adanya cu-
ma nomor, jenis barang sama jumlahnya saja… sedangkan tabel nilai aset nggak
ada. Kalau saya adakan sendiri malah takutnya salah nanti hehe…. Soalnya ini dari
sebelum saya pegang juga sudah kayak gini pak…”
(“…hmmm how I have to explain, from the beginning I hold this task is indeed like
this. I am also confused to include the value of each asset while I don’t know the
basic… hmmm… also what we have on this table are only number, types of the
commodity, and its amount… the table of asset value also doesn’t exist. If I make it
by myself I am afraid that it will be wrong hehe… because it has been like this be-
fore I hold it sir…”)
From the informant’s expression, the researcher concludes that the asset officer still don’t
have knowledge and procedure in assessing the asset. The confusing thing according to the in-
formant is how the basic of defining the asset value, since to track the prices against equipment,
machinery and other assets that have existed long before assuming the asset officer does not ex-
ist. The information gotten from the previous officers didn’t exist, So that the activity of no value
asset is still ongoing.
In addition to the problems, there are still some problems with the recording of village assets,
that is, there is no codification of items and no labeling of each item. So it is certainly hinder the
asset officer, in this case to conduct supervision and control of assets. Codification is giving code
in each item of the village asset in order to secure and enactive the ownership status (Permendag-
ri No. 1 in the year 2016) in the meaning of the code, the purpose of the codification is to assist
the asset officer in securing the asset and to know the asset ownership status. Besides not codify-
ing, the labeling was also not done. It has an impact to the process of inventory of asset data be-
cause if the assets of the village have been labeled, it will facilitate the asset officer in checking
the location of the existence and condition of the asset. Here’s is the informant’s expression:
“ belum pernah saya kasi kode barang-barangnya pak…. Misalnya kalo ada penga-
daan barang, saya hanya tulis saja di buku inventarisasi aset nama barang dan
jumlahnya.. mmmm dulu katanya pernah sih dikasih kode sama ditempel labelnya gi-
tu, ee tapi pas lomba desa kalo gak salah… tapi itu sudah lama tahun 2007 apa 2008
kalo gak salah sih…”
 (“…I never give the code on each item sir… for instance if there is a procurement of
commodities. I just write it in the inventory book assets of the commodities and the
amount. Mmmm last time I heard that it was given a code and also label … ee on the
village competition if I am not mistaken. But it was a long time in 2007 or 2008 if I
am not mistaken …”)
In addition to these problems, the researcher tried to ask about the rehabilitation of office
buildings. The researcher saw many changes made to physical rural office buildings compared to
the previous conditions. From the information obtained that the office building has been rehabili-
tated with a considerable cost, it can be seen from the roof of the new office building and chang-
ing of some existing room. From that information the researcher tried to ask about the range of
the amount funds and also whether or not the capitalization of the asset value of the village office
building has been rehabilitated with such large fund. Here’s the informant’s information.
“.. iya pak, kantor desa memang pernah direhab beberapa tahun lalu. Dana yang
dipakai lumayan pak, tapi…. Berapa jelasnya saya kurang tahu. Kapitalisasi ? mak-
sudnya pak ?? Ow kalo seperti itu kami kurang paham, hmmmm yang kita tahu per-
tanggungjawaban dana rehabnya saja di SPJ kan tapi kalo nilai aset yang dikapital-
isasi kami gak ngerti….”
“… Yes sir, the village office was once rehabilitated a few years ago. The funds used
are quiet much sir, but …. How much I don’t know. Capitalization? What do you
mean sir? Ow we don’t understand about that, hmmmm what we know is only the re-
sponsibility of rehabilitation funds being SPJ, but if the value of the capitalized assets
we don’t understand…”
From the information, the researcher concludes that the activity of capitalization to the reha-
bilitated assets is not done. It certainly does not implement Permendagri No. 1 in the year 2016
where the capitalization of the assets value of the village should be done, if an asset has been
done the asset rehabilitation with a significant value. Of course, with the large value of rehabili-
tation will affect the economic life and more benefit to the asset. Another reason that can be ob-
tained is the asset officer has not fully understood what the responsibility of the section main task
is given so far. They just walk and act in accordance with what is known without understanding
his section main task as an officer. Even to understand the new regulation issued by the govern-
ment.

4.2 Asset Security

The security activity is part of the asset inventory. The security here is a process, the way the
act of securing the assets in the form of physical, legal and administrative (Permendagri No. 1 in
the year 2016). The activity of securing village assets conducted in Peresak Village has not been
in accordance with the latest regulation. This is indicated by no certificate made for the property
(SHM) to the land assets owned and controlled by the Peresak village government. The research-
er found that the land where the village office built was not certified or has no certificate, even
the village office was established decades ago. The same thing happen in some lands owned as
assets by the Peresak village have not been certified. On those lands, have been built several fa-
cilities which help the village to give service for the society such as; Posyandu building, meeting
hall and place of learning alqur’an (TPQ). These assets have not been accompanied by legal
ownership of the government. Here’s the informant’s expression:
“ belum ada sertifikat tanah desa ini, saya juga kurang tahu kenapa karena sejak
saya pegang tugas aset memang tidak ada. Alasannya mungkin bisa ditanyakan sa-
 ma sekdes pak….. iya iya tanah milik desa yang lain juga sepertinya belum ada.
Saya saja belum pernah lihat….”
(“… The land of this village has no certificate, I also don’t know why. Since I hold
the assets task, it has no certificate. For the reason perhaps can ask to SEKDES sir….
Yes, another land owned by the village also has no certificate. I never see the certifi-
cate...”)
And it’s reiterated by the village secretary’s statement
“ ….iya memang sejak berdiri kantor desa belum pernah dibuatkan sertifikat tanah
ini, termasuk tanah-tanah di tempat lain punya desa…. Hmmm sebenarnya kami dari
pihak desa sudah sering pak usulkan ke dinas pertanahan, tapi… katanya belum ada
aturan tentang hal itu… kemarin juga pas proyek PRONA juga sudah coba kami
usulkan, tapi ya… jawabannya gitu-gitu aja……”
(“…yes it’s true, since the village has been built, the land was never made the certifi-
cate, the other lands owned by the village also have no certificate… hmmmm Actual-
ly we are from the village officer has proposed to the official land about this, but….
he said that there is no rule about this. Yesterday, when we did a project PRONA, we
also have proposed about it, but yes… the same answers…”)
In addition, the Peresak village government has not made a letter of agreement between the
village and the TPQ management on the building establishment of the land belonging to the vil-
lage for learning activities of Al Qur’an. According to the regulation for the administrative order-
ing, each village whose land used by other parties has to make a letter of borrowing. It aims to
pacify the village asset that may be misused by other parties and may one day claim that the land
belongs to him. Here’s the informant’s expression:
“ selama ini memang nggak pernah buat surat seperti itu… apa ya…kalau menurut
kami yang penting pihak yang mengusulkan permohonan jelas siapa… secara resmi
mengajukan surat ke kami dan tujuannya baik…. Kenapa tidak kami berikan pakai..
toh juga kalo dibiarkan kosong gitu aja, gak ada yang rawat… ya dengan minta izin
secara resmi ke desa dan kegiatannya jalan sudah cukup kok buat kami.. apalagi ini
kan untuk hal kebaikan….”
(“…. So far we never make such kind of that letter… the most important thing is that
it’s clear who proposes… and it officially files a letter, and has a good intention…
why we give it because if we let the land empty, no one will take care of it. by asking
permission to the village office and the activities run well , those are enough for us.
Moreover it’s for goodness…”)
From the expression of the informants can be concluded that the activities of the security as-
sets of the village are still not properly implemented and can adversely affect the future. Borrow-
ing, according to Permendagri No. 1 in the year 2016 is the village asset utilization between the
village government and other village as well as the institute of village community in the local vil-
lage in the particular time without receiving benefit.

4.3 The Documentation And Reporting Result Of Ownership Registration Assets.

The activities of documentation and reporting result of ownership registration assets carried
out by the Peresak village government on the village assets owned are still not accordance with
Permendagri No. 1 in the year 2016. The activities documentation here is to make a file in the
form of documentation consisting of photos with the address where the asset position is located,
and also all the opera-related to the assets. During this, the Peresak village government only rec-
ords the name of the assets and the amount, without recording the assets detail data such as; pho-
tos etc. The activities of documentation and reporting result of ownership registration assets aim
to control and supervision, where the head of the village as the top leader in the village govern-
ment must know and supervise the existence of the village asset-controlled by the village gov-
ernment. The activities of reporting result are done by the officers to the head village every year,
but what the officers reported are limited, only the assets which are located around the area vil-
lage office just like equipment and the machine. The village assets located outside the village of-
fice area just like the land, the road, etc is only recorded by the affairs chief of development. In
this case, the coordination between the officer assets and other village official has not been estab-
lished well. Their understanding of the village assets that need to be recorded and reported is
limited to the village assets around the village office. Here’s is the informant’s expression:
“…tetap kami laporkan inventarisir aset desa, kalau ada pengadaan misalnya meja,
kipas angin atau laptop kami catat di buku inventarisasi terus nanti kami serahkan
buku inventarisasi ke kepala desa. …kita update terus kok pak, cuma kalau dokumen-
tasi kami nggak pernah lakukan. Hmmm… apa yang ada dicatat aja nama barang
sama jumlahnya gitu. Tiap tahun kok kami lakukan itu. Tapi ini yang kami catat aset
yang ada di sekitar lingkungan kantor desa aja, nggak tahu juga kalau aset lain yang
di luar dari lingkungan kantor tetap harus dilaporkan pak…..”
(“… We keep reporting the inventory of the village assets. If there is procurement
such as; table, fan and laptop, we note them in the inventory book… then we submit
to the head village… we always update it, but we never do the documentation.
Hmmmm… we only write what we have such as; the name and the amount of the
Items. We do it every year, but what we only record the assets which are located
around the area village office. I don’t know if the assets which are located outside the
village office must be reported sir…”)
From the information expressed by the informant, the researcher can conclude that so far the
village officer or the government apparatus of the village has not fully understood about their du-
ties as the assets manager. This is similar to the research conducted by Rahmawati dkk (2015)
Stating that one of the main factors that hinder the implementation is the limited understanding
about the content of the constitution as the basic regulation. They simply do the task in accord-
ance with what they know without any initiative to remedy the shortcomings. In this case proba-
bly, the central government or the regional government rarely or have not conducted socializa-
tion about the regulation or the regulation that is applied to the management of the village assets.
If it’s so, this is not appropriate with the government’s expectation that the published regulation
is intended to improve the management of the assets in the future. The socialization is the first
step of change, without the socialization, any form of the government policy will never be under-
stood by the people involved in it and the hope towards the better change will be difficult to
achieve.

5 Conclusions

The results of this study indicate that the implementation of the village assets management es-
pecially related to the inventory of the village assets of Peresak village, Narmada district, West
Lombok Regency still has not implemented what is contained in Permendagri No.1 in the year
2016. It is proved by the findings where the recording activity of the assets has not done the re-
cording of the assets value, equipment and machine are not codified and labeled, and also isn’t
done the capitalization of the assets value of the assets which have been done rehabilitation with
significant cost. In the activity of securing the assets, there is not certification of the land which
is controlled by the village including the land where the office building is built and has no bor-
rowing letter on the land that used by other parties.
The problems in the inventory of the village assets are influenced by various aspects such as;
the availability of the human resources, the organizational commitment which is in the entity in
carrying out the its duties and function, also the involvement of the involved parties in associat-
ing the regulation in this case, that is Permendagri No. 1 in the year 2016. The researcher sees
that these three factors is the main factors inhibiting the implementation of the regulation on the
assets inventory management in Peresak village, Narmada District, West Lombok Regency.
The limitation of this study is the scope of the village assets management which focuses only
on the assets inventory. The future research is expected to be able to deeply review the concept
of whole the village assets management which includes planning, procurement, utilization, secu-
rity, maintenance, deletion, transfer, administration, appraisal, guidance, supervision and control
so that the research will be able to give the description whether or not the village assets man-
agement is in accordance with the latest regulation issued by the government.
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