Implementation of Fixed Asset and Intangible Asset Derecognition: A Case Study at BPPKAD Blora Regency in 2019

Abstract

The process of eliminating regional property is one of the most important stages in regional asset management. This process can also serve as an indicator of accountability in carrying out the duties and functions of regional apparatus. Funds that have been spent on capital goods must be reported accurately and accountably. This type of research is qualitative research with a case study approach at the BPPKAD of Blora Regency. The study aims to analyze the process of eliminating regional property and its conformity with regional property management regulations at BPPKAD Blora Regency. There are four indicators in the framework that influence the elimination process, namely the internal control system, regulations, operational standards and procedures, and human resources. The research data were obtained through in-depth interviews with officials responsible for asset management policy, consisting of the Head of the Asset Division, Head of Sub-Asset, and asset management officers at BPPKAD. Data were also collected through field observations in the form of photos and documentation. The collected data were then analyzed and concluded. The results show that the process of eliminating regional property is not in accordance with established operational standards and procedures. However, the process is in accordance with regulations on regional asset management. The Blora Regency Government faces constraints due to the lack of adequate warehouse facilities, causing high costs in the goods transfer process.