Page 42 - SUSTAINABILITY ISSUES & COVID-19

Table 1 Result of Asset Revaluation in 2017 – 2018

No. Jenis BMN Jumlah NUP Nilai Buku NilaiWajar Kenaikan Nilai Persentase
Kenakan
Dalam Triliun Rupiah
1 Tanah 119.422 1.133 4.796 3.663 323%
2 Bangunan 449.412 161 276 115 71%
3 Jalan, Jembatan dan 376.626 244 656 412 169%
Bangunan Air
Total 945.460 1.538 5.728 4.190 272%

4.2 The State-Owned Aset Revaluation vs GAS.
According to Government Regulation Number 71 the Year 2010, the government preparing and presenting The Financial
Report of Line Ministry and the Finansial Report of Central Government follows the accounting principles in GAS.
Regulations related to revaluation in GAS can be said to be very minimal compared to revaluation arrangements in
IPSAS. It is understandable because GAS still adheres to “historical cost” and does not allow revaluations, but there are
exceptions. It can be seen that the arrangements related to asset revaluation in GAS are still very minimal compared
to the asset revaluation arrangements in IPSAS. One of the problems is related to the presentation time of the BMN
revaluation. The government initially presented the BMN revaluation results on the revaluation date. The revaluation
carried out in 2017 was presented at the FRCG Year 2017. but It was rejected by The Audit Board because according
to the Audit Board, the results of the revaluation should have been presented at the FRCG if all revaluations had been
completed by DG-SAM to all the specified revaluation object. This will not be a problem if The GAS has arranged the
timing of the revaluation presentation and the government has guidelines regarding when is the right time to present
the results of the BMN revaluation.

Many countries have practiced convergence between financial accounting standards and international accounting
standards. The Financial Accounting Standards issued by the Institute of Indonesia Chartered Accounting that regulates
private sector accounting standards in Indonesia has converged with IFRS even though it has not carried out a “full
adoption”. As for the public sector, the convergence between GAS and IFRS, IPAS, or IAS has not yet been carried out.
Ideally, the revaluation is carried out regularly between 3 or 5 years according to IPSAS and IFRS and in the future GAS
will converge with IPSAS and IFRS. This convergence will certainly be beneficial for the development of accounting
and its application in government accounting. IPSAS helps public management to improve the quality of financial
information and simplify the internal supervision of public institutions (Ilie & Miose, 2012).

Several countries such as Australia, Romania, and New Zealand have carried out regular revaluation. Local governments
in Australia carry out asset revaluation every five years (Ivannikov, 2020). Meanwhile, Romania in the Romanian GASs
stipulates that assets in the form of land and buildings are revalued every three years (Matei, Ţole, & Stroe, 2017).
Revaluations carried out by the government in Indonesia have not been carried out regularly due to the high cost of
implementing the revaluation so that it is only carried out as needed. By conducting desktop valuations for certain
assets, it will give the possibility of regular asset revaluation by the Indonesian Government. However, this requires
quality inventory activities from ministries/agencies. Besides, a database related to comparative data for land valuation,
which is currently still using the full valuation, is needed so that land appraisal can use desktop valuations. Collaboration
with the Ministry of Agrarian and Spatial Affairs/National Land Agency for the use of land value zones can be a solution
to the need for a comparison database for BMN Land. The Government has used the land value zone developed by
the Ministry of Agrarian and Spatial Affairs/National Land Agency for the land certification programs. So that it can be
used as comparative data that is suitable and reliable.

The plan to revise GAS to comply with IPSAS gives hope of more detailed arrangements related to asset revaluation by
the central and local governments. Aversano & Christianens (2014) provide an opinion in their research, if the regulation
is still minimal, the development of specific new standards can be a solution. This is a good thing and the development
of a new specific standard for The state-owned asset revaluation can be a solution to the lack of guidelines in GAS.

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