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The following article review is based on the article, “Public asset management

framework for local governments: Opportunities and challenges for public asset managers”.
The article review is made as if completing the guideline provided already, or answering the
questions asked, by quoting parts of scripts for the sake of providing evidence to support all the
claims raised to answer the questions. Hopefully I have tried to make my point of view clear
with all the supporting ideas taken from the article.

1. Citation: Include full title, all authors (last name, initials), full journal title, year, volume
number, and page numbers.
 PUBLIC ASSET MANAGEMENT FRAMEWORK FOR LOCAL GOVERNMENTS:
OPPORTUNITIES AND CHALLENGES FOR PUBLIC ASSET MANAGERS
PhD-c Hanis, Muhammad Hasbi and Assoc. Prof. Trigunarsyah, Bambang and Sen. Lec.
Susilawati, Connie (2010) Public asset management framework for local governments:
Opportunities and challenges for public asset managers. In: Proceedings of Second
International Postgraduate Conference on Infrastructure and Environment, (volume 2)
1-2 June 2010, The Hong Kong Polytechnic University, Hong Kong, pp. 132-142

2. Summary: Present summary of essential contents and main ideas

 In order to adopt and apply a proper public asset management framework, local
government asset managers should first identify the opportunities and challenges that
could appear if local governments adopt the framework.

 The aim of the study is to identify the opportunities and challenges, especially in
developing countries.

 The opportunities are more effective and efficient local government, accountable and
auditable local government organization, increase local government portfolio, reflect up
to date information for decision makers in local government, and improve the quality of
public services.

 Those challenges are local governments has no clear legal and institutional framework to
support the asset management application, non-profit principle of public assets, cross
jurisdictions and applications in public asset management, the complexity of public
organization objectives, and data availability required for managing public property.

 These opportunities and challenges have resulted in a requirement to improved public


asset management to produce a high level performance across all divisions and sectors
within the local government organizations.

3. Study purpose: Was the purpose and/or research question stated clearly? A clear statement of
purpose or research questions helps you determine if the topic is important, relevant, and of
interest to you.
 Yes, the purpose of the study is clearly stated on the “ABSTRACT”.

 Does the author clearly define a research problem or topic?


 Yes, the author clearly defined the research topic as, “The aim of the study is to identify
the opportunities and challenges, especially in developing countries, a local
government public asset manager is most likely to face when adopting the appropriate
Public Asset Management Framework.”

 Is its significance explained? Are core issues or research variables identified?

 Yes, the study implies that there are significant opportunities and challenges that local
governments in developing countries might be required to manage, if public asset
management framework is properly applied. In addition, the significance of the study is
also explained as the study helps to initiate further study to develop an asset management
system applicable for all local governments in developing countries, and will provide
useful input for the policy maker, scholars and asset management practitioners to develop
an asset management framework for more efficient and effective local governments.

 Is specialized terminology usefully defined?


 No, specialized terminologies are not usefully defined in the article, except the fact that
some are listed as “Keywords” before the theme of the article, although without any
definition aside. However, the list will help readers to search for the definition of the
terminologies by themselves, before reading the article in the first place.

4. Was relevant background literature reviewed? A review of the literature should be included
in an article describing research to provide some background to the study.

 Yes, there is a discussion on the literature about the opportunities and challenges theory
of applying appropriate public asset management framework, specifically on
“LITRATURE REVIEW” section.

 Does the author provide an adequate literature review?


 Yes, there is an adequate amount of literature reviewed. The author has split his/her
review in two parts, opportunities and challenges, and provided his/her findings in the
process of the literature review. For instance, scripts from the article are listed to support
the view that the author has tried to provide plenty points of view from varies literature
and references :-
 Summerell (2005, p. 8) argues that organizations, both private and public…
 … As the minimum requirement for effective management (Kooymans & Abbott, 2006,
p. 198).
 …, expenses and values of municipal properties are not completed (Kaganova & Nayyar-
Stone, 2000).
 …, rather than a public good (Cagle, 2003; Callahan, 2007; Carter, Klein, & Day, 1992;
Charles & Alan, 2005).
 According to Priest (2006, p. 237), the most obvious issue, …
 According to Simons (1993, p. 49), the objectives of private organizations and public
entities are different.
 …, not to mention more comprehensive information (Asset Management Reform, 1997).
 Its worldwide inventory lacked such key data as space utilization, facility condition,
historic significant, etc. (Ungar, 2003 cited in (Kaganova et al., 2006).

 Does it discuss current research on the problem, and help to situate the author’s own
research?
 Assuming the article is written in 2010, searching in the “REFERENCES” list, the most
recent reference the author used is 2009’s. The local government’s article “Local
Government Fiscal Capacity Mapping, 174/PMK.07/2009 C.F.R. (2009).” and “South
Sulawesi Province Secretary. (2009). Asset census Retrieved 2009.
 Strengthen our evidence, we can infer from the language usage in the literature review
part as it is written as: “For example, in Russia, there is still no regulation that clearly
defines which public lands in cities are owned by various government levels. Albania and
Kyrgyzstan have not passed any laws on public property.” And infer as if the author used
a current research on the problem to conclude the situation in Russia.
 Additionally, such certainties arise from the inclusion of current research findings in
literature review. For example, “In almost any country, different classes of property, and
even individual real property assets, are managed according to local government rules.
They often adopt traditional practices rather than assess and select the most appropriate
type of property asset management.” Therefore, according to the above listed reasons,
one can conclude that the author has used current research on the problem.
 Are the research objectives clearly stated? Are hypotheses or specific research questions
identified?
 The objectives of the research are stated on the “INTORDUTION” section of the article.
For instance, the author claims that, “There are some identical circumstances shared
among local governments throughout the world in relation to public assets.” After
stating some of the conditions, the author insists that, “All those conditions suffered by
local governments can be solved by application of a public asset management
framework (Anthony & Michael, 2004; Kaganova, 2008; Kaganova & Nayyar-Stone,
2000; Summerell, 2005). Although there might be other non-asset solutions to soften the
problem, adoption and application of a public asset management framework will
significantly reduce the impact of the circumstances above.” This reasons can be the
incentives for doing the research in the first place, questions asked by the society waiting
for a better solutions, which in turn initiated researchers to do a particular research on this
issue.
 “In order to adopt and apply a proper public asset management framework, the first step
local government asset managers should conduct is to identify opportunities and
challenges related to adoption and application of the framework. There should be a clear
identification of the opportunities and challenges that may arise as a result of adoption
and application of a public asset management framework. This identification will be
varied among local governments throughout the world, based on its circumstances and
uniqueness. Therefore, the aim of the study is to identify opportunities and challenges
that local government asset manager in developing countries could be required to
manage when adopt and apply public asset management framework.” From the script
above, we can clearly get the objectives of the research based on the hypotheses and the
conditions given above.

5. Methodology
 Does the author clearly identify the research methodology and any associated limitations
of the research design?
 The methodology that the author used is identified on the article, such as interviews,
document analysis and observations.
 Limitations were found on the process of gathering information. For example, “It also
intended to study sensitive matters that officers are reluctant to discuss.” So we can tell
from the article that some officers were reluctant to discuss some sensitive matters, which
had laid some limitations on the research design.
 Are participants described, including the method of sample selection if appropriate?
 Participants were described as, “Interviews were conducted in 2009 in the South Sulawesi
Province Office. There are 5 participants selected from South Sulawesi Province officers
based on their job responsibilities that related to public asset. In detail, two participants
are from technical public asset management officers, two participants from middle level
management and one participant from public asset management decision making.” The
description of the participants in the methodology is clearly stated, including their
position as well.
 The method of sample selection was implemented in particular as, “In detail, two
participants are from technical public asset management officers, two participants from
middle level management and one participant from public asset management decision
making.” This part of the article shows how the methodology the research used in taking
samples within the available participants.
 Are instruments adequately described, including issues of appropriateness, validity and
reliability?
 When dealing with the appropriateness, validity and reliability of the methodology used
for the purpose of the research completion, the author raised some ways they used for
tackling such issues. In the article, is states as, “From interviews, the study revealed that
there are some documents that need to be analyzed to support the data retrieved from
interviews. The first documents are the laws and regulations related to public asset
management; from the highest hierarchy i.e. at the Central Government Act and to the
lowest hierarchy i.e. at the provincial level. Besides laws and regulations in the asset
management area, local governments were producing other significant documents
related to the asset management process. Those documents include reports, notes,
communication documents, asset census/inventory lists, and other relevant documents.
All data collected was analyzed qualitatively.” As the article suggests, the researchers
used the information from the interview, and tried to verify or analyze documents
available for the appropriateness, validity and reliability of the information.
 Do any evident biases or ethical considerations arise in relation to the methodology?
 As mentioned above, the researchers used different approaches to deal with some
obstacles raised in the used methodology, so it is hard to claim that there were evident
biases in relation to the methodology.
 When looking for ethical considerations, the author clearly stated the fact that the
research was not aimed directly to reveal the asset managers behavioral as the center of
the attention. Instead it was aimed only on the study acquire the asset life cycle processes
as the center of the research. It is mentioned in the article as, “The objective of this study
is not to reveal the asset managers behavioral as the center of the attention, rather the
study acquire the asset life cycle processes as the center of the research. Therefore these
observations are only complimentary tools to reveal things that do not shown on the
papers and interviews.” Therefore, this can be provided as evidence on how the
researchers took steps carefully in order to not interfere with the sovereignty of the
country used as a center of the research.
 Are the methods for measuring results clearly explained and appropriate?
 Yes, as discussed above, the methods used for measuring results can be inferred from the
fact that the study used different approaches for the purpose of verifying the data and
information gained from the research, which in turn have a great deal of impact on
measuring the overall results. For instance, “From interviews, the study revealed that
there are some documents that need to be analyzed to support the data retrieved from
interviews. The first documents are the laws and regulations…. Those documents include
reports, notes, communication documents, asset census/inventory lists, and other
relevant documents. All data collected was analyzed qualitatively.”
6. Results
 What are the author's major findings and conclusions? Have these been supported by the
author's analyses, arguments, findings or evidence? Has the author overlooked anything?
 The author’s major findings and conclusions are mainly grouped as, opportunities that
local government asset managers could achieve by adopting current practice of public
asset management and challenges that local governments might face.
These are:-
 Challenges: - Absent of institutional and legal asset management framework;
- Old perception of local government towards public assets;
- Cross jurisdictions asset management within the local government;
- Complexity of public organization objectives;
- Unavailability of data required for public asset management.
 Opportunities: - more effective and efficient as well as more accountable and auditable in
managing public assets,
- increase local government portfolio,
- improve the quality of public services.
 The author had analyzed, and provided his/her own arguments, findings and evidences to
contribute for major findings and conclusions. This can be argued by providing some
scripts from the article. Such as, “One source of inefficiency is the presence of large
portfolios of vacant or underused properties. This condition is caused by the
harmonization of structure or the scope of government departments and agencies that
progress faster than local governments’ capability to reuse or dispose of public assets.”
 Additionally, looking on parts of the article as, “The administrative and financial
reporting system apply by local government in regard to applying the updated public
asset management, for example using accrual base accounting system, will create
accountable and auditable organization. The data used in the accrual based government
financial report enables the assessment of accountability and performance of government
entities.” We can conclude that the author has provided his/her own point of view in the
study. Even though there are a lot of evidences to support our claim, that the author had
provided findings or evidences, the above examples are hopefully enough.

7. Discussion
 Do the research results validate the author’s conclusions and/or recommendations?
 From all the claims and evidences we have seen throughout the research, we can say
research results do validate the author’s conclusions and support his/her hypotheses, and
also helps meet all the conclusions made so far based on the research made.
 Also recommendations were made by the author, for example, “In the selection of asset
ownership, as one asset management process, local governments select the type of assets
they need to deliver public service. It is important for them to identify and align their
assets with their core businesses. It is also important to categorize those assets based on
their importance and significance to the community.”
 Again, “Local governments’ asset managers would be well advised to strengthen their
understanding of public asset management by examining public services and mission
requirements, creating auditable cost and investment management strategies, and
optimizing facilities and infrastructure portfolios, and aligning asset decisions making
with community and organizational needs.” Such recommendations were provided by the
author in the article.
8. References
 Are references given (footnotes or bibliography)? What is the size of the reference
section? Are the references recent, important? How are the references used: for support,
rebuttal, etc.?
 References were given in the “REFERENCE” section of the article in the end. The
references were provided using the style of bibliography. Although footnotes are barley
seen on the study paper.
 Due to the fact that the research has included literature review part, this will have a
significant impact on the size of the reference section. So it is fair enough to claim that
the references used for the research is quite enough, which in the other hand makes the
size of the reference section positively affected to be fair enough.
 When asking whether the references are recent or not, as mentioned above the most
recent articles used are 2009’s, while assuming the research were made and also the
article was published in 2010. But also the researchers used references dated to 1999,
which clearly shows the scope of the reference usage in completing the research.
Therefore considering the scope of the used references and other observations, we can
claim that the references used are important for the study.
 Most of the references used are supporting the researcher’s point of view, which can be
seen from the literature review section.
9. Suggestion for future research: Does the author suggest areas for further research or
discussion?

 The author suggests that, the study helps to initiate further study to develop an asset
management system applicable for all local governments in developing countries. It also
will provide useful input for the policy maker, scholars and asset management
practitioners to develop an asset management framework for more efficient and effective
local governments. This is a suggestion made by the author on the usefulness of the study
as a whole to initiate further study in the future.
 But the author does not clearly suggest areas for further studies, research or
discussions.

10. Synthesis with class material: how the article is related to the course contents?
 The course we are taking, Public Asset Management is deeply concerned on
opportunities and challenges of matters, which can be really relatable with the article that
we have focused on. For this case, this article review will have a great deal of importance
in helping understand the course with the help of case study, such as this one, and
positively impact on encountering existing society problems of public asset management.

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