FAILURE TO DELEGATE AUTHORITY MANAGEMENT OF ASSETS OF STATE ISLAMIC UNIVERSITY AS A PUBLIC SERVICE AGENCY

Abstract

The objective of this policy is to grant state Islamic universities, as public institutions, the authority to manage assets. Prior to the implementation of this policy, the government primarily controlled asset management. The Public Service Agency has given state-affiliated Islamic universities the authority to manage a variety of assets, including cash, investment funds, endowments, tangible and intangible assets, and business operations. This authority offers the opportunity to effectively manage finances to enhance the quality of higher education services. The study was carried out at three State Islamic Universities located in Indonesia. The study employs a quantitative approach, with data gathered from primary sources through a structured Likert scale questionnaire. The study uncovered deficiencies in asset management within State Islamic universities operating as Public Service Agencies. Their current focus remains on the rental of underutilised assets. The management of idle cash is not efficient. Furthermore, there has been a lack of efficient management and consideration of utilising endowment funds as a viable income stream for intangible assets. The reason for this failure lies in the fact that state Islamic universities, like the Public Service Agency, have not undergone the necessary transformation from being government agencies to adopting an institutional and mindset shift from traditional bureaucrats to more entrepreneurial bureaucrats.