Increased Revenue for Local Governments through Asset Management

Increased Revenue for Local Governments through Asset Management

Local governments often struggle to find new sources of revenue to fund their operations, meet community needs, and boost the local economy. One potential solution to this challenge is through effective asset management and utilization.

So, how exactly can asset management help local governments increase their local revenue, known as PAD ( Local Own-source Revenue)? 

The complete answer can be found in the following article.

What Is Asset Management for Local Governments?

Asset management is the process of keeping track of and overseeing various assets owned by an organization, including local governments. Local governments themselves own a diverse range of public assets such as infrastructure, property, land, buildings, and vehicles, among others.

Therefore, it is crucial for local governments to manage their local assets effectively, as it can help them enhance efficiency, transparency, and revenue. The ultimate goal of asset management for local governments is to ensure that public assets are well-maintained and offer optimal benefits to the community.

This involves keeping a watchful eye on these assets, planning for their future, maintaining them, and optimizing their use. 

By having a thorough understanding of the condition, value, and potential of their assets, local governments can make informed, data-driven decisions to manage and allocate their resources

How Asset Management Can Benefit Local Governments

After comprehending the concept of asset management, let’s discuss why asset management strategies are crucial for local governments.

Increase Local Own-source Revenue (PAD)

Local governments can increase their revenue by managing the public assets they own. For instance, if a local government owns undeveloped land, it can be identified and considered for property development. 

The government can work in collaboration with the private sector for the management and development of the land. This partnership allows the local government to increase its revenue stream, which reduces the over-reliance on tax revenue.

Improve Transparency and Accountability

Effective asset management is critical in upholding transparency and accountability in local government. By meticulously monitoring and recording vital information such as asset ownership, condition, and value, local authorities can produce precise and transparent reports to the public. 

The result is a strengthened trust and amplified accountability in the administration of public assets, guaranteeing that these resources are utilized in the best interest of the community.

Budgeting and Expenditure Control

Local governments have another significant reason to conduct planned maintenance and timely repairs on public assets. It helps them control costs and expenditures associated with these assets.

By carrying out regular maintenance, they can prevent costly damages that may require expensive repairs. In addition, proper inventory management helps local governments avoid unnecessary asset purchases or overlapping.

Improving Efficiency in Asset Utilization

Local governments can also gain maximum value from their assets with good asset management. By managing assets properly, local governments can optimize utilization and maximize value.

Better Decision-Making

Having an asset management strategy in place can help local governments make more informed decisions based on data related to public assets. 

By having access to comprehensive information about asset conditions, values, and potential, local governments can plan for long-term investments, identify profitable projects, and prioritize effective fund allocation.

Asset Types Managed by Local Governments

It’s important to know the different types of local assets that local governments own. These include:

Equipment and Machinery 

Local governments use various equipment and machinery to support their activities and services. This includes construction vehicles, fire-fighting equipment, heavy machinery, office equipment, and other technical equipment.


Local governments own essential buildings such as government offices, public buildings, healthcare centers, schools, sports facilities, and other infrastructure.

Utility Fleet 

Vehicles are used to provide utility services to the community, such as garbage trucks, fire trucks, street cleaning vehicles, and other public service vehicles.

Emergency Vehicles 

Ambulances, police cars, and fire trucks are considered emergency vehicles that local governments own.


Local governments own land within their jurisdictions that can be used for various purposes, including infrastructure development, public space enhancement, residential development, and economic development.

Physical and Digital Infrastructure 

Local governments manage and maintain physical infrastructure such as road networks, bridges, water channels, parks, and other public facilities. 

They also manage digital infrastructure such as telecommunications networks, internet services, computer systems, and other information technology infrastructure.

Digital Asset Management Benefits for Local Government

Despite the widespread recognition of monitoring and managing regional and national assets, many still rely on manual or traditional methods that only involve record-keeping. 

This approach is susceptible to data inaccuracies and lacks transparency. As a result, local governments would be better off using digital asset management which provides many advantages.

What are the advantages?

Here are some benefits of digital asset management that local governments should consider:

Higher Data Accuracy 

Digital asset management provides various benefits to local governments. One of the most significant advantages is the higher data accuracy it offers. 

Human errors, which are common in manual record-keeping, can be minimized through digital asset management. Data can be directly input into the system using devices like computers or smartphones, reducing the likelihood of errors.

Effective and Real-time Tracking

Another benefit of digital asset management is the effective and real-time tracking and monitoring of assets. Every change that occurs to an asset can be tracked and viewed accurately and transparently. 

Asset maintenance, repairs, transfers, or disposal can be clearly recorded and easily accessed. This allows local governments to monitor asset conditions and performance effectively.

Easy Access and Search for Asset

Digital asset management also enables easy access and search for asset data stored in a central database. Authorized parties can easily access relevant information by entering keywords or specific filters. This makes searching for asset data faster and more efficient, enabling officials to find the information they need quickly.

Making the Most of Assets with LOKASI Intelligence

Local governments can optimize asset use and utilization further by leveraging the asset management feature available in LOKASI Intelligence. 

LOKASI Intelligence is a platform that integrates location intelligence, geospatial data, and analytics. Through this feature, governments can directly monitor and visualize their assets along with essential asset-related information. 

They can also identify potential uses of assets. For example, if the government owns vacant land, they can profile it using LOKASI Intelligence to discover that the land is close to various points of interest (POIs) such as train stations. 

This information can serve as a basis for the local government to collaborate with third parties to develop offices, stores, or housing, generating new revenue sources and boosting the local economy.

Learn more about how LOKASI Intelligence can help businesses by emailing or WhatsApp: +6287779077750.


Why is asset management essential for local governments?

Using asset management, local governments can ensure that their public assets are well-managed and provide optimal benefits to the community.

What are the functions or benefits of local asset management?

Asset management can increase revenue, enhance transparency and accountability, control costs and expenditures, improve asset utilization efficiency, and enable better decision-making.

What are the assets owned by local governments?

Local governments have various assets, including land, buildings, equipment and machinery, utility fleets, emergency vehicles, and physical and digital infrastructure.

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