Article Metrics

Article abstract view : 107 times
PDF full text: 104 times

Rental Value of a Local Government Asset Using Asymmetric Valuation

Farach Difa(1), Akhmad Makhfatih(2), Uswatun Khasanah(3), Inayati Nuraini Dwiputri*(4)

Abstract


This study tried to identified the market and the rental value of Grha Z as one of the local assets in Province A. This study used cost approach and income approach in valuation to obtain rental value and Net Present Value (NPV) of the building, the construction cost of a new Grha Z building, management office, home generator, and warehouse. Because of the limited information, this study valuates the asset asymmetrically. The result of the calculation produces the value of assets, taxable value assets as the basis for calculating the value of the rental assets according to Minister of Finance (MoF) Regulation 33/2012. The results showed that the rental value of local assets such as land and buildings in the area Grha Z can be increased by Regulation of Indonesian MoF Number 33/2012. It can be used as a material
consideration in the improvement of regional asset rental agreement.

Keywords: rental value, income approach, cost approach, local asset

(1) Fakultas Ekonomika dan Bisnis Magister Ekonomika Pembangunan, Universitas Gadjah Mada, Indonesia
(2) Fakultas Ekonomika dan Bisnis, Universitas Gadjah Mada, Indonesia
(3) Fakultas Ekonomi dan Bisnis, Universitas Ahmad Dahlan Yogyakarta, Indonesia
(4) Fakultas Ekonomi, Universitas Negeri Malang, Indonesia
* Corresponding Author

 https://doi.org/10.21632/irjbs.12.1.31-39


Full Text:

PDF

References


Amidu, A-R., & Boyd, D. (2018). Expert problem solving practice in commercial property valuation: an exploratory study. Journal of Property Investment & Finance, 36(4), 366-382.

Appraisal Institute. (2015). The Appraisal of Real Estate, Fourteenth Edition, Illinois: North Michigan Avenue Chicago.

Cooper, D.R, & P.S. Schindler. (2006). Business Research Method /Metode Riset Bisnis (Translation). Jakarta: PT Media Global Edukasi.

Herabat, P., P. Sirirangsi, & D. Satirasetthavee. (2003). Network Level Maintenance Planning Using Pavement Valuation. Journal of the Eastern Asia Society for Transportation Studies, 5(Oktober), 956-971.

Hidayati, W. dan B. Harjanto. (2003). Basic Concept of Property Valuation /Konsep Dasar Penilaian Properti. Yogyakarta: BPFE Universitas Gadjah Mada.

Law of Republic Indonesia Number 32 Year 2004 On Local Government / Undang-Undang Nomor 32 Tahun 2004 Tentang Pemerintahan Daerah.

Lusht, K. M. (1997). Real Estate Valuation, Principles and Application, USA: Time Hirros Higher Education Group.

Moszoro, Marian & Gasiorowski, Pawel. 2008. Optimal Capital Structure of Public-Private Partnership. IMF Working Paper.

Mulangu, F., & Kraybill, D. (2015). A cost-benefit analysis of improved irrigation when faced with the risks of climate change on Mount Kilimanjaro. Journal of Water Resources and Economics. 10, 31 – 44.

Newell, G. & Marzuki, M.J. (2018). The Increasing importance of UK healthcare property as an alternate property sector. Journal of Property Investment & Finance. 36(5), 466-478.

Plimmer, F & S. Sayce. (2006). Depreciated Replacement Cost Consistent Methodology? Proceeding of the 2010 XXIII FIG Congress in Munich, Germany.

Prastiwi, N.B., Makhfatih, A., & Dwiputri, I.N. (2017). Evaluation of Public Infrastructure: a Case of Sapon Dam Kulon Progo, Indonesia. Jurnal Ekonomi Pembangunan 18(1), 93-101.

Regulation of Minister of Internal Affairs Number 17 Year 2007 on Technical Guidelines for Management of Regional Property / Peraturan Menteri Dalam Negeri Nomor 17 Tahun 2007 Tentang Pedoman Teknis Pengelolaan Barang Milik Daerah.

Regulation of Indonesian Minister of Finance Number 33 Year 2012 On Procedures of Implementation of Rental State Property / Peraturan Menteri Keuangan Nomor 33 Tahun 2012 Tentang Tata Cara Pelaksanaan Sewa Barang Milik Negara.

Government Regulation Number 27 Year 2014 on Central/Local Public Asset Management / Peraturan Pemerintah Nomor 27 Tahun 2004 Tentang Pengelolaan Barang Milik Negara/Daerah

Siregar, D. D. (2004). Manajemen Aset. Jakarta: Gramedia Pustaka Utama.

Supardi, U., H. B. Rudianto, & M.L.A. Mukminin. (2010). Penilaian dan Properti. Jakarta: Mitra Wacana Media.

Susanto, Dedi, 2014. The Economic Evaluation of Surabaya Zoo Tourism Objects in Surabaya City (Land Development Analysis and Discounted Cash Flow) /Evaluasi Ekonomi Objek Wisata Kebun Binatang Surabaya Di Kota Surabaya (Land Development Analysis and Discounted Cash Flow). Unpublished thesis. Yogyakarta: Magister Ekonomika Pembangunan Universitas Gadjah Mada.

Wilmath, Tim, 2003, Estimasting The Market Value of Major League Sports Facilities, Assessment Journal 10 (3), 3–24.






Copyright (c) 2019 Farach Difa, Akhmad Makhfatih, Uswatun Khasanah, Inayati Nuraini Dwiputri

International Research Journal of Business Studies indexed in: