Study of partnership form to improve idle land based on risk management

Assets for the company are important capital in running the company’s business. One form of company assets is land. Land assets are immovable assets provided in the Company’s Fixed Assets as long as they are not traded. Generally, land assets can be valuable if it’s sold or developed. If developed, land assets can contribute productively to the company, but conversely if these land assets are not developed (idle) will contribute non-productive to the company. Development of land assets can be done by companies itself or partnership with partners. Land assets contributing to non-productive asset will causes some problem such as legal problems and the cost of securing land assets. Legal problems will result in legal costs incurred to solve it. While the costs of securing land assets will continue to arise as long as the land assets are still attached to the Company or have not yet been developed. The purpose of this study is to response those problem. The writer examines the form of cooperation that can be carried out in accordance with regulations, dominant risk variables according to partnership, and then conducts case studies that will encourage risk-based forms of partnership.


Introduction
Assets are an important capital of a company. Assets are goods or things that have economic value, commercial value or exchange value owned by a business entity, agency or individual. Assets must be managed properly so that productivity can lift the company both in terms of the company's name or in terms of the company's finances because assets are a possible economic benefit obtained or controlled in the future by certain institutions as a result of past transactions or events (Financial Accounting Standard Board (FASB), 1985). In Indonesia has many regulations about asset. One of form asset is land.
Land Assets are generally owned by Companies / Agencies / Agencies both State Owned Enterprises (BUMN) and Private. In the course of assets this form of land can be optimized by developing, selling, or partnership. The Guidelines for Utilizing the Utilization of Fixed Assets of State-Owned Enterprises have been established by the Minister of State-Owned Enterprises (SOE) with the number PER-13 / MBU / 09/2014. In the introduction of this regulation, state-owned enterprises in carrying out their business activities have fixed assets that are less productive and have not been utilized or are not optimally utilized. This can be seen from the Return on Assets (ROA) of SOEs that are still low. Regarding to Company X's non-productive land asset, its potentially causes problem such as legal problem and cost of securing land asset. Based on data Company X, legal problem and cost of securing land asset are increasing every year. It shown in table 2 as follows:    figure 1, and figure 2, these issues / problems take cost which increase every year. This condition will impact to Company X if not solve yet. In this research, writer try to identify form of partnership which applicable for Company X based on regulation, and then identify risk variable which probably shown up in partnership based on interview expert, and applied to study case in on of nonproductive land Company X.

Public Private Partnership
In a book entitled Public-Private Partnership of Policy and Finance, E.R. Yescombe defines a Public-Private Partnership as a form of cooperation between the government as a public and private party as a private party with the following key elements: 1. Long-term contracts that occur between the government (public) and private (private) 2. For design, construction, financing, and operations carried out by the private sector.   4 3. Payments during the term of the PPP contract to the private party are carried out by the government and users directly as compensation for the use of infrastructure facilities. 4. Transfer of ownership from the private party to the government at the end of the PPP contract.
With this Public Private Partnership is expected to be able to utilize existing funding effectively and efficiently. Partnership has important meaning for both government and private parties where the horses of these parties will transfer the risks faced. There are two basic theories that underlie the first Public-Private Partnership is the Agency Theory which is based on the transfer of ownership and information rights that are explained in the organizational contract. The most important thing in this theory is the selection of agents according to the criteria of the main tasks and functions. The second theory is the Transaction Cost Theory. This theory focuses on contracts, especially in terms of financial structure, monitor, bonding and residual costs.   This regulation regulates several objects such as objects, selection of partners, partners, duration, and obligations of partners.

Risk Management
According to Kezner (1995) risk management is a process of identifying, measuring, developing, selecting and managing options to deal with those risks. Project Risk Management aims to identify and manage risks that are not handled by other parties the project management process. When not managed this risk can cause the project to deviate from the plan and fail to achieve its objectives.The main benefit of risk management is ensuring that the level, degree, type, and visibility of risk management are commensurate with the risk and importance of the project itself for the organization and stakeholders. R Max Wideman (1992) provides an overview of the integration of risk management with other project management functions on a project as follows:

Research Methodology
This Research is using qualitative, quantitative, and study. First writer will analyse regulation, benchmark and Company data to analysis form of Partnership which applicable for Company X, and then writer will interview important people to get expert judgement about risk variable which probably shown up and impact to Partnership. The risk variable as follows:  on table 3, there are 6 variable which divide into 37 sub variables. After this validated by expert judgement, it will share to respondent which already planned based on experience in PPP project. And then writer will analyse into dominant risk variable which has big probability and impact. And then it will assistance and validate by expert judgement. After that writer will apply to study case in land asset non-productive.