THE EFFECT OF HUMAN RESOURCES AND INFORMATION TECHNOLOGY ON THE REVALUATION OF GOVERNMENT FIXED ASSETS

The central government has implemented a government fixed asset revaluation policy. The main objective of the policy is to present the fair value of fixed assets in the government's financial statements. However, the results of fixed asset revaluation are not accepted by the BPK and must be corrected and recorded in the government financial statements for the 2019 fiscal year. Competent human resources and the use of information technology are considered two factors needed to achieve the revaluation objectives. This study was conducted to determine the level of significance of these two factors by distributing questionnaires to BMN officers and assessors from 82 ministries/ agencies throughout Indonesia. The research data were processed by path analysis method using the Structural Equation Model (SEM) partial least squares (PLS) through Smart PLS 3.3.2 software used to assess measurement models and research structural models. The results of data processing concluded that the competence of human resources and information technology has a significant effect on the revaluation of government fixed assets. However, information technology needs to be improved again because the significance value is only half that of the human resources competency value.


INTRODUCTION
The central government continues to improve transparency and accountability in the management of state finances to achieve good governance.All technical aspects consisting of regulations, institutions, financial information systems, and development of the quality of human resources are regulated in the management of state finances.The central government carried out a revaluation of government fixed assets for transparency and accountability in state financial reporting, as the latest policy in public sector financial accounting.
The revaluation of government fixed assets is the valuation of fixed assets by government institutions as accounting entities to produce the fair value of assets presented in the government's financial statements.The purpose of the revaluation of go-vernment fixed assets is to present the fair value of fixed assets in the government's financial statements, build a better asset database so that it is easy to manage state pro-perty (Barang Milik Negara, BMN), identify idle assets, and increase BMN leverage as underlying assets for State Sharia Securities (Surat Berharga Syariah Negara, SBSN).
The application of impairment accounting is not regulated in Government Accounting Standards (Standar Akuntansi Pemerintahan, SAP) but only in the Financial Accounting Standards (Standar Akuntansi Keuangan, SAK).Government Regulation (Peraturan Pemerintah, PP) Number 71 of 2010 on SAP, PSAP 07 Accounting for Fixed Assets paragraph 59 states that the general revaluation of fixed assets is not permitted, because SAP does not regulate accounting for revaluation of fixed assets and the value of fixed assets presented based on acquisition costs.The revaluation of government fixed assets uses the SAK analogy approach by making PP and Minister of Finance Regu-lations (Peraturan Menteri Keuangan, PMK) on revaluation of state property.Deviations from the provisions are carried out by applying nationally applicable government regulations, namely, PMK Number 191 of 2015 which regulates revaluation applies only to fixed assets in Indonesia.This is done because according to SAK revaluation for several similar fixed assets is possible, and the difference between book value and revaluation value must be presented in the equity of the financial statements.
The revaluation of BMN is applied by the government starting in 2017 based on Presidential Regulation (Peraturan Presiden, Perpres) Number 75 of 2017 concerning Reappraisal of State/Regional Property and PMK Number 111/PMK.06/2017concerning BMN Valuation which is used as a guide in conducting a revaluation of fixed assets.Revaluation of government fixed assets is carried out on land, buildings, and roads, irrigation, and networks (Jalan, Irigasi, dan Jembatan, JIJ) which are acquired until December 31, 2015 and used by ministries/agencies.
The official website of the Ministry of Finance states that the revaluation of fixed assets of BMN in 2018 nationally as of April 2018 has reached 14% and increased the value of BMN by IDR 275.25 trillion or 338.97% of the book value of BMN from the previous IDR 81.2 trillion to IDR 356. 4 trillion (DJKN, 2018).However, based on the BPK RI Audit Report on the 2017-2018 BMN Revaluation at the Ministry of Finance as Property Manager, ministries/agencies as Goods Users, and Related Agencies stated that the BPK auditors concluded that they did not accept the results of the 2017-2018 BMN revaluation by considering the results of the tests carried out in 82 ministries/ agencies.Quality assurance policies and quality control as well as the input of revaluation results in applications have not been fully implemented.The implementation of revaluation by officers is not in accordance with the applicable provisions which is one of the reasons for the revaluation results not being accepted by the BPK.Besides, there are other causes, including a limited budget, time, and resources compared to registration serial number (Nomor Urut Pendaftaran, NUP) objects that are revalued.Based on these findings, BPK RI recommended the minister/head of agencies as Goods Users to improve the inventory data and follow up on the results of the 2019 BMN revaluation (BPK RI, 2018).The government has reappraised the objects in the audit findings as a form of follow-up.In addition, testing and refinement of the revaluation results besides the BPK findings were also carried out as a result of the 2019 property manager audit findings.So that the government financial statements for the fiscal year of 2019 present the revaluation value of fixed assets.
Human Resources (HR) has an important role in the accountability of the management of state finances.Likewise, BMN management and administration, in the presentation of the latest financial statements, must have carried out a revaluation of fixed assets following the applicable regulations.Competent human resources are needed so that the management and administration of BMN meet the expectations and that the results are accountable, relevant, and comparable.The implementation of government fixed asset revaluation is a new thing for BMN management and requires good human resources who have an understanding of the applicable regulations and implementation in the field.
The revaluation of government fixed assets is carried out by utilizing information technology in the form of an accounting information system applications consisting of the State Property Accounting Management Information System (Sistem Informasi Manajemen Akuntansi Barang Milik Negara, SIMAK BMN) and the State Asset Management Information System (Sistem Informasi Manajemen Aset Negara, SIMAN).SIMAK BMN and SIMAN are operated by ministries/agencies as Goods Users and the Appraisal Information System (Sistem Informasi Penilaian, SIP) is operated by the Ministry of Finance as Goods Managers.All of these applications are products of the Ministry of Finance which are used to support the Ministry of Finance's duties in carrying out reliable and quality government affairs in the field of state finance.PMK 97/PMK.01/2017concerning Communication Information Technology Governance in the Ministry of Finance stated that the information system was developed and managed to support national e-government and to create an integrated financial management information system.
Several previous researchers have studied the revaluation of fixed assets.Nailufaroh (2019) proves that the company's financial performance increases with the implementation of fixed asset revaluation, while Iatridis and Kilirgiotis (2012) prove that company size is positively related to the revaluation of fixed assets.Surgawi and Solikhah (2018) prove non-financial factors determine the decision of the revaluation of fixed assets where managerial ownership and government ownership have been proven to positively influence the decision of the revaluation of fixed assets.Palea (2014) states that the fair value of assets reflects current market conditions and provides timely information that will increase transparency.Palea (2014) believes that historical cost and fair value should not be considered as competitors, because they have different purposes.Historical cost provides information to investors about the cost of investment, whereas fair value provides a measure of what management expects in return.Gardini (2014) found different results which proved that the asset revaluation carried out by local governments according to their fair value failed because they paid less attention to Fair Value Accounting (FVA) and instead they chose a system based on historical cost accounting.This failure was not due to a lack of trust by the local government in FVA as the basis for measuring assets, but because of the difficulty in estimating fair value and the high cost of measurement.Local governments agree that determining fair value is very important to increase transparency and objectivity.While Baek and Lee (2016) found that asset revaluation that results in fair value in financial statements could provide more relevant information and reduce information asymmetry.Choi, Pae, Park, and Song (2013) state that the implementation of fixed asset revaluation is more opportunistic than reflects economic reality.The results of his study show that most companies that choose the revaluation model in 2008 would switch back to the cost model when making a formal transition to International Financial Reporting Standards (IFRS) in 2011.While Skoda (2015) shows that the economic paradigm affects measurement in financial reporting and it can change one day according to the circumstances.However, this condition cannot be a reason for eliminating fair value accounting treatment.Wali (2015) proves that revaluation is a tool to increase creditors' perceptions of the company's financial health, thereby increasing the company's loan capacity.Zakaria, Edwards, Holt, and Ramachandran (2014) prove that the asset revaluation guideline framework is used by those who prepare and use financial reports.This framework supports the task of asset revaluation decisions and the potential consequences for stakeholders.Research related to the recognition of land assets under roads (LUR) as assets in local government financial reports was conducted by Elhawary (2018).The results of his research prove that the land assets under the road are rejected and the LUR calculation requirements must be canceled immediately.
Research related to the influence of HR competencies on accounting business processes has been conducted by previous researchers.Among them are Puspitarini, Firmansyah, and Handayani (2017) which prove that HR competencies have a positive effect on the application of accrual-based government accounting on BMN management.The higher the human resource competencies, the more successful the implementation of accrualbased government accounting on BMN management.Research by Elfauzi (2019) shows that HR competencies have a significant positive effect on the quality of financial reports.This means that with skilled human resources, the quality of the resulting financial reports will be higher.
Previous research on information technology with an accounting information system approach, among others, was carried out by Yuliani (2010).The results state that the use of regional financial accounting information systems affects the quality of financial reports.In line with the results of this study, Gusherinsya and Samukri (2017) prove that human resource competence and the application of accounting information systems affect the quality of financial reports.However, it is different from the results of research conducted by Puspitarini et al. (2017) that prove information technology does not affect the application of accrual-based government accounting in BMN management.Good information technology such as adequate computers, good internet connection, computerized BMN, the existence of software that supports and maintains computers does not guarantee the successful application of accrual-based government accounting.
Given the phenomena and empirical gaps that have been described, the author is interested in analyzing the influence of HR competence and information technology on the revaluation of government fixed assets in 2019.Research related to fixed asset revaluation was previously carried out in the private sector and new in the public sector.The purpose of this study was to determine the effect of human resource competence and information technology on the implementation of revaluation of government-owned fixed assets.Thus, a reliable fair value of assets can be generated and can be presented in the government financial report fairly.

Agency Theory
The main theory that can support this study is agency theory.In its development, agency theory is divided into two streams, namely the main research agency theory and positivist agency theory.Positivist Agency Theory (PAT) is used to overcome deficiencies in the main agency research, especially those related to complex relationships that result in conflicts of interest (Fayezi, O'Loughlin, & Zutshi, 2012).According to Jati (2019), the main problem in agency relations is the occurrence of conflicts of interest caused by each party trying to maximize its own benefits.In state financial accountability, the role of the government as the agent is to carry out programs for the development and welfare of the people, while the main role is the community represented by the Houses of Representatives (Dewan Perwakilan Rakyat, DPR) or the Regional Houses of Representatives (DPRD).Accountability is needed to avoid conflicts of interest.
Law Number 23 of 2014 states that the responsibility for good governance, particularly related to the management of state finances, is conveyed through government financial reports, both central and regional governments.The central and local governments as recipients of the mandate are obliged to prepare and present financial reports.This is the accountability and transparency of the government management and administration that has been given to the government.

Revaluation of Fixed Assets
According to Perpres Number 75 of 2017, Article 5 states that BMN Revaluation is carried out on land, buildings, roads, irrigation, and networks at ministries/agencies.The results of the follow-up revaluation are in the form of corrections to the value of fixed assets in the ministry/agency's financial statements.Fixed asset revaluation is a revaluation of the company's fixed assets caused by an increase in the value of these fixed assets on the market or due to the low value of fixed assets in the company's financial statements due to devaluation or other reasons (Nailufaroh, 2019).Fixed asset revaluation is carried out based on the fair value of fixed assets or market value at the time of appraisal using the valuation method commonly used in Indonesia and carried out by an appraiser recognized by the government.

Human Resource Competencies
Research conducted by Puspitarini et al. (2017) and Elfauzi (2019) explain that HR competencies have an important role in the application of accrual-based accounting and the quality of financial statements.The success of implementing accrual-based government accounting and the quality of accountable financial reports is influenced by the competence of human resources.Likewise, with BMN managements and administrators, competent human resources are needed to carry out fixed asset revaluation in accordance with established regulations and policies.
The implementation of government fixed asset revaluation is a new thing in BMN management which has only been applied in private sector accounting.Therefore, it is necessary to have good HR competencies through understanding the regulations and their application.This is necessary to avoid deviations from the revaluation value of fixed assets presented in the financial statements.The financial statements are prepared to provide relevant information regarding the financial position and all transactions carried out by the reporting entity during one reporting period.Government financial reports are expected to provide useful information for users in assessing accountability and making decisions on economic, social, and political decisions (Efendi, Dewi, & Gamayuni, 2018).
Based on these matters, human resource competence is indispensable for the implementation of organizational duties and functions.The competence of human resources will affect whether a government has carried out its duties and functions in a professional, effective, and efficient manner.The better the competence of human resources, it is hoped that the implementation of their duties and functions will be even better.In this study, the implementation of fixed asset revaluation supported by competent human resources will be carried out well, and the quality of the asset revaluation results can be used in financial reports.This is summarized in the hypothesis: H1: Human resource competence affects the revaluation of government fixed assets

Information Technology
According to PMK Number 97 of 2017, information systems are a series of hardware, network devices, software, human resources, and procedures and/or rules that are arranged in an integrated manner to process data into useful information to achieve a goal.According to Romney and Steinbart (2015), an accounting information system (AIS) is a process of collecting, processing, storing, and reporting data and information.It consists of six components including people, procedures and instructions, data, software, information technology infrastructure, and security measures for storing data.Computer software is a tool used to generate information.A well-designed AIS can add value to an organization by increasing quality and reducing product or service costs, sharing knowledge, increasing efficiency, improving internal control structures, and improving decision making.
Research conducted by Yuliani (2010) also Gusherinsya and Samukri, (2017) prove that the use of more advanced information technology in an organization can help carry out tasks properly, in this case, the presentation of quality financial reports.Information technology can assist organizations in the reliability of the presentation of information, including the presentation of the fair value of revalued fixed assets.Based on this, the second hypothesis in this study is: H2: Information technology affects the revaluation of government fixed assets.

RESEARCH METHOD
This study uses primary data namely, data sourced obtained from the field.The data collection method used was a questionnaire.The resulting data is primary data in the form of respondents' perceptions of the variables used.The questionnaire generally consists of two parts, where the first part contains questions about the respondent's data.The second part contains questions related to the research variables.The questionnaire given by the researcher was designed using a 5-point Likert scale.
The sampling method in this study using the purposive sampling method.The purposive sampling method is a sampling method that is limited to certain types of people who can provide the desired information because of only those who have certain criteria or are following several criteria set by the researcher (Sekaran, 2010) Structural model testing is performed to see the relationship between constructs or latent variables seen from the coefficient of determination (R 2 ).The stability of this estimate was evaluated using a statistical t-test obtained through the bootstrapping method.
The value of R-square (R 2 ) is the coefficient of determination in the endogenous construct.The coefficient of determination is defined as how much the ability of all exogenous variables to explain the variance of their endogenous variables.The higher the R 2 value, the better the prediction model of the proposed model, because the value on R 2 can be used to measure the effect of the independent variable on the dependent variable.Chin in Azwar et al. (2016) states that the R 2 value is 0.67 (strong), o.33 (moderate), and 0.19 (weak).
Hypothesis testing using PLS through the bootstrapping method.Testing the hypothesis can be seen from the t-statistic value and the probability value.Where the statistical t-test aims to determine the effect and significance of each independent variable on the dependent variable.Criteria for the results of hypothesis testing are as follows: 1.If the t-statistic > 1.96 and p-value < 0.05, then it is real, in other words, accept the hypothesis; 2. If the t-statistic < 1.96 and p-value > 0.05, then it is not real, in other words, reject the hypothesis.

RESULT AND DISCUSSION
The questionnaires that have been distributed online to all respondents have been collected and are valid as many as 77 questionnaires.Respondents as BMN management officers have different educational backgrounds, genders, and experiences.Information about respondents is described in Table 1.The questionnaire is then processed using SmartPLS version 3.3.2software.An independent sample t-test with a significance level of 5 percent was used to answer research questions.
Based on the experience of respondents as BMN officers, in general, they have more than one year of experience and some even have more than 10 years of experience.The number of respondents with less than one year of experience was relatively small (7.79%).Therefore, the respondents relatively have sufficient experience to be able to convey their perceptions related to BMN management problems, including fixed asset revaluation.

Measurement Model Testing
Testing

Structural Model Testing
The results of data processing through Bootstrapping show that the dependent variable has an R 2 value of 0.42932 (strong) or above 0.33 and close to 0.67.This implies a strong

Hypothesis Test
The research hypothesis testing is illustrated in Figure 1.The effect of human resource competence on the revaluation of government fixed assets has a coefficient value of 0.441 (tstatistical value = 3.46051), so this relationship model has a significant effect because the t-statistic value is greater than the t-table and the p-value is 0.00059 or less than 0.05.Empirically H1 is proven and accepted.This proves that the competence of human resources in implementing the revaluation of government fixed assets is needed.By having competent and professional quality human resources, the results of fixed asset revaluation will be better.Also, the results of the revaluation implementation result in a fair value of assets that can be accepted by BPK so that it can be stated in government financial reports.These results support the research conducted by Puspitarini et al. (2017) and Elfauzi (2019) that HR competence has an important role in the application of accrual-based accounting and the quality of financial statements because, in the end, the fairness of the value of the revalued assets determines the quality of financial reports.
The effect of information technology on the revaluation of government fixed assets has a coefficient value of 0.269 (t-statistical value = 2.36540), so this relationship model has a significant effect because the t-statistic value is greater than the t-table and the p-value is  2010) also Gusherinsya and Samukri (2017) which state that the use of more advanced information technology in an organization may be more able to implement fixed asset revaluation so that the objectives will be easily achieved.

CONCLUSION
The results of data analysis show that the competence of human resources and information technology has a significant effect on the revaluation of government fixed assets.
The results of this study are in accordance with the hypothesis and it means that H1 and H2 are accepted.For the information technology variable, although its significance and coefficient value is greater than 1.96, the significance value is only half of the HR competency value.
According to the results, the author suggested that HR competence can be developed by conducting comparative studies related to the management of government fixed assets between work units and other work units, even between ministries/government agencies.Besides, rewards and punishments can be applied to motivate BMN operators so that they can improve their performance, compete fairly among operators, and develop ideas and ideas from BMN operators.It is necessary to carry out regular training to update knowledge and regulations related to government fixed assets, especially in terms of accrual basis and asset revaluation.
The application of IT in the implementation of revaluation of government fixed assets needs to be improved again in services, both hardware, software, and internet connection so that obstacles in the field can be minimized and objectives can be maximally achieved.Services in the IT field can be carried out by holding technical guidance, workshops, or Focus Group Discussions (FGD) on the use of information technology in the form of applications related to fixed asset revaluation.Improving the quality or replacing hardware with new ones also needs to be done.While internet connection bandwidth can be added so that the network connection is smooth in the process of asset revaluation activities.
For further research, the author suggests focusing more on the revaluation of government fixed assets, especially how it affects financial reports after knowing the quality of the last fixed asset revaluation carried out in 2019 by government ministries/agencies.

Table 1 .
Respondent Demographicsdetermination of all independent variables in explaining the variance of the dependent variable.Next is to see the path coefficient value and t-statistic value using the bootstrapping method on SmatPLS as shown in Table3.The t-table value is calculated with the provisions of the alpha (α) value of 0.05 and the degree of freedom (DF) of N-2.The amount of data used in this study was 77, so the DF was 75.The t-table value for DF 75 and (α) 0.05 was 1.99210.Based on the table above, it can be seen that all t-statistical values are greater than the t-table of 1.99210.Thus it can be stated that all independent variables have a significant effect on the dependent variable.

Table 2 .
Discriminant Validity and Composite Reliability

Table 3 .
Path Coefficient and t-Statistical Value