Minutes of Proposed Village Asset Disposal: Navigating Asset Lifecycle Management

Under the general provisions of Permendagri Number 3 of 2024 (amending Permendagri Number 1 of 2016), Village Asset Management is defined as a comprehensive series of activities. This lifecycle includes planning, procurement, usage, utilization, security, maintenance, disposal, transfer, administration, reporting, valuation, guidance, and oversight.

What constitutes a Village Asset?
Village Assets are goods owned by the Village derived from original village wealth, purchased or obtained through the Village Budget (APB Desa), or acquired via other legitimate legal rights.

Understanding the Stages: From Utilization to Disposal

To properly manage the Minutes of Proposed Village Asset Disposal, one must understand the preceding stages of the asset’s lifecycle:

• Procurement: Activities to fulfill the asset needs of the Village Government for operational purposes.
• Usage: The management and administration of assets by the Village Government to perform daily duties and functions.
• Utilization: Optimizing assets not currently needed for government functions—without changing ownership status—to generate value for the village.

Definition and Purpose of Asset Disposal

Asset Disposal is the formal process of removing village assets from the official inventory list through a Village Head Decree. The primary objective is to release the Village Government from administrative and physical responsibility for assets no longer under its effective control or utility.

Criteria for Proposed Village Asset Disposal

As mandated in Article 21, Paragraph (2) of Permendagri Number 1 of 2016, assets may be proposed for disposal due to the following circumstances:

1. Transfer of Ownership: This includes the transfer of village assets to other parties, or loss of rights due to a legally binding court decision. In such cases, the village must remove the item from the inventory.
2. Destruction (Pemusnahan): Applicable to assets that can no longer be utilized and/or have no economic value (e.g., broken desks, chairs, or obsolete computers). This requires the Minutes of Destruction as the basis for the Village Head’s Decree.
3. Other Causes: This includes assets that are lost, stolen, or destroyed by fire.

The Role of the “Berita Acara” (Minutes)

The Minutes of Proposed Village Asset Disposal serve as the essential evidentiary document. It records the inspection of the asset’s condition and the justification for its removal. Without this document, the Village Head cannot legally issue the Decree of Disposal, which could lead to administrative discrepancies during audits.