Optimization Non-Tax State Revenue through Reutilizing State-Owned Property

Aims: This research was conducted to fill the gap in the results of previous findings regarding to the effects of product quality on reutilization decisions of the state-owned property in West Kalimantan. Reutilization of state-owned property will be one of the strategies to increase non-tax state revenue and the fiscal strength both in central and local government.

Study Design: The research was conducted by building and testing a model that can explain the direct influences of the quality of state-owned property, organizational image, and customer value on the decision to reuse state-owned property, as well as the indirect influences of the quality of state-owned property and organizational image on the decision to reuse state-owned property by using customer value as a mediator variable.

Place and Duration of Study: The research was conducted in the West Kalimantan region with 150 respondents. The criteria of the respondents are business owners that have been using state property to conduct business activities for at least one year. The data are collected internally at the Regional Office of the Directorate General of State Assets of West Kalimantan in 2014-2022. In addition, the external data are from partners who have reused state property.

Methodology: The research used the quantitative approach. The sampling technique in this research is Purposive Sampling. This technique used criteria chosen by the researcher in selecting the sample. Hypothesis was tested using SEM, while the data analysis technique was done by using SMART PLS version 3 software and questionnaire processing results was done by using a 5-point Likert scale as a variable measurement scale.

Results: The results of data analysis show that the quality of state-owned property has no impact on the decision to reuse state-owned property, but the image of the organization and customer value have an influence on the decision to reuse state-owned property. The quality of state property and organizational image are proven to have a significant direct effect on customer value. The results of the analysis regarding the role of customer value as a mediator show that customer value mediates the effect of the quality of state property and organizational image on the decision to reuse state property.

Conclusion: The conclusion of this research is that the owner of state-owned property must conduct continuing improvement of its asset management performance that will increase the organization's image. Furthermore, proper maintenance of state-owned property according to the provisions will attract the public to use it. Government agencies that own state-owned property must also make innovations and improve service quality on an ongoing basis, increasing the useful value as well as improving the quality of the physical condition of state-owned property. Therefore, the highly satisfied customers are encouraged to use it again.