Strategic Asset Classification for Non-Core Property Portfolio: Case Study of PT PLN (Persero) UIP Jawa Bagian Barat

Abstract

Non-core property portfolios impose recurring financial burdens and governance challenges on infrastructure enterprises when asset utilization decisions lack systematic prioritization. This study aimed to establish an inventory baseline and develop an accountable asset classification framework for non-core properties managed by PT PLN (Persero) UIP Jawa Bagian Barat. An applied single-case study approach integrated document review, inventory reconciliation, governance compliance screening, the Analytic Hierarchy Process (AHP), and the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) within a Secure–Monetize–Activate–Dispose framework. Expert elicitation was planned across four institutional domains, while the analytical procedures were tested using simulated responses representing 13 experts. Inventory reconciliation identified 21 property intervention alternatives, comprising 10 idle and 11 underutilized locations, with estimated annual carrying costs of IDR 512.42 million. Three locations did not meet governance screening requirements and required remediation of asset registration or supporting documentation. The simulation classified five alternatives under Monetize, seven under standard disposal, six under priority disposal, and none under Activate. Insufficient asset-specific documentation regarding potential alternative uses constrained activation options, while sensitivity analysis of classification thresholds revealed provisional assignments for assets near decision boundaries. These simulation-based results demonstrated the operational feasibility of the classification workflow rather than its empirical validity. The proposed framework provided a transparent and traceable basis for strategic asset classification and decision-making. However, practical implementation required actual expert elicitation, comprehensive supporting documentation, independent asset valuation, and formal managerial approval before any proposed asset transactions could be executed.