The Effect of Budget Reallocation on Project Handover Acceleration and Asset Growth at PT PLN (Persero) Unit Induk Pembangunan Jawa Bagian Barat

Abstract

This paper proposes a budget reallocation mechanism to accelerate the Project Handover Process (Serah Terima Proyek/STP) at PLN UIP JBB. The mechanism is implemented to resolve delays in handing over completed infrastructure projects to the relevant operational units (UIT, UID, or UIP2B Jamali). The study describes the implementation process and evaluates its impact on asset recognition. Prior to the mechanism’s adoption (2019–2022), only 49 projects were handed over. After its application in 2023, the number increased to 101 projects, indicating an improvement of around 100%. The approach also contributed to a Rp 9 trillion increase in recognized assets and raised the conversion rate of Projects Under Construction (PDP) into assets to 667.84%. These results confirm that budget reallocation can significantly accelerate project handovers and improve asset management performance in the electricity infrastructure sector.