Public Asset Optimization and Going-Concern Sustainability of a Regional Water Enterprise: A Springate Model Approach

Ady Setiawan

doi:10.32535/ijafap.v9i3.4735

Public Asset Optimization and Going-Concern Sustainability of a Regional Water Enterprise: A Springate Model Approach

Ady Setiawan

Abstract

Regional government-owned enterprises (BUMD) in Indonesia carry a dual mandate of public service and commercial return, leaving many water utilities financially fragile. This study evaluates the going-concern sustainability of Perumda Air Minum Tirta Moedal, Semarang City, over 2018-2024 using the Springate (S-Score) model within a framework that links stewardship, financial-distress, and public-asset-optimization theory, the last proxied by non-revenue water (NRW). Four discriminant ratios from audited statements were aggregated into annual S-Scores and triangulated with asset-efficiency indicators. The S-Score ranged from 1.0133 to 2.1347, consistently exceeding the 0.862 cut-off and classifying the firm as healthy. This soundness, however, rested on solvency and a natural-monopoly structure rather than asset efficiency: the activity ratio stagnated at 0.57-0.69 while NRW reached 44.59% in 2024, far above the 20% target. The health is therefore structurally insulated rather than efficiency-earned, sustained by captive tariffs and regional capital injection, a pseudo going-concern in which a reassuring score risks a false sense of security over deteriorating assets. Genuine sustainability requires reallocating capital expenditure toward water-loss reduction, supported by stewardship-based, project-oriented governance and predictive early-warning analytics

Keywords

asset optimization; going-concern sustainability; non-revenue water; project-based asset governance; Springate model

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DOI: https://doi.org/10.32535/ijafap.v9i3.4735