Financial Efficiency, Institutional Autonomy, and Asset Utilisation in PTNBH

Abstract

This study investigates the effects of cost efficiency and financial autonomy on asset utilisation in Indonesian legal-entity public universities (Perguruan Tinggi Negeri Badan Hukum—PTNBH). Asset utilisation is measured using the Asset Utilisation Ratio (AUR), cost efficiency is proxied by the operating expense-to-revenue ratio, and financial autonomy is measured by the proportion of non-government revenue to total revenue. Using multi-year panel data and robustness testing, the findings indicate that cost efficiency does not have a statistically significant effect on asset utilisation, suggesting that expenditure optimisation alone is insufficient to improve asset productivity. In contrast, financial autonomy has a positive and significant influence on asset utilisation, demonstrating that universities with greater revenue independence are better able to allocate, maintain, and maximise the use of their assets. Higher financial autonomy provides institutions with greater flexibility to invest in infrastructure, upgrade facilities, and support asset-intensive teaching, research, and innovation activities, ultimately enhancing organisational performance. These findings support public-sector management and resource-based perspectives, emphasising the strategic role of financial autonomy in strengthening institutional capacity. The study highlights the importance of revenue diversification over cost-control strategies and contributes novel evidence by jointly examining efficiency and autonomy as determinants of asset utilisation in PTNBH.