The Importance of System Transition in The Transfer of State Assets Management to Public Institutions: Analysis at The State Islamic University - Public Service Agency in Indonesia

State Higher Education Institutions in Indonesia have experienced a paradigm shift in their management, one of which is the State Islamic University. More than half of State Islamic Universities have Public Service Agency status. They focus on teaching, research, and community service as their primary business and must manage assets professionally and with economic value as potential income. This study seeks to uncover and assess asset management and management transformation of UINs with BLU status. This study uses a qualitative research paradigm with a multi-site approach. This research used in-depth interviews conducted naturally with key informants at three state Islamic universities in Indonesia that have had BLU status for more than ten years. These three universities are considered to have experience in managing assets and carrying out transformation. Data analysis approaches are Domain and Content Analysis. The research data is presented in four domains: cash management, tangible asset management, intangible asset management, and endowment fund management. Research data found that UINs with BLU status still manage assets in a normative and conservative manner. This finding is because UIN, which has BLU status, has yet to transform its university management fully. This study shows that there are demands for UIN with BLU status to transform from a government institution into an "agencification" and semi-autonomous system in line with the delegation of management of state assets from the central government.