JOURNAL OF WORLD SCIENCE https://jws.rivierapublishing.id/index.php/jws Volume 2 No. 8 August 2023 DOI: 10.58344/jws.v2i8.346 1195 P-ISSN: 2828-8726 E-ISSN: 2828-9307 MISUSE OF STATE PROPERTY IN THE FORM OF STATE-OWNED HOUSES Rina Andriani 1 , Imam Subekti 2 , Mohamad Khoiru Rusydi Universitas Brawijaya, Malang, Indonesia rinaandriani@student.ub.ac.id 1 , subekti@ub.ac.id 2 , khoiru.r@ub.ac.id 3 ABSTRACT The management of class III state houses begins with the transfer of status of class II state houses to class III state houses, transfer of rights, lease purchase agreements, and transfer of property rights. This study aims to determine the process of managing class III state houses and the problem of misuse of state property in the form of class III state houses. This study uses a descriptive qualitative research method with a case study approach. Data collection techniques were carried out through interviews and documentation. The results showed that a lack of internal control could cause the problem of abuse of country houses. The solution to these problems is following up with applicable regulations and strengthening the internal control system. This research implies that it becomes the basis for compiling clear and detailed guidelines or guidelines on the management of class III state houses. These guidelines will assist the authorities in establishing rules that are more transparent, accountable, and efficient in managing these state houses. Keywords: country house, abuse, internal control system. Corresponding Author: Rina Andriani E-mail: rinaandriani@student.ub.ac.id INTRODUCTION The management of State-Owned Property in the form of government-owned houses is still not optimal. This is evidenced by the continued existence of problems faced by ministries/agencies in managing state-owned property in the form of government-owned houses (Wijaya et al., 2022). Based on the results of an examination by the Supreme Audit Agency of the Republic of Indonesia on the Central Government Financial Statements for 2021, there are problems with assets, including assets in the form of state houses controlled by other parties or fixed assets whose whereabouts are unknown in 23 ministries/agencies. The Ministry of Public Works and Public Housing is one of the ministries that is still facing this problem (Pribadi, 2020). The evaluation of budget implementation within the Ministry of Public Works and Public Housing (Kementerian PUPR) indicates the recurring findings of the Financial Audit Board, including the continued presence of State-Owned Assets being held by other parties. (BKPK PUPR, 2019). In fact, many official houses have changed their function in the field. They are controlled by the families of retirees, not by the employees concerned (BH and KPDPP PUPR, 2020). The existence of a state house controlled by another party who is not entitled to it or the use of a state house not by its function indicates that external parties have committed abuse to the organization. The intended abuse is a process, method, or act of abusing or doing something improperly. According to the Regulation of the Minister of Finance Number 138/PMK.06/2010, a state house is a building owned by the state and functions as a residence or residence and a family