ASSET LIQUIDITY CONCENTRATION AND ASSET LIQUIDATION STRUCTURE AS PERCENTILE-BASED RISK INDICATORS IN PUBLIC OFFICIALS' WEALTH DISCLOSURE: EVIDENCE FROM INDONESIA

Public sector asset disclosure systems face persistent challenges in converting compliance data into actionable oversight intelligence. This study introduces two preventive forensic accounting measures Asset Liquidity Concentration (ALC) and Asset Liquidity Structure (ALS) analyzed through percentile-based benchmarking to enable risk-stratified governance oversight. Examining the complete population of 992,081 asset disclosure reports from Indonesia’s LHKPN system during 2020–2022, the study documents extreme concentration of illiquid assets (median illiquid asset ratio: 95.9%), accompanied by substantial heterogeneity across government sectors and administrative area. Percentile analysis indicates that officials in the upper quartile (P75) hold 99.3% of their assets in illiquid forms, whereas those in the lower quartile (P25) maintain 84.8% illiquidity. Sectoral analysis reveals that executive branch officials exhibit the highest variability in asset liquidity (IQR: 0.174), while legislative officials display the most concentrated illiquid asset profiles (P75: 99.6%). The ALS complexity index (median: 0.614) suggests a level of portfolio diversification that substantially increases verification burdens. Analysis by administrative area further shows that central government officials maintain more complex asset structures (mean ALS: 0.627) compared to regional government officials (mean ALS: 0.626). These percentile-based thresholds facilitate systematic identification of statistical outliers warranting enhanced scrutiny, without presuming misconduct. Overall, the study advances preventive forensic accounting by demonstrating how structural asset characteristics, when assessed using distributional benchmarks, can transform passive compliance systems into active, risk-based governance tools under conditions of limited oversight resources.