<p>This study investigates how asset inventory and asset safeguarding shape asset optimization in local government agencies and demonstrates that their effectiveness depends critically on organizational collaboration. Drawing on stewardship and contingency perspectives, the research shows that accurate inventory records and robust safeguarding procedures significantly enhance asset performance by improving information reliability and protecting asset value. Collaboration further intensifies these effects by integrating cross-unit information, aligning responsibilities, and strengthening collective oversight. The study advances public asset management by empirically validating collaboration as a decisive organizational condition and provides practical guidance for governments seeking to improve asset utilization and governance quality.</p>