Asset management of electricity distribution network is required in order to improve the network reliability so as to reduce electricity energy distribution losses. Due to strategic asset management requires long-term predictions; it would require a simulation model. Simulation of asset management is an approach to predict the consequences of long-term financing on maintenance and renewal strategies in electrical energy distribution networks. In this research, the simulation method used is System Dynamics based on consideration that this method enables us to consider internal and external influenced factors. To obtain the model parameter, we utilized PLN Pamekasan for the case study. The results showed the reduction of low voltage network assets condition on average in the range 6% per year, the average decline in the transformer condition is approximately 6.6% per year, and the average decline in the condition of medium voltage network assets is approximately 4.4% per year. In general, the average technical losses average of 1,359,981.60 KWH/month or about 16,319,779.24 KWH/year.