FINANCIAL PERFORMANCE ANALYSIS OF SOE AND FOREIGN CAPITAL CEMENT COMPANIES IN INDONESIA

Authors

  • Ahmad Dahlan Malik Department of Sharia Economics, Universitas Internasional Semen Indonesia, Gresik, Indonesia
  • Wahyu Agung Handono Department of Sharia Economics, Universitas Internasional Semen Indonesia, Gresik, Indonesia

DOI:

https://doi.org/10.20319/pijss.2019.51.267294

Keywords:

Du Pont System Analysis, Financial Ratio Analysis, Economic Value Added (EVA), Tobin’s q, Altman Z-Score, and Discriminant Stepwise Method

Abstract

In order to achieve the Master Plan for the Acceleration and Expansion of the Indonesian Economic Development (MP3EI) program that has a significant impact on cement demand outside java, it is necessary to improve the performance of cement companies, especially state-owned (SOE) and Foreign Investment (PMA) cement companies in Indonesia. Their performance are analyzed along with the selection of independent variables in the discrimination function as a variable that explains precisely the performance of the company based on the Discriminant Stepwise Method. This research is analyzed by Du Pont System Analysis where both SOE and PMA have a good value of the performance; Financial Ratios where all of the companies have positive value with different trends; The Decree of the Minister of Finance of the Republic of Indonesia No. 826/KMK.013/1992 indicating that healthy company performance only owned by Semen Batu Raja and Indocement; Decree of the Minister of BUMN No: KEP-100/MBU/2002 in financial aspects having AA predicate healthy companies owned by Semen Indonesia, Indocement, and Siam Cement while the rest are having below AA grade; Economic Value Added (EVA) having no economic value by Semen Batu Raja and Ultratech while the other have positive EVA; Tobin’s q indicating that only Holcim and Anhui Conch companies having average value while the others having overvalued; and Altman Z-Score of SOE and PMA having value above 2.9 explaining the companies do not have the bankrupt condition. Meanwhile the data of those analysis is in the period 2013-2016.

References

Adira Kusumadiyanto. (2006). Financial Analysis to Assess Company Perormance in the Cigarette Industry Group, retrieved from http://repository.widyatama.ac.id/xmlui/handle/10364/450.

Agung, G. (2012). Financial Performance, retrieved from http://eprints.uny.ac.id/7632/3/BAB%202-09409131020.pdf.

Agustinus Ribo. (2013). Financial Report Analysis to Assess the Financial Performance of Telecommunications Companies Listed on the Indonesia Stock Exchange (Case Study at PT Telekomuni Indonesia Tbk), retrieved from http://repository.unhas.ac.id/handle/123456789/4465.

Aryati, G.R. (2014). Financial Report Analysis as a Tool to Assess SOE Performance at PT PLN (Persero) in 2012, retrieved from http://eprints.uny.ac.id/16872/1/TUGAS%20AKHIR%20RETNO%20GALIH%20ARYATI.pdf.

Astrini, S. F, et al. (2015). Practice of Corporate Governance and Value of SOE Companies in Indonesia, Jurnal Akuntansi/Volume XIX, No. 01, Januari 2015:1-30.

Bambang Sudiyanto dan Elen Puspitasari. (2010). Tobin’s Q and Altman Z-Score as Company Performance Measurement Indicators, Kajian Akuntansi, Februari 2010, Page 9-21 ISSN: 1979-4886.

Bisnis Indonesia. (2017). Ministri of Industry Determined to Spur Industrial Growth, Ministry of Industry of the Republic of Indonesia, Jakarta Selatan

Christina, N.P.Y, dan Sudana, I.P. (2013). Performance Assessment at PT. Adhi Karya with the Balanced Scorecard Approach, e-Jurnal Akuntansi Universitas Udayana 5.3 (2013): 516-529 ISSN: 2302-8556.

David Lianto. (2013). Assessment of Corporate Financial Performance Using Du Pont Analysis, Jurnal JIBEKA, Volume 7, No. 2, Agustus 2013 : 25 – 31.

Dodi Andrie. (2009). Financial Ratio Analysis as a Basis of Perfromance Assessment at PT. Telkom (Persero) Center, retrieved from http://digilib.mercubuana.ac.id/manager/n!@file_skripsi/4320401-005%20Dodi%20Andrie.pdf.

Erni Agustin. (2016). Financial Ratio Analysis for Financial Performance Assessment at PT. Indofarma (Persero) Tbk (Based on Decree of the Minister of SOE Nomber : KEP-100/MBU/2002), ejournal Ilmu Adminstrasi Bisnis, 2016, 4 (1): 103-115 ISSN 2355-5408.

Haryanti, C.S. (2015). Analisis Perbandingan Laporan Keuangan untuk Menilai Kinerja Keuangan pada Perusahaan Telekomunikasi (Studi Kasus BEI), Jurnal Untag, retrieved from https://jurnal.untagsmg.ac.id/index.php/sa/article/view/154.

Indra Hariadi, et al. (2013). Corporate Financial Perfromance Assessment Based on Financial Ratio Analysis and Economic Value Added (EVA) (Case Study at PT. Trikomsel Oke, Tbk and PT. Matahari Departement Store, Tbk Registered on the Indonesia Stock Exchange Periode 2009 – 2011).

Isti Fadah, et al. (2005). Financial Ratio Analysiis as the Basis of Assessment of Corporate Financial Performance in the Consumer Goods Industry Listed on the Jakarta Stock Exchange, Jurnal MODERNISASI, Volume 1, Nomor 1, Februari 2005.

Komar Benyamin. (2008). Comparison of Determinants of Financial Performance of Infrastructure and Non-Infrastructure Companies at Krakatau Steel Group, retrieved from http://digilib.esaunggul.ac.id/perbandingan-determinan-kinerja-keuangan-perusahaan-infrastruktur-dan-non-infrastruktur-pada-krakatau-steel-group-4001.html.

Lutfi, D.A. (2013). Benefits of Financial Report Ratio Analysis for Assessing Corporate Financial Performance in Other Mineral Metal Industry Groups, retrieved from http://repository.widyatama.ac.id/xmlui/bitstream/handle/123456789/2331/0106141.pdf?sequence=1.

Manafe, P. H. (2015). Performance Appraisal in Regional Water Supply Companies (PDAM) Pasuruan Regency Using Financial and Non-Financial Perspectives, retrieved from http://etheses.uin-malang.ac.id/2317/12/10520097_Ringkasan.pdf.

Mamik Mardiani, et al. (2013). Corporate Financial Performance Evaluation Using Financial Ratio Analysis and EVA (Economic Value Added) (Case Study at PT HM Sampoerna, Tbk. Registered in IDX for the Period of 2009 – 2011), Jurnal Administrasi Bisnis Vol 4, No 2 (2013).

Martinus Ristardi. (2008). Financial Report Analysis to Assess Company Performance, retrieved from https://repository.usd.ac.id/2637/2/022214126_Full.pdf.

Muthia Sari. (2015). Analysis of Corporate Financial Performance Assessment Using the Mehtod of Economic Value Added (EVA) (Case Study of PT. Bukit Asam (Persero) Tbk Registered on the Indonesia Stock Exchange), retrieved from http://fe-akuntansi.unila.ac.id/download/27022015_0641031168.pdf.

Naimatul Musahadah. (2015). Assessment of the Company’s Financial Performance by Using Financial Ratio Analysis (Case Study of PT Hanjaya Mandala Sampoerna Tbk which was listed on IDX for the Period of 2011-2014).

Ninik Lukiana. (2013). Implementation of Financial Ratios to Assess Financial Performance, Jurnal WIGA Vol 3, No. 2, September 2013 ISSN NO 2088-0944.

Nuraini, et al. (2015). Corporate Financial Performance Assessment Using Analysis of Return on Investment (ROI) with the Du Pont System and Residual Income (RI) Approach (Case Study of Cosmetic Companies and Household Purposes that Listing on IDX in 2011-2013, Jurnal Administrasi Bisnis (JAB) Vol 26, No 2. September 2015.

Nurlela, et al. (2012). Comparative Analysis of Financial Performance in Islamic Banking with Foreign Banking in Indonesia, Jurnal Visioner & Strategis, Volumen 1, Nomor 1, Maret 2012, ISSN: 2338-2864 p 95-106.

Putu Sulastri dan Hapsari, N.M. (2015). Financial Ratio Analysis to Assess Company Financial Performance (Case Study at PT. Andalan Finance Indonesia year 2011 – 2013), retrieved from http://ejurnal.stiedharmaputra-smg.ac.id/index.php/JEMA/article/view/214.

Rachma Zannati dan Wardoyo, D.U. (2016). Reveiw of Islamci Bank Financial Perfromance through the Approach of Economic Value Added (EVA), Jurnal Riset Manajemen dan Bisnis Vol 1. No. 1, Juni 2016, ISSN 2527-7502.

Reza Prayoga. (2014). Financial Performance Analysis of PT Pegadaian (Persero) Based on SOE Ministeral Decree Number KEP-100/MBU/2002 (Period of 2009-2012), retrieved from http://repository.unib.ac.id/8131/.

Rizki, P.A. (2009). Comparison of Financial Performance Analysis of PT. Indosat Tbk Uses the Financial Ratio Method and Economic Value Added (EVA), retrieved from http://www.gunadarma.ac.id/library/articles/graduate/economy/2009/Artikel_10205931.pdf.

Risky Fidianti. (2011). Analysis of Financial Performance Assessment with EVA Approach at PT Sumbere Batu Gowa in Makassar, retrieved from http://repository.unhas.ac.id/handle/123456789/1139.

Rosyati. (2004). Food and Beverage Financial Health Analysis (Case Study at PT. Indofood Sukses Makmur Bekasi), retrieved from http://jurnal.unimus.ac.id/index.php/psn12012010/article/view/471.

Santoso, Y. W. (2015). Calculation of ROE, ROA, and EVA Analysis of Financial Performance at CV Harmoni Mitra Sejahtera (Case Study on Mitra Sejahtera Harmoni CV Year 2011-2013) retrieved from http://eprints.dinus.ac.id/17094/1/jurnal_15416.pdf.

Silvi Junita dan Siti Khairani. (2013). Analysis of Company Performance by Using Financial Ratio Analysis on Telecommunications Companies Listed on IDX, retrieved from http://eprints.mdp.ac.id/748/1/JURNAL%202009200043%20SILVI_JUNITA.pdf.

Sucipta, I.K.A, et al. (2015). Analysis of Corporate Financial Performance by Using Financial Ratio and EVA (Economic Value Added) Methods in LQ 45 Companies Listed on the IDX, e-Journal Bisma Universitas Pendidikan Ganesha Jurusan Manajemen (Volumen 3 Tahun 2015).

Suhartono, F.A. (2000). Analysis of the Health Level of Corporate Financial Case Study at Secang Unit II Clothing Patal Industry, retrieved from http://www.library.usd.ac.id/Data%20PDF/F.%20Ekonomi/Akuntansi/932114114.pdf.

Sukhemi. (2005). Analysis of Financial Ratio to Predict Bankruptcy, retrieved from http://ekonomi.upy.ac.id/files/ANALISIS%20RASIO%20KEUANGAN%20UNTUK%20MEMPREDIKSI%20KEBANGKRUTAN%20_SUKHEMI_.pdf.

Suryajaya, G.D dan Trenggana, A.F.M. (2015). Application of Du Pont System to Measure Go Public Banking Financial Perfromance Registered on the IDX, e-proceeding of management : Vol 2, No. 3 Desember 2015.

Tulis, S.M, et al. (2011). Business Performance Measurement as an Information Source for Management to Establish Business Decisions (A Case Study of a Tobacco Company in Solo), Journal Unpar 2011, retrieved from http://journal.unpar.ac.id/index.php/Sosial/article/viewFile/102/90.

Ulin Ni’mah. (2011). Analysis of Financial Performance at BMT Cooperative for Business Development in Bergas District, Semarang Regency, retrieved from http://lib.unnes.ac.id/10662/4/12206.pdf.

Umiyati dan Faly, Q.P. (2015). Measuring the Performance of Islamic Banks with the RGEC Method, Jurnal Akuntansi dan Keuangan Islam Vol. 2, No. 2 (2015).

Umi Barokah. (2014). Financial Report Analysis to Assess the Performance of Regional Water Supply Companies in Tirta Binangun, Kulon Progo Regency, retrieved from http://eprints.uny.ac.id/16804/.

Utami, N.S. (2016). Financial Performance Analysis that Distinguishes Sharia Issuers and Non-Sharia Mining Sector Registered on the IDX, Jurnal Media Mahardhika Vol 14 No. 3, Mei 2016.

Winarsa, E.A., 2010, Financial Performance, retrieved from http://repository.widyatama.ac.id/xmlui/bitstream/handle/123456789/1436/Bab2.pdf?sequence=2.

Yuli Orniati. (2009). Financial Report as a Tool to Assess Financial Performance, Jurnal Ekonomi Bisnis Tahun 14, Nomor 3, November 2009.

Downloads

Published

2019-03-28

How to Cite

Malik, A. D., & Handono, W. A. (2019). FINANCIAL PERFORMANCE ANALYSIS OF SOE AND FOREIGN CAPITAL CEMENT COMPANIES IN INDONESIA. PEOPLE: International Journal of Social Sciences, 5(1), 267–294. https://doi.org/10.20319/pijss.2019.51.267294

Issue

Vol. 5 No. 1 (2019): Regular Issue

Section

Articles

License

Copyright (c) 2019 Authors

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.