Financial Performance Analysis of Pharmaceutical Listed Companies in Indonesia, Three Years Before and After Universal Healthcare Coverage Initiation (2010-2018)

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Purwanto, Hery and Daryanto, Wiwiek Mardawiyah (2020) Financial Performance Analysis of Pharmaceutical Listed Companies in Indonesia, Three Years Before and After Universal Healthcare Coverage Initiation (2010-2018). International Journal of Business, Economics and Law, 21 (3). pp. 30-46. ISSN 2289-1552

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Abstract

Indonesia has moved towards the universal healthcare coverage system since 1 January 2014, named “Jaminan Kesehatan Nasional” or JKN, and is implemented by “Badan Penyelenggara Jaminan Sosial-Kesehatan” or BPJS-K. However, during the seven years of implementation, many barriers have hindered, the biggest issue is the limited source of fund from the central government to defray the entire operations. Since the rolled-out, BPJS-K reported financial deficits, this simultaneously impacted to the ability to manage Account Payable to the drug suppliers, which makes pharmaceutical companies are suffered the most. In December 2019, many pharmaceutical companies through the association, so called “GP Farmasi”, reported cash flow problem due to BPJS bad debt to the healthcare providers. There are three types of pharmaceutical companies operate in Indonesia: private multinational, private domestic, and state-owned companies. All of them are facing the same financial pressure’s problem to bankruptcy risk. The purpose of this study was to analyze the financial performance of listed pharmaceutical companies in Indonesia among the three group companies; private multinational, private domestic and stateowned, and to examine the significant difference of the financial performances between four years before and four years after the JKN initiation, during period of 2010 to 2018. There were six companies became object of this study: PT. Darya-Varia Laboratoria Tbk., PT. Kalbe Farma Tbk., PT. Indofarma (Persero) Tbk., PT. Kimia Farma (Persero) Tbk., PT. Merck Tbk., and PT. Merck Sharp Dohme Farma Tbk, then grouped into multinational, private domestic and state-owned companies. The data were collected from audited financial report which published on Indonesia Stock Exchange (IDX) website, divided into 2 periods: prior (2010-2013) and post (2015-2018). The data were examined using financial ratio analysis to the respective company, and statistical t testing was applied to validate whether one group was having better performance to others, and also whether there were significant differences on the financial performance before and after the JKN program. The author believes that the findings will be helpful to illustrate the impacts of JKN implementation to the financial performance of listed pharmaceutical companies in Indonesia.

Item Type: Article
Subjects: H Social Sciences > HG Finance
Divisions: Research And Community Empowerment > Journals
Depositing User: Dr. Wiwiek Mardawiyah Daryanto
Date Deposited: 17 Nov 2020 02:41
Last Modified: 21 Dec 2021 07:18
URI: http://repository.ipmi.ac.id/id/eprint/932

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