Financial Performance Analysis of Indonesia Pharmaceutical Industry before and After the Implementation of National Health Insurance

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Daryanto, Wiwiek Mardawiyah and Meriana, Meriana (2019) Financial Performance Analysis of Indonesia Pharmaceutical Industry before and After the Implementation of National Health Insurance. International Journal of Innovation, Creativity and Change, 8 (12). pp. 124-138. ISSN 2201-1323

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Abstract

After the Health Social Insurance Administration Organization (BPJS Kesehatan) implemented the national health insurance (Jaminan Kesehatan Nasional) in 2014, The profit of pharmaceutical MNCs has been reported to be dropping ever since. Although the pharmaceutical industry had 7.49% growth in 2016, this number actually dropped as the industry had double-digit growth at 12.31% in 2013. Thus, this study aims to measure the financial performance of pharmaceutical companies and will analyse the significant differences before and after the implementation of the national health insurance. The data was retrieved from annual financial reports and the period was divided into two periods, before the implementation of national health insurance (2011-2013) and after the implementation (2015-2017). The data was examined using financial ratio analysis, and paired t-test were applied to test the hypothesis based on the 11 variables or financial ratios. The results indicated that although the company still had a positive return on investments, the implementation of national health insurance has affected the profitability of the organisation. It also reveals that the overall financial performance of PT Kimia Farma is significantly affected after the implementation with a significant difference on 7 of the financial ratios examined in this study. The author believes that the findings will be helpful for managers to give insights when taking decisions. Key words: Financial Performance, Pharmaceutical Industry, Indonesia

Item Type:	Article
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce > HF5601 Accounting H Social Sciences > HG Finance
Divisions:	Research And Community Empowerment > Journals
Depositing User:	Rizky Amalia
Date Deposited:	29 Jan 2020 03:33
Last Modified:	19 Feb 2021 04:48
URI:	http://repository.ipmi.ac.id/id/eprint/655

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