FINANCIAL PERFORMANCE ANALYSIS AND MEASURENMENT OF STATE OWNED POWER GENERATION COMPANIES BEFORE AND AFTER ASSET REVALUATION IN 2015

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Anwar, Rosihan and Daryanto, Wiwiek Mardawiyah (2020) FINANCIAL PERFORMANCE ANALYSIS AND MEASURENMENT OF STATE OWNED POWER GENERATION COMPANIES BEFORE AND AFTER ASSET REVALUATION IN 2015. International Journal of Business, Economics and Law, 21 (1). pp. 18-31. ISSN 2289-1552

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Abstract

To support the electricity development program in Indonesia, electricity companies need to increase their financial strength so they can play a role in funding projects that are effective and efficient and with timely planning. PT. Indonesia Power (IP) and PT. Pembangkitan Jawa Bali (PJB), the two largest power generation companies in Indonesia, provided efforts to increase their financial strength to participate in financing electricity facilities by revaluing assets in 2015. After the revaluation of assets, the percentage of total equity to total assets of the two companies increased to more than 95% compared to the period before the revaluation of assets ranging from 82% - 86%. To examine the realization of the impact of asset revaluation on the condition of corporate finance in addition to total equity on total assets, this study has two objectives, first analyzing the financial performance of profitability, liquidity, activities, and solvency followed by conducting an assessment of the condition of financial health using eight financial indicators in the Minister of SOE No. PEM. -100 / MBU / 2002 as a benchmark. Secondly, validate differences in financial performance indicator before (2011-2014) and after (2015-2018) asset revaluation using the method of paired t-test statistical approach. The results of an assessment of the financial healthiness level stated that the achievements of the two companies in the period after (2015-2018) asset revaluation were as follows, IP (53.30; BBB, and less healthy) and PJB (60.75, BBB, and less healthy). The paired t-test results are obtained as follows: IP, there are no significant differences for the six financial ratios in ROI, cash ratios, current ratios, collection periods, ITO, and TATO, while PJB, there is no significant change for the three financial ratios in current ratio, ITO, and TATO.

Item Type: Article
Subjects: H Social Sciences > HG Finance
Divisions: Research And Community Empowerment > Journals
Depositing User: Dr. Wiwiek Mardawiyah Daryanto
Date Deposited: 30 Nov 2020 03:26
Last Modified: 17 Dec 2021 09:31
URI: http://repository.ipmi.ac.id/id/eprint/985

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