THE RELATIONSHIP OF CREDIT CHARACTERISTICS AND COAL PRICE WITH REPAYMENT CAPACITY: CASE STUDY OF A HEAVY EQUIPMENT LEASING COMPANY

• Main Author: Endru Subekti, Hanifa
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/22344
• Institution: Institut Teknologi Bandung

In 2015 and 2016, heavy-equipment leasing company have felt either stagnation or reduction in their business. Many company forced to sized-down their business because of the condition. Deputy of OJK also said that in 2015, heavy equipment leasing company has the highest level of non-performing financing (NPF) compared to other leasing with 4.34%. This research has an aim to find the determinants of NPF in a heavy-equipment leasing company. The method used is multi-linear regression and logistic regression. This research used two methods because the dependent variable could be interpreted using two ways, continuous variables and binary. The sample of data is acquired from one heavy-equipment leasing company regarding their lessee’s credit characteristic from 2006-2016 and coal price from infomine.com on the date the contract is signed. The independent variables used are amount of financing, amount of security deposit, effective rate, tenor, percentage of financing, age of contract and coal price. For the dependent variable used is the NPF status itself. The lessee that has status of NPF needed to exceed 90 days for their maximum overdue. For multi-linear regression the dependent variable uses continuous variable, while logistic regression uses dummy variable with 0 as not NPF and 1 as NPF. Before doing multi-linear regression, a classical assumption test needed to be done. Classical assumption test used in this research is multi-collinearity and heteroscedasticity. For multicollinearity test, amount of security deposit said to have multicollinearity to amount of financing, so for further analysis the amount of security deposit will be dropped to prevent bias. Heteroscedasticity test shows that the model has heteroscedasticity, therefore the multi-linear regression will be using robust standard error. The result for multi-linear regression shows amount of financing, tenor, percentage of financing and coal price have positive relationship with NPF. Also, age of contract has negative relationship with NPF. Logistic regression result shows that percentage of financing and tenor have positive relationship with NPF and age of contract has negative relationship with NPF. The result of this research aim to help the company in risk-profiling their lessee, also help the future research to broaden the research subject for this type of research.