EXTERNAL FINACNING ALTERNATIVES TO SUPPORT BUSINESS EXPANSION OF PT SOLID BERSATU JAYA

• Main Author: RACHMI PASYA (NIM: 29116034), DINNAR
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/26699
• Institution: Institut Teknologi Bandung

The construction sector growth is always above national economic growth. There are many government programs recently that support the development of construction sector. Projects of infrastructure and power plant will increase due to these government programs. This is an opportunity for contractors to expand its business. <br /> <br /> <br /> <br /> <br /> PT Solid Bersatu Jaya is a reputable company which has skill and experience in constructing many power plant, Chemical plant, infrastructure, and building. In 2017, the Sales of SBJ was increasing significantly. It becomes 1.2 Trillion Rupiahs of sales. To achieve 52% growth in sales in 2018, the company needs more funds to support it. <br /> <br /> <br /> <br /> <br /> The sales growth in 2018 is higher than its internal growth rate and sustainable growth rate so that the company needs external financing. It is about 400 Billion Rupiahs that should be obtained by PT Solid Bersatu Jaya. This external financing needs could increase company's debt and riskier the company for not to be able to pay debt obligations. <br /> <br /> <br /> <br /> <br /> The company needs a solution that can support company's growth but also keeps company's financial performance healthy. The solution that company could implement for this problem is getting a new source of funds from the public (IPO) and Bank loan. This solution makes company's financial performance healthy, increase corporate image and company value. <br />