PROPOSED OPTIMAL CAPITAL STRUCTURE AND FINANCING ALTERNATIVE FOR PT SEMEN INDONESIA (PERSERO) TBK.

• Main Author: GIOVANNI MUHAMMAD , KAHFI
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/28371
• Institution: Institut Teknologi Bandung

Indonesian cement industry is getting competitive because of the new entrants that offering a cheaper price than the existing player. The competition that occurs is made the industry on oversupply condition. This condition are made company’s market share decrease because they forced to sell their product cheaper. Decreasing market share are giving impact to company’s revenue and net income. To overcome this condition the company needs to find a new market or distribution channel outside Indonesia. For finding a new market or distribution channel company are need source of fund that comes from debt and equity instruments. <br /> <br /> This final project is using external, internal and company comparable analysis to determine the position in the market among their peers. The author is doing a simulation using 0% until 100% debt ratio for determining company’s optimal capital structure by looking at lowest WACC. In the last part of this final project, the author is using discounted cash flow valuation if the company wants to find a new market outside Indonesia. <br /> <br /> The company’s optimal capital structure and financing alternative are using 54% equity and 46% debt. The author is proposing company to make one of their subsidiaries listed or right issue meanwhile from debt side author is proposing company to issuing bonds.