ANALYSIS ON FOOD AND AGRIBUSINESS SECTORS FOR FINANCING TARGET OF PT BANK XYZ INTERNATIONAL INDONESIA

• Main Author: Andiani Hadi, Mitri
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/33552
• Institution: Institut Teknologi Bandung

In 2015 PT XYZ Bank International Indonesia, shifted its target market to only limited to food and agribusiness business customers, in accordance to the XYZ Group’s Banking for Food vision This shift resulted high NPL and company’s loss profit, because of the sudden change without the substantial preparation. Based on that fact, the objective of this research is to determine which of the food and agribusiness sub-sectors that is more beneficial and has less risks to the bank. This research use Altman Z Score and Time Interest Earned ratio in order to determine the priority ranking in Food and Agribusiness industry’s sector. Altman Z Score represents the sustainability factor because the score predicts the bankruptcy of a company, while Time Interest Earned ratio shows the solvency of the companies. The industry itself consists of several sectors which are Farming, Processing and Retail. The calculation is done to the thirty companies’ financial data in three years within these three sectors in Food and Agribusiness industry. After obtaining the results of the Altman and TIE calculation, the study use the statistic approach to know the ranking of these sectors, exercising Kruskal- Wallis and Mann-Whitney test. This research also examining the food and agribusiness industry in Indonesia using PESTLE and The Porter’s Five Forces analysis, and the PT XYZ Bank International Indonesia stand among its competitor in banking industry in Indonesia using SWOT analysis which later the analysis result will be used in implementation plan. After analyzing the Altman Z Score and Time Interest Earned ratio and compare the result, Processing sector in Food and Agribusiness industry is the most beneficial and has the least risk compared to Farming and Retail sectors. So, companies within the Processing sector needs to be prioritized in approaching as the prospected client to the bank. Implementation plan of these analysis is put on time schedule with period of one year and provision of human resources and business banking division.