FUNDING ALTERNATIVES TO SUPPORT COMPANY’S GROWTH PLAN: A CASE STUDY OF PT WASKITA KARYA

• Main Author: Anugrah Driatama, Pradipta
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/41068
• Institution: Institut Teknologi Bandung

Waskita Karya is a state-owned enterprise of construction and infrastructure field in Indonesia with the biggest market share and carries out many important projects for the government and private sector. Indonesia’s spirit to develop in the last 5 years demanded Waskita to seize opportunities and choose the appropriate funding strategies to avoid failure. Thus, this research is aimed to evaluate and select a funding alternative that fits and able to fill the external financing gap that was derived from the calculation of EFN present in the company’s planned targets in the end of 2019, which found to be 7% of sales growth from in the period of 2018 to 2019. This research’s methodology is quantitative analysis and uses Waskita Karya’s financial report and RKAP of 2019 as secondary data as source. The author confirms the data by conducting interviews with the Senior Vice Presidents of Waskita’s finance and business development and portfolio. The data is analyzed using EFN analysis, interest coverage ratio, sustainable growth and internal growth, debt to equity, capital structure and asset conversion. Result shows Waskita’s high dependency on long-term debt that causes gradual decline of ICR that threatens the company’s well-being and efficiency. The author advices the company to choose asset divestment and acquire capital gain, so the capital gain can be included to fulfill EFN needs.