OPTIMAL CAPITAL STRUCTURE ANALYSIS OF PT. ANEKA TAMBANG TBK.

• Main Author: Iskandar, Biyan
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/41759
• Institution: Institut Teknologi Bandung

PT. Aneka Tambang Tbk. is one of the biggest mining commodity companies in Indonesia. The company provides various minerals such as ferronickel, saprolite, limonite, gold, and bauxite. In 2009, the government issued a regulation that bans the export of unprocessed minerals, thus forcing mining companies in Indonesia including PT. Aneka Tambang Tbk. to build a domestic smelter facility to refine the raw commodities before exporting them. To build a smelter facility in Indonesia requires a huge amount of funds, according to the Financial Director of PT. Aneka Tambang Tbk, Dimas Wikan Pramudhito, the company is planning to gather a large sum of money which amount is Rp. 3.39 trillion. To realize the plan, the company should be able to acquire the appropriate proportion of funds that required the lowest rate of return to the investors, that could be achieved through calculating the optimal capital structure by using weighted average cost of capital (WACC) method. PT. Aneka Tambang Tbk’s current capital structure consists of 30% debt proportion and 70% equity proportion, which cost of capital is 9,99%. Through WACC analysis, the writer found the optimal capital structure that maximize the value of PT. Aneka Tambang Tbk. consists of 22% debt proportion and 78% equity proportion, which results in 8.63% cost of capital. PT. Aneka Tambang Tbk. must decrease Rp. 1,492,573,987,750.80 amount of debt and raise Rp. 4,882,573,987,750.80 amount of equity to achieve the optimal capital structure.