CORPORATE FUNDING ALTERNATIVES TO SUPPORT BUSINESS GROWTH OF PT BERLIAN JASA TERMINAL INDONESIA

• Main Author: Pertiwi, Tanjung
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/42783
• Institution: Institut Teknologi Bandung

PT Berlian Jasa Terminal Indonesia (BJTI) is one of the subsidiaries of PT Pelabuhan Indonesia III (Persero) which provides services in port terminal operation. As one of the profit and revenue generator for a State-Owned Enterprise, PT BJTI always strive to improve its corporate performance, both on operational and financial basis. In 2019, PT BJTI faces quite a challenge, for the Shareholders expection to a significant performance improvement – which is 154% realization of revenue growth compared to 2018 revenue realization. The target of increasing sales as much as 54% is far above the Internal Growth Rate and Sustainable Growth Rate of PT BJTI which is only 1.88% and 3.18%. In order to reach the expected business growth, PT BJTI requires additional funding from external sources. By using the External Fund Needs exercise, it is known that the need for additional external financing of the company for IDR422 billion. The addition of external financing will certainly increase the risk of the company in performing its obligation of debt repayment. Taking into account the current condition of the financial performance of PT BJTI, which is shown through the decreasing profitability ratio and interest coverage ratio, the company needs the most effective and efficient solution so that it can support its efforts in increasing sales and at the same time, not adding unnecessary burden to PT BJTI's financial performance. An analysis of several available alternatives has been carried out, and the best alternative has been obtained and believed to be beneficial not only for the company but also for the shareholders. The solution to the problem of PT BJTI is to do a combination of external financing through Debt and Equity with proportion of 35% and 65% – This alternative yield lowest capital cost, amounted 9.86% and overall improve PT BJTI`s financial performance. This alternative is able to solve the problems of PT BJTI's funding needs while still maintaining its healthy performance.