FINANCIAL STRATEGY TO STRENGTHENING THE HOLDING FUNCTION AT PT PUPUK INDONESIA (PERSERO)

• Main Author: Agung Firmansyah, Sigit
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/50066
• Institution: Institut Teknologi Bandung

PT Pupuk Indonesia (Persero) PTPI is one of the earliest state-owned holding companies formed by the government. The establishment of fertilizer SOE holding to increase efficiency and productivity, helping the government to carry out coordination and control functions, creating synergies, and integrating the direction of fertilizer industry development. The dynamics of the business world that is very fast and very competitive and the influence of the global economy on economic conditions in Indonesia confronts PTPI with various challenges in its efforts to maintain and further improve its performance going forward and strengthen its function as a holding company The purpose of this research is to answer the right financial strategy questions to strengthen the holding function further, and the value can be created through the financial strategy implemented by the holding company. To answer these research questions, the authors use an external analysis in the form of PEST analysis, porter five's force analysis, competitor analysis, and internal analysis in the form of VRIO analysis and financial analysis. The results of both external and internal analyses produce a SWOT and TOWS analysis. SWOT and TOWS Analysis produces the direction of the company's business transformation, which is the basis for preparing the main corporate strategies and key strategic initiatives to achieve the PTPI architecture in 2022. The Directorate of Finance determines the financial strategy in the field of funding, namely, joint borrowers/borrower co-borrower, PTPI bond issuance and NPA, and non-financing strategy, namely the joint insurance program. The financial strategy can support the achievement of the main corporate strategy by enhancing and strengthening the holding function, increasing efficiency, and encouraging the development of the non-subsidized fertilizer business and non-fertilizer products owned by PTPI. The implementation of the financial strategy from 2014 - 2019 helped create value (efficiency) for the corporation on a consolidated basis of Rp. 1.42 trillion.