FINANCIAL PERFORMANCE EVALUATION OF INDONESIA STATEOWNED ENTERPRISES IN CONSTRUCTION INDUSTRY IN THE PERIOD OF 2014 – 3Q2020 (CASE STUDIES OF PT. WIJAYA KARYA TBK, PT. WASKITA KARYA TBK, PT. ADHI KARYA TBK, AND PT. PEMBANGUNAN PERUMAHAN TBK)

• Main Author: Nurfitriana, Annisa
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53201
• Institution: Institut Teknologi Bandung

Indonesia's most significant challenge today is to create an adequate infrastructure system along the islands to elevate livelihood and business competitiveness levels. The number of infrastructure construction projects has increased significantly from the beginning of Joko Widodo infrastructure agenda in 2014 until 2020. Each year, the government increases the infrastructure budget to create adequate infrastructure development to improve Indonesia's connectivity within the regions, intending to boost economic growth. Most infrastructure projects are given to state-owned enterprises in the construction industry. However, a sudden increase in projects today does not guarantee future workloads and performance. Therefore, companies' performance today is crucial. This research aims to assess four state-owned enterprises' financial performance and financial health conditions in the construction industry before the pandemic, from 2014 until 2019, and during the pandemic, third quarter of 2020. The four selected companies are PT Wijaya Karya Tbk (WIKA), PT Waskita Karya Tbk (WSKT), PT Adhi Karya Tbk (ADHI), and PT Pembangunan Perumahan Tbk (PTPP). The financial performance and financial health level assessment are based on the Decree of Ministry of Stated Owned Enterprises (SOEs) number iii KEP-100/MBU/2002 issued by the government. The data is collected from the companies' annual reports and financial reports for 2014 until the third quarter of 2020. There are eight financial ratios in four categories used in this research; 1. Profitability performances consist of return on equity (ROE) and return on investments (ROI) ratios; 2. The liquidity ratios consists of current ratio and cash ratio; 3. The activity ratio consists of collection period, inventory turnover, and total asset turnover ratios; 4. The solvency ratio consists of total equity to total asset ratio. The financial ratios will be analyzed compared using a combination of cross-section and time-series and will be scored. The score is used to categorize the companies' healthiness level. Due to the pandemics, the result of financial ratios analysis rank is different between six years before the pandemic and during the pandemic, except for the liquidity ratio. Based on the financial performance analysis from 2014 until 2019, WIKA has the best financial performance and is followed by PTPP, WSKT, and ADHI as the worst performer. However, in 2020, PTPP shows the best financial performance, followed by WIKA, ADHI, and WSKT, respectively. There are four parent companies chosen to be analyzed in this study. The four companies are the most well-known state-owned enterprises in the construction industry, which are PT Wijaya Karya Tbk (WIKA), PT Waskita Karya Tbk (WSKT), PT Adhi Karya Tbk (ADHI), and PT Pembangunan Perumahan (PTPP). The four companies have a similar range of revenue and similar business lines and projects. The results of the companies' health assessment based on rank; 1. WIKA's health level AA, A, A, A, A, AA, and B; 2. PTPP's health level A, AA, A, A, A, BBB, and B; 3. WSKT's health level A, A, A, A, A, BBB, and CCC; 4. ADHI's health level A, A, BBB, BBB, A, BBB, and B.