FINANCIAL PERFORMANCE ANALYSIS BEFORE AND AFTER NEW TIN MARKET ESTABLISHMENT UNDER JFX, CASE STUDY OF PT. TIMAH FROM 2018 TO 2020

• Main Author: Hanum Salsabillah, Siti
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/57626
• Institution: Institut Teknologi Bandung

This study aims to evaluate the implications of the temporary closure (trading halt) of the tin market and the opening of a new Indonesian tin market, as well as the impact on the financial performance of PT Timah as the largest tin company in Indonesia. This study was motivated by the trading halt of the Indonesia Commodity and Derivative Exchange (ICDX) in 2018 due to tin theft cases, the establishment of a new tin market in Jakarta Future Exchange (JFX) and price gap in tin between Indonesian and world market. To determine the significance of this impact, financial ratio analysis of PT Timah in the period of 2018—2020 was carried out. This study divided into two periods. The ‘before’ PT Timah joined JFX period was from the first quarter (Q1) 2018 to the second quarter (Q2) of 2019, and the ‘after’ joining JFX period was from the third quarter (Q3) of 2019 to the second quarter (Q2) of 2020. This study also used a paired t-test to see the significance of differences in financial ratios after and before PT Timah joined both markets. The results in ratio analysis show an upward trend for solvency and activity performance, and downwards trends are shown for the liquidity and profitability performance. The ratio, which proved to be significantly different only found in the activity ratio. The joining of PT Timah in two Indonesian tin exchanges ICDX and JFX does not automatically improve the company’s performance. This study only discusses the performance of PT Timah based on its financial aspects, and further studies are needed to evaluate the company's performance from a broader perspective.