#TITLE_ALTERNATIVE#

• Main Author: Nurhadi (NIM 19004099), Harry
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/6197
• Institution: Institut Teknologi Bandung

ABSTRACT: <br /> <br /> <br /> <br /> Capital Structure is one of the main factors in a company and a good capital mix between debt and equity will give company bigger opportunity in expanding business. Capital Structure is defined as The mix of long-term debt and equity maintained by the firm (Gitman, 2006: 538). In a company, the Optimal Capital Structure could be reached by trading off the benefit of borrowing against the cost. A company with an optimal capital structure is expected to reach the maximum firm value. Perusahaan Listrik Negara or PLN, compared to other company has a main distinction which it has a monopolistic function as a state owned company or BUMN to produce and supply electricity for Indonesian Citizens. Based on Peraturan Pemerintah Number 17 year of 1990, PLN was stated as the regulator of electricity business. But, in 1992, Indonesian Government gave the chance to private sectors to enter the electricity providing business. On June 1994, the status of PLN was changed from Perusahaan Umum to Perusahaan Perseroan. And also based on Instruksi Presiden No. 15 Tahun 1998, there was a transfer of management and share ownership of Perusahaan Perseroan(Persero) and Perseroan Terbatas from Indonesian Republic to the Minister of State Owned Company (Menteri Negara Pemberdayaan BUMN). This final project is mainly about optimal capital structure analysis at PT PLN from year 2004-2006.