WORKING CAPITAL FINANCING STRATEGY FOR A GROWING MARKET OF SAND AND SPLIT STONE (CASE STUDY: PT. BUANA TUNGGAL SARANA INFRASTRUKTUR)

• Main Author: Arif, Maitsa
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/64539
• Institution: Institut Teknologi Bandung

The development of the road construction industry in Indonesia is very massive related to the provision of infrastructure to support economic activities, one of the materials for road construction is sand and split stone. PT. Buana Tunggal Sarana Infrastruktur (BTSI) is a mining company that produces sand and split stone located in Subang Regency, West Java. Currently PT. BTSI has short of working capital and debt, due to past frauds, and caused the company to be blacklisted in the banking industry due to unpaid debts. PT. Abipraya is one of the potential customers for PT. BTSI, but as a SOE, they will only pay for their orders in 90 days. In this study, research was conducted on the working capital financing strategy of PT. BTSI to meet working capital needs in order to increase sales and fulfill orders from PT. Abipraya. In this study, there are five proposed alternative financing strategies submitted to PT. BTSI, namely Revolving Capital Facility, Invoice Discounting, Account Receivables Financing (Factoring), Purchase Order Financing, and Customer Advances. Based on the five alternative proposals, Account Receivables Financing (Factoring) is the most applicable working capital financing strategy with modifications to Two-Step Factoring, by involving other company, PT. ABC to do the financing. The author makes a projection of the company's financial statements for the next 5 years. This sales projection results in a profitability of 14.9 percent in 2022, 15.8 percent in 2023, and 17 percent from 2024 to 2026. By using this working capital financing strategy, it is expected that PT. BTSI can pay off debts that are still in arrears in the third or fifth year of this sales projection, so that PT. BTSI can apply for a loan for working capital, that could maximize production in order to meet market demand with the loan.