PROFITABILITY IMPROVEMENT BUSSINESS STRATEGY THROUGH BACKWARD AND FORWARD INTEGRATION (CASE STUDY: PT BUANA TUNGGAL SARANA INFRATRUCTURE, WEST JAVA)

• Main Author: Yaumil Adha, Nesha
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/64591
• Institution: Institut Teknologi Bandung

The mining business is one of the sectors that makes a major contribution to GDP in Indonesia which indirectly also has an impact on improving people's welfare. In Indonesia, the mining and mining sector in Q1 2020 contributed 6.82 percent of total GDP (BPS, 2020). West Java Province, especially in Subang Regency, has a large andesite mining potential. Andesite is a rock that is often used for infrastructure development, such as bridges, roads, irrigation, airports, ports, buildings, and so on. PT. Buana Tunggal Sarana Infrastruktur (BTSI) is an andesite mining company in the Subang district, West Java, Indonesia. PT BTSI is a company that is quite operationally and financially healthy from its inception to mid-2020, but due to poor company management and ineffective finances, PT BTSI has experienced a decline in profits and lost some of the company's vital assets. In this study, a business strategy is developed to increase profitability through backward and forward integration. This research focuses on the company's financial analysis, the addition of production assets, and the analysis of business profitability ratios. In addition, this study also discusses alternative business financing in the form of financing through leasing to support the implementation of the backward and forward integration strategy at PT BTSI. Based on the profitability ratio analysis that has been carried out, it is shown that there is an increase in profitability at PT BTSI by 20% every year and a significant increase in the liquidity ratio from 25%.