THE IMPACT OF NATIONAL ECONOMIC RECOVERY PROGRAM IN INDONESIA ON THE PROPERTY AND REAL ESTATE SECTOR’S FIRM PERFORMANCE AND DISTRESS

• Main Author: Syamil Falahuddin, Muhammad
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/66995
• Institution: Institut Teknologi Bandung

The COVID-19 Pandemic which started as a health issue affects the economy as the government tries to limit activities in multiple business sectors. One of the sectors that are severely affected by economic recession due to the COVID-19 Pandemic is the property and real estate, which experience a significant decline in profitability and a potential solvency issue. This sector needs to sustain itself as it has a multiplier effect on the economy. To deal with this situation, the Government of Indonesia has issued the National Economic Recovery Program (Pemulihan Ekonomi Nasional - PEN). This research aimed to examine the financial impact of the PEN program on the financial sustainability of the firm in the property and real estate sector, as measured in financial performance and financial distress. Financial performance is measured through ratio analysis, including liquidity, activity, solvency, and profitability ratios. Financial distress is measured using Altman Z-Score. The result shows that the PEN program has a significant effect on the net profit margin and Altman Z-Score. Keywords: Financial Performance, Financial Distress, National Economic Recovery Program