DETERMINING OPTIMAL CAPITAL STRUCTURE (CASE STUDY : PT ELNUSA TBK)

• Main Author: Junaedi, Achmad
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/70189
• Institution: Institut Teknologi Bandung

PT Elnusa Tbk (ELSA) as a subsidiary of PT Pertamina Hulu Energi (PHE) would like to contribute and support in some projects of PT Pertamina (Persero) to achieve national energy security programs in achieving production target for one million barrel oil per day and lifting twelve billion cubic gas feet per day, and as long as that would like to be a champion in energy services company in Indonesia with 700 billion rupiahs profit in 2026. Along with growth in total asset and revenue, the structure of capital of ELSA is facing several financial challenges. If PT Elnusa Tbk want to support PT Pertamina (Persero) and its sub-holding in program or project participation in achieving national energy security, it need to find the best source of financing to fulfil the funding needs. This study is intent to analyse what is the optimum capital structure of PT Elnusa Tbk and to analyse whether it has already implemented well their financial strategy and policy to meet this optimum capital structure in regard to supporting sub-holding PT Pertamina Hulu Energi (PHE) programs. In this research author analyze and explore the issue into two frameworks analysis such as internal and external factors. The internal factors explore financial ratio and cost of capital, then external factors explore macroeconomic condition by using PESTEL approach and industrial analysis by using Porter’s Five. For last six years, the capital structure of PT Elnusa Tbk (ELSA) was not optimum yet. In 2021, it is under leverage since the debt to equity ratio is only 29.96% where from simulation show that the best optimum shall be 65% DER. Several strategies for the firm shall be set to obtain their optimum capital structure and firm value.