FINANCIAL PERFORMANCE ANALYSIS OF PT AGUNG PODOMORO LAND TBK RELATED TO THE CRISIS OF PROPERTY IN INDONESIA

• Main Author: Hanifauzia Sa'ad, Arannisa
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72297
• Institution: Institut Teknologi Bandung

The growth of property business started in 2010. This happened because of the higher demand by consumers that mainly from upper middle class citizens in buying and investing property. As the population growth of Indonesia was constantly increasing, their needs of residence, workspace, and retail mall were increased. The rapid growth of property industry reflected by the selling of residential property that rose up from quarter to quarter in 2013. This led the property companies increased the property rate as seeing the good trend in the market, but in year 2014, the rate of property was getting higher that made the market saturated and reach the stage of overvalued. This led 2015 as the worst year of property business. The rate of property was increasing that made the market property for both of upper and middle class was showed a declining trend. PT Agung Podomoro Land Tbk is one of the leading property companies in Indonesia which is highlighted for its superblock concept, which combining office, residence, and shopping center in one place. This research analyses the financial performance of property industry, which focus on PT Agung Podomoro Land Tbk as the 5th rank of Golden Developer from Indonesia Property Watch in 2014. The company compares to its big competitors in property industry such as PT Lippo Karawaci Tbk, PT Ciputra Development Tbk, PT Bumi Serpong Damai Tbk, and PT Pakuwon Jati Tbk. The data will be taken from year 2011 to year 2015. There are three main methods used in analyzing the performance, which are Time Series Analysis, Cross-Sectional Analysis, and Combined Analysis. Financial Ratios and DuPont System of Analysis will be use in Time Series Analysis and Cross Sectional Analysis. The combined analysis used to analyze the result of each Financial Ratios of PT Agung Podomoro Land Tbk compares to the industry average. Although PT Agung Podomoro Land Tbk was a market leader in developing middle-class apartment, the growth in market price of PT Agung Podomoro Land Tbk was underperformed compares to growth in market price of The Property, Real Estate, and Building Construction Index and Jakarta Composite Index (IHSG). This research assesses the financial performance of PT Agung Podomoro Land Tbk from 2011 to 2015 to find the root cause of the market price trend that underperformed towards the property industry also the IHSG. The result showed that the company was using more debt to finance the assets. Also, the company prioritized the company’s strength in liquidity and the assets that the company owned was not giving sufficient profit.