FINANCIAL IMPROVEMENT OF PT ADHI KARYA (PERSERO) TBK. TO COMPETE IN ASEAN CONSTRUCTION INDUSTRY

• Main Author: Nugraha Wibisana, Yudha
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72461
• Institution: Institut Teknologi Bandung

Construction industry plays a very important role in national economic growth in developing countries. Construction companies help developing countries to absorb workforce to decrease unemployment rate. Construction industry influenced almost all field of economics. Development of road, dam, irrigation system, housing and real estate, supporting facilities of healthcare and education, and other construction project is a physical basis that will be the infrastructure of other business opportunities in the efforts to conduct improvements of the standard of living. In Indonesia, one of the company in the field of construction is PT Adhi Karya (Persero) Tbk. Currently PT Adhi Karya (Persero) Tbk. is now registered as a state-owned enterprise under the Indonesian ministry of state-owned enterprise or Kementrian Badan Usaha Milik Negara Republik Indonesia. After decades of business activities that they have been through, ADHI has taken a significant part in the development of Indonesia. With that experience, currently ADHI has a new vision to become a leading company that active on construction sector in South-East Asia. In 2015, ASEAN economic communities (AEC) will start to enforced. The purpose of this program is to integrate economic activities among ASEAN country with policies to achieve a single market and production base, highly competitive economic region, a region of equitable economic development, and a region fully integrated into global economy. With the occurrence of this ASEAN collaboration, ADHI has to ensure their readiness of their company to compete in global market to achieve their vision. Current position of ADHI should be shown a conditioned state because of their vision that shown desire to compete in ASEAN level. One of the tools that could be use to assess companies performance is by the analysis of their financial report. Financial performance of PT Adhi Karya (Persero) Tbk shows good indication. Their liquidity always above 1.00 points, the profitability ratio shown tendency to incline each year, and for BUMN scoring, they scored above all ASEAN competitors. However there are some indicators that they should improve, especially their efficiency. PT Adhi Karya (Persero) Tbk need to increase their performance in collecting receivable since they take averagely 65 days to collect. Their efficiency in utilizing assets to generate revenue also needs improvement. Their growth on sales did not equal with their increase on assets. For debt analysis, PT Adhi Karya (Persero) Tbk is very low on risk, meaning that they financial leverage is also low and they could take some more debt to increase the amount of other people money to generate profit.