CREDIT RISK ANALYSIS OF INDONESIAN NICKEL INDUSTRY BUSINESS PERFORMANCE FROM BANK FINANCING PERSPECTIVES

• Main Author: Setiawati, Linda
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/86861
• Institution: Institut Teknologi Bandung

At the beginning of 2023 there was a demand increase of bank loan facilities for the purchase of new nickel transportation boats (tugboats and barges) at PT Bank Negara Indonesia (Persero), Tbk Batam Commercial Business Centre. Loan repayment will be from mining companies’ payment to shipping companies, therefore credit risk analysis of Indonesia nickel industry as the source of loan repayment is urgently needed. The analysis is conducted including business environment to financial condition of selected Indonesian public-listed nickel companies to represent the nickel industry. Research found that market risk of nickel is highly affected by China as the largest nickel buyer to fulfil demand of its stainless-steel industry and growing EV industry. Commodity risk analysis shows nickel price annual volatility in the period 2018 to 2023 has reach 0.50 or 50%. Stress test resulted that if nickel price reached USD 13.011,50/ton will cause companies unable to repay their debt obligation. From financial risk analysis shows in 2022 industry average Profit Margin has reached 15,97%, and decent financial ratio including CR (2.7 times), DER (115%), and DSCR (35.64 times).