Title : Financial Performance Analysis and Financial Distress Prediction of Indonesia State-Owned Enterprises in The Construction Industry Listed on IDX Before and During Economic Crisis in the Covid-19 Pandemic Era (Period 2019 – 2021)

Vol 6 No 1 (2023): Volume 06 Issue 01 January 2023

Article Date Published : 10 January 2023 | Page No.: 158-180 | Google Scholar | Crossref doi for this article

Abstract :

The Covid-19 pandemic has brought an immense impact on Indonesia’s economy. Indonesia officially went into recession after the Central Statistics Agency (BPS) announced negative GDP growth for two consecutive quarters, namely in the second quarter (-5.32%) and the third quarter (-3.49%) of 2020. Indonesia’s contracted economy has caused depression in many Indonesian sectors. The results of a survey by BPS in 2020 noted that the construction sector was recorded as one of the sectors that experienced the most decline in revenue, which was 87.94%. This study aims to measure the financial performance and health condition of Indonesian construction SOEs listed on IDX namely ADHI, PTPP, WSKT, and WIKA based on the decree of the Ministry of SOEs no. KEP-100/MBU/2002 as well as the financial distress prediction (bankruptcy potential) by using the Altman Z-Score method for the period 2019 to 2021. The result of the financial health rank level of each company from 2019 to 2021: ADHI (BBB, CCC, and B), PTPP (BBB, B, and BB), WSKT (BB, CC, and B), and WIKA (A, B, and B) respectively. According to the Altman Z-score result, all companies experienced declining in the total Altman Z-score results from 2019 to 2021 and were interpreted as being in a state of financial distress, except for WSKT. This study will complete previous research with a different approach and focus that can give a more equipped view regarding the impact of Covid-19 on the construction industry in Indonesia.

Keywords :

Bankruptcy potential, financial distress, Financial performance, Financial Ratio Analysis, Indonesian state-owned enterprises in the construction sector.

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Author's Affiliation

   Rachmadiosi Muhammad
School of Business and Management, Institut Teknologi Bandung, Indonesia

   Raden Aswin Rahadi
School of Business and Management, Institut Teknologi Bandung, Indonesia

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Rachmadiosi Muhammad, Raden Aswin Rahadi, 2023

This work is licenced under a Creative Commons Attribution 4.0 International License.

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Financial Performance Analysis and Financial Distress Prediction of Indonesia State-Owned Enterprises in The Construction Industry Listed on IDX Before and During Economic Crisis in the Covid-19 Pandemic Era (Period 2019 – 2021). Rachmadiosi Muhammad, Raden Aswin Rahadi , 6(1), 158-180. Retrieved from https://ijcsrr.org/single-view/?id=8552&pid=8479

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