Author:
Wiwiek Mardawiyah Daryanto
Affiliation:
Sekolah Tinggi Manajemen IPMI, Indonesia
Keyword(s):
Financial Performance, Financial Ratios, SOEs, VIWI, Aviation.
Abstract:
Visit Wonderful Indonesia (VIWI) 2018 is the government program with targets of 17 million tourists and 18 destinations across Indonesia. An excellent performance of State-Owned Enterprises (SOEs) under aviation is mandatory. This study aims to measure the financial health conditions of the two SOEs under aviation i.e PT Angkasa Pura I (AP I) and PT Angkasa Pura II (AP II) in 2011-2015. The Decree No.KEP-100/MBU/2002 of Indonesia Ministry of SOEs on June 2002 provides the mandatory of measuring and rating the financial health condition of SOEs. The results of eight financial ratios investigating; 1) return on equity, 2) return on investment, 3) cash ratio, 4) current ratio, 5) collection period, 6) inventory turnover, 7) total asset turnover, 8) total equity to total asset, then to be validated by the said Ministry of SOEs Decree to conclude the yearly financial health conditions of each SOEs The result shows that in 2011 - 2015, both SOEs achieved healthy financial condition levels,
although AP II was better in performance than AP I as shown in the rating as follows; AP I (BBB, BBB, BBB, A, and A); and AP II (AA, AA, A, A, and A). However, AP I was successfully achieved the highest levels in 2014 and 2015, from B to A levels. This study has added the knowledge in the financial literature. It also gives a strong insight for managers in aviation industry about the financial performance. Therefore, the managers could make decisions to increase both market share and profitability.
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