Akila Badzlina Putri1*, Ana Noveria2,
Oktofa Yudha Sudrajad3
School of Business and Management, Bandung Institute
of Technology, Indonesia1,2,3
Email: akila_putri@sbm-itb.ac.id1*,
ana.noveria@sbm-itb.ac.id2, oktofa@sbm-itb.ac.id3
|
KEYWORDS |
ABSTRACT |
|
Project
Improvement, Financial Stability, Bankruptcy Risk |
This research
analyzes and discusses the financial health and bankruptcy risk of PT Waskita
Karya (Persero) Tbk. using secondary financial data from the company's annual
reports covering the period from 2019 to 2023. The study focuses on three
critical operational metrics: collection period, days in inventory, and total
asset turnover. The analysis employs various methods including the Altman
Z-score, Ohlson O-Score, Grover, Springate, and Zmijewski models, alongside
financial ratio analysis based on the Decree of the Minister of BUMN
KEP-100/MBU/2002, to assess financial performance and bankruptcy risks. The
findings reveal a decline in profitability and liquidity ratios, coupled with
an increase in activity ratios during the first year of the pandemic (2020).
Moreover, the consistent financial bankruptcy forecasts indicate a high risk
of insolvency, highlighting the potential dangers associated with
government-awarded projects and funding facilities such as Supply Chain
Facilities (SCF). This research contributes to the existing literature by
providing a deeper understanding of how the management of large projects by
state-owned enterprises can influence their financial condition and business
sustainability, offering critical insights for both practitioners and
policymakers. |
|
DOI: 10.58860/ijsh.v3i8.225 |
|
Corresponding Author: Akila
Badzlina Putri*
Email: akila_putri@sbm-itb.ac.id
INTRODUCTION
PT Waskita Karya (Persero) Tbk, a leading
state-owned enterprise in Indonesia, has played a pivotal role in the nation's
infrastructure development. As the company undertakes a diverse and expansive
portfolio of strategic projects, it significantly contributes to Indonesia's
infrastructure landscape
From 2019 to 2023, PT Waskita Karya's total
assets decreased significantly from IDR 122.59 trillion to IDR 95.60 trillion,
while total liabilities saw a less steep decline from IDR 93.47 trillion to IDR
83.99 trillion. The company's equity, however, experienced a sharp drop from
IDR 29.12 trillion in 2019 to IDR 11.60 trillion in 2023, indicating a
weakening financial position. Simultaneously, the debt-to-equity ratio (DER)
surged from 3.21 in 2019 to 7.24 in 2023, reflecting an increase in financial
leverage. The debt-to-asset ratio (DAR) remained relatively stable, ranging
between 0.76 and 0.88.
Revenue for PT Waskita Karya declined
sharply, from IDR 31.39 trillion in 2019 to IDR 10.95 trillion in 2023. The
company's debt represented a significant portion of the total debt recorded by
BUMN Karya on the IDX as of the first quarter of 2024, amounting to IDR 81.57
trillion, or 38.82% of the total BUMN Karya debt of IDR 210.1 trillion. These
financial trends raise concerns about the company’s overall financial health
and potential bankruptcy risk
This research aims to analyze the impact of
increasing government infrastructure projects on the financial stability and
bankruptcy risk of PT Waskita Karya (Persero) Tbk. By utilizing the Altman
Z-score, Grover, Springate, and Zmijewski methods, along with financial ratio
analysis and the Decree of the Minister of BUMN KEP-100/MBU/2002, the study
will evaluate the company's financial performance from 2019 to 2023. The goal
is to identify trends and indicators of potential financial distress, offering
insights for stakeholders to formulate better risk management and
decision-making strategies
The 2024 increase in the government’s
infrastructure budget is intended to advance development goals from 2023,
focusing on accelerating infrastructure development that supports economic
transformation and new growth centers. The government aims to provide essential
infrastructure, including safe and affordable housing, clean drinking water,
and adequate sanitation, to ensure a healthy and productive community life
METHOD
This research employs quantitative analysis to
assess the performance and maintenance effectiveness of PT Waskita's equipment,
drawing on standards established by the Decree of the Minister of BUMN
KEP-100/MBU/2002. Utilizing a methodology similar to Dinarjito (2018), which
analyzed the financial performance of construction companies in the context of
government-led infrastructure development, this study examines how maintenance
practices impact Overall Equipment Effectiveness (OEE). Bankruptcy prediction
methods such as the Altman Z-Score, Ohlson O-Score, Zmijewski, and Springate
models are applied to secondary financial data from annual reports covering
2019 to 2023. By integrating these financial analysis methods with a detailed
examination of equipment performance, this research provides a comprehensive
perspective aimed at enhancing predictive insights and supporting strategies to
mitigate potential financial and operational risks.
RESULT AND DISCUSSION
Table 1.
Financial Ratios of PT Waskita Karya 2019 - 203l
|
Financial Ratios |
2019 |
2020 |
2021 |
2022 |
2023 |
|
Profitability
Ratio |
|||||
|
ROE Ratio (%) |
3,3 |
-81,04 |
-11,11 |
-12,00 |
-35,04 |
|
ROI Ratio (%) |
2,11 |
-16,41 |
-1,61 |
-1,52 |
-4,64 |
|
Liquidity
Ratio |
|||||
|
Cash Ratio (%) |
20,58 |
2,99 |
48,40 |
42,98 |
35,23 |
|
Current Ratio
(%) |
108,92 |
59,21 |
156,00 |
158,20 |
99,49 |
|
Activity
Ratio |
|||||
|
Collection
Period (days) |
185,07 |
265,69 |
341,60 |
256,31 |
150,72 |
|
Days in Inventory (days) |
51,61 |
85,79 |
122,11 |
103,02 |
141,20 |
|
Total Asset
Turnover (%) |
40,47 |
31,01 |
16,02 |
19,85 |
15,06 |
|
Leverage
Ratio |
|||||
|
Total Equity to
Total Asset Ratio (%) |
23,75 |
11,34 |
14,92 |
14,50 |
12,14 |
Return on Equity (ROE) and Return on Investment (ROI)
for PT Waskita Karya from 2019 to 2023. In 2019, PT Waskita Karya’s ROE was
3,31%, and its ROI was 2,11%. Both metrics experienced a substantial decline in
2020, with ROE plummeting to -81,04% and ROI decreasing to -16,41%. The
significant drop indicates a severe deterioration in profitability, likely
influenced by the adverse effects of the COVID-19 pandemic. In 2021, both ROE
and ROI showed an improvement. The ROE rose to -11,11%, and the ROI improved to
-1,61%, although they remained negative, indicating that the company was still
facing financial challenges. For the year 2022, the ROE slightly declined to
-12,00% while the ROI marginally improved to -1,52%, reflecting a period of
relative stability compared to the previous year’s drastic changes. In 2023, PT
Waskita Karya’s profitability metrics worsened again. The ROE decreased
significantly to -35,04%, and the ROI fell to -4,64%. An examination of the
annual report notes reveals that in 2023, the company recorded revenue of IDR
10.954,69 billion, a decrease of 28,41% or equivalent to IDR 4.438,18 billion
compared to the 2022 figure of IDR 15.302,87 billion. The trends in the
company’s cash Ratio and current Ratio from 2019 to 2023. These ratios provide
insights into Waskita Karya’s ability to meet its current liabilities. In 2019,
the cash ratio was 20,58%, and the current ratio was 108,92%. The cash ratio
measures the extent to which cash and cash equivalents cover current
liabilities with all current assets
In 2020, the cash ratio dramatically decreased to
2,99%, indicating a significant decline in cash reserves relative to current
liabilities. Concurrently, the current ratio dropped to 59,21 %, reflecting a
decreased ability to cover current liabilities with current assets. In 2021,
there was an improvement in both ratio ratios. The cash ratio increased to
48,40%, suggesting an enhancement in cash reserves. The current ratio rose
substantially to 156,00%, indicating the ability to cover current liabilities
with current assets. In 2022, the cash ratio slightly decreased to 42,98% while
the current ratio further improved to 158,20%, maintaining a strong liquidity
position. However, in 2023, both ratios experienced a decline. The cash ratio
fell to 35,23%, and the current ratio decreased to 99,49%, signaling a
reduction in liquidity. Based on the annual report examination, the realization
of cash and cash equivalents as of December 31, 2023, amounted to IDR 1.340,06
billion, representing a decrease of 39,67% or equivalent to IDR 881,31 billion
compared to IDR 8.945,72 billion in 2022. This decline was primarily due to a
reduction in bank balances by IDR 548,30 billion. Furthermore, as of December
31, 2023, Other Short-Term Liabilities in current liabilities were recorded at
IDR 2.229,20 billion, an increase of 175,06% or equivalent to IDR 1.418,74
billion compared to IDR 810,46 billion in 2022. This increase was due to the
debt maturing to the Ministry of Public Works and Housing amounting to IDR
1.293,55 billion.
Detailed analysis of PT Waskita Karya’s financial
performance from 2019 to 2023, focusing on three critical operational metrics:
collection period, days in inventory, and total asset turnover. The collection
period, depicted in red bars, represents the average number of days it takes
for the company to collect its receivables
The total asset turnover, illustrated by the yellow
line, indicates how efficiently the company utilizes its assets to generate
sales revenue. This ratio shows a consistent decline from 40,47% in 2019 to
15,06% in 2023, reflecting a decrease in the efficiency of asset utilization. A
drop in sales could directly lead to a lower total asset turnover ratio. When
revenue declines, the efficiency indicated by this ratio diminishes because the
company is generating less revenue per rupiah of assets it owns
However, this figure experienced a sharp drop to
11,34% in 2020, suggesting a significant increase in debt financing or a
decrease in equity. Following this substantial decrease, the leverage ratio
showed a slight recovery in 2021, rising to 14,92%. This increase indicates a
marginal improvement in the equity financing of the company’s assets. In 2022,
the leverage ratio remained relatively stable at 14,50%, showing little change
from the previous year.
By 2023, the leverage ratio further decreased to
12,14%, suggesting that PT Waskita Karya increasingly financed its assets
through debt rather than equity, potentially raising concerns about the
company’s financial leverage and risk profile. An examination of the annual
report notes reveals that as of December 31, 202, total equity amounted to IDR
11.601,51, reflecting a decline of 18,56% or IDR 2.643,17 billion compared to
the previous year’s total of IDR 14.244,69 billion. This reduction in equity
was primarily attributable to the net loss incurred during the year.
PT Waskita Karya’s financial performance from 2019 to
2023 shows a sharp decline in profitability. Liquidity ratios fluctuated, with
noticeable changes in both cash and current ratios. Activity ratios indicated
improvements in the collection period but challenges with inventory management
and declining asset turnover
PT Waskita Karya's financial performance from 2019 to
2023 shows a quite sharp decline in profitability. Liquidity ratios fluctuate,
with noticeable changes in the cash ratio and current ratio. Activity ratios
showed improvement in the collection period, but there were challenges in
inventory management and decreased asset turnover
Table 2.
Financial
Health Rank Assessment of PT Waskita Karya 2019 – 2023
|
|
2019 |
2020 |
2021 |
2022 |
2023 |
|
Total Weight (%) |
45,21 |
21,00 |
31,43 |
41,43 |
33,57 |
|
Health Rank |
BB |
CCC |
B |
BB |
B |
|
Health Status |
Less Healthy |
Unhealthy |
Less Healthy |
Less Healthy |
Less Healthy |
The total weights for PT Waskita Karya from 2019 to 2023 were 45,21%,
21,00%, 31,43%, 41,43%, and 33,57% respectively. These percentages indicate the
relative financial health of the company during these years. Based on these
total weight results, PT Waskita Karya’s financial health ranks for 2019, 2020,
2021, 2020, and 2023 can be categorized as BB, CCC, B, BB, and B, respectively.
Correspondingly the health statuses can be classified as less healthy,
unhealthy, less healthy, less healthy, and less healthy for the years 2019,
2020, 2021, 2022, and 2023, in that order.
PT Waskita Karya’s financial health from 2019 to 2023 showed significant
variability. The company’s overall financial status fluctuated, with rankings
indicating a shift between “less healthy” and “unhealthy” statuses.
Specifically, PT Waskita Karya’s financial da health was rated BB in 2019,
dropped to CCC in 2020, improved to B in 2021, rose back to BB in 2022, and
settled at B in 2023. This pattern reflects a turbulent period with varying
degrees of financial stability over the five years.
Table3.
Bankruptcy
Prediction of PT Waskita Karya 2019 – 2023
|
Method |
2019 |
2020 |
2021 |
2022 |
2023 |
|
|
Altman
Z-Score |
Score |
0,769 |
-1,694 |
0,860 |
0,564 |
-0,626 |
|
Interpretation |
Distress Zone |
Distress Zone |
Distress Zone |
Distress Zone |
Distress Zone |
|
|
Ohlson
O-Score |
Score |
0,053 |
0,542 |
0,255 |
0,270 |
0,095 |
|
Interpretation |
Distress Zone |
Distress Zone |
Distress Zone |
Distress Zone |
Distress Zone |
|
|
Zmijewski |
Score |
0,006 |
1,165 |
0,618 |
0,645 |
0,896 |
|
Interpretation |
Distress Zone |
Distress Zone |
Distress Zone |
Distress Zone |
Distress Zone |
|
|
Springate |
Score |
0,177 |
-0,547 |
0,100 |
0,087 |
-0,201 |
|
Interpretation |
Distress Zone |
Distress Zone |
Distress Zone |
Distress Zone |
Distress Zone |
|
The financial health and insolvency risks of these companies are
depicted differently by each five-year technique. In every method for 2019 –
2023, PT Waskita Karya is in the “Distress Zone”, threatening bankruptcy. The
methods show a continual distress trend and diverse financial instability. The
bankruptcy prediction results for PT Waskita Karya using the Altman Z-Score
method from 2019 to 2023. Over these five years, the analysis indicates that PT
Waskita Karya consistently fell within the Distress Zone, with a fluctuating
Altman Z-Score. In 2019, the Altman Z-Score was 0,769, which is below the Grey
Zone threshold (<1,1). In 2020, there was a sharp decline in the Altman
Z-Score to -1,694, primarily due to negative values in variables X1, X2, and
X3.
The analysis reveals that a 96,12% decrease primarily caused the
negative value of X1 in 2020 in Joint Venture Receivables, equivalent to IDR
3.174,33 billion. Additionally, there were declines in cash and cash
equivalents, other current receivables – net, inventories, gross receivables
from services users – current portion, and prepaid taxes. Cash and cash
equivalents 2020 amounted to IDR 1.213,44 billion, a significant decrease of
86,89% or IDR 8.044,87 billion compared to IDR 9.258,31 billion in 2019.
This decline was largely due to the repayment of bank loans, bond
repayments, financial charges, and the settlement of medium-term notes
In 2021, the X1 variable turned positive again. This improvement was
primarily due to a substantial increase in time deposits by IDR 6.922,50
billion, equivalent to 20.360,29%, and a significant rise in bank balances by
IDR 5.027,78 billion, equivalent to 426,98%. These increases stemmed from
additional paid-in capital through right-issue transactions amounting to IDR
7.900,00 billion in 2021. Additionally, by the end of 2021, there was an
increase in cash of IDR 2,05 billion or 106,87% compared to the previous year.
The Altman Z-Score in 2021 increased to 0,860, although it remained within the
Distress Zone.
Subsequently, PT Waskita Karya’s Altman Z-Score in 2022 remained
relatively stable at 0,564, indicating no significant decline. However, in
2023, the company experienced a sharp decrease, similar to the situation during
the 2020 pandemic, with the score dropping to -0,626. This decline was
primarily due to a significant reduction in the X1 variable.
As of December 31, 2023, Other Current Receivables were recorded at IDR
1.022,16 billion, reflecting a decrease of 85,74% or IDR 6.144,49 billion
compared to IDR 7.166,65 billion in 2022. This reduction was due to the
reclassification of other current receivables to PT Kresna Kusuma Dyandra Marga
and PT Cimanggis Cibitung Tollways, totalling IDR 6.851,95 billion, which were
reclassified as non-current receivables. Furthermore, the negative values in X2
and X3 were driven by a decline in revenue from construction services, property
sales, and other infrastructure sales, which fell by 35,66%, 21,56%, and 41,35%,
respectively.
Over the five years from 2019 to 2023, PT Waskita Karya consistently
remained in the Distress Zone, according to Ohlson O-Score analysis. Despite
some fluctuations, key financial variables such as SIZE, TLTA, WCTA, NITA,
FUTL, and CHIN reflected persistent challenges in asset management,
profitability, and operational efficiency. The recurring negative values in
variables like NITA, FUTL, and CHIN highlighted issues with net income,
operational funds, and net income changes, suggesting a continued high risk of
financial instability and potential bankruptcy.
In 2019, PT Waskita Karya’s O-Score was -2,981, placing the company in
the Distress Zone. Key contributing factors included relatively high SIZE
(5,635) and TLTA (4,598), indicating substantial total assets and liabilities
relative to total assets. The negative value of WCTA (0,047) and the
significant negative influence of NITA (0,019) and FUTL (0,006) suggested poor
working capital management and profitability. The CHIN variable (0,521) also
indicated substantial changes in net income, contributing to the distress
status.
In 2020, the O-Score improved to 0,169, yet PT Waskita Karya remained in
the Distress Zone. While the SIZE (5,601) and TLTA (5,346) ratios slightly
decreased, WCTA dropped significantly to -0,281, highlighting worsening working
capital conditions. NITA (-0,218) and FUTL (-0,190) also continued to reflect
negative net income and operational fund issues. The introduction of the INTWO
variable (0,285) and persistent negative values in CHIN (-0,642) underscored
ongoing profitability challenges.
By 2021, the O-Score slightly declined to -0,107, keeping PT Waskita
Karya in the Distress Zone. Although SIZE (5,606) remained stable, TLTA (5,130)
decreased, indicating some reduction in liabilities relative to assets. WCTA
improved to 0,211, showing better working capital management, but NITA (-0,044)
and FUTL (-0,044) stayed negative relative to continued profitability and
operational challenges. The persistent negative INTWO (0,285) and a less
negative CHIN (-0,521) showed some improvement in net income trends.
In 2022, the O-Score marginally improved to -0,995, with PT Waskita
Karya still in the Distress Zone. SIZE (5,597) and TLTA (5,156) ratios remained
relatively stable. WCTA (0,179) and NITA (-0,051) showed slight improvements,
indicating better-working capital and reduced negative net income. However,
FUTL (-0,042) remained negative, indicating ongoing operational fund issues.
The INTWO (0,285) and CHIN (-0,521) variables highlighted persistent negative
profitability trends.
In 2023, the Ohlson O-Score deteriorated significantly to -2,255,
reinforcing the company’s position in the Distress Zone. SIZE (5,592) and TLTA
(5,298) ratios remained stable, but WCTA (-0,002) turned negative again,
showing declining working capital conditions. NITA (-0,094) and FUTL (-0,093)
continued to reflect poor profitability and operational fund management. The
persistent negative INTWO (0,285) and CHIN (-0,521) variables indicated ongoing
negative net income trends.
The Zmijewski Score analysis for PT Waskita Karya from 2019 to 2023
detailing financial ratios used to predict the likelihood of corporate
bankruptcy. In 2019, PT Waskita Karya’s Zmijewski Score was 0,006, placing the
company in the Distress Zone. The X1 ratio indicated positive net income, while
the X2 ratio suggested high liabilities, and the X3 ratio showed adequate
current assets.
In 2020, the Zmijewski Score increased significantly to 1,165, with a
drastic drop in X1 reflecting substantial net income loss, an increase in
liabilities (X2), and a decline in current assets (X3). In 2021, the score
improved to 0,618 but still indicated distress, with X1 remaining negative, a
slight reduction in X2, and some improvement in X3. In 2022, the score
marginally increased to 0,645, with ongoing net income challenges and stable
liabilities. In 2023, the score further improved to 0,896, yet PT Waskita Karya
remained in distress due to a further reduction in net income and a slight
increase in liabilities.
In 2019, PT Waskita Karya’s Springate Score was 0,177, placing the
company in the Distress Zone. The following year, 2020, saw a significant
decline in the score to -0,547, with
negative values in X1, X2, and X3 contributing to the poor performance and
maintaining the company in the Distress Zone. In 2021, the Springate Score
improved to 0,100, indicating some recovery but still within the Distress Zone
due to continuing negative values in X2 and X3. The score continues to be
negative values in X2 and X3. The score remained relatively stable in 2022 at
0,087, yet the company persisted in the Distress Zone due to ongoing challenges
in profitability and liquidity.
By 2023, the score decreased to -0,201, driven by negative X1, X2, and
X3, reflecting persistent financial difficulties. The analysis consistently
places PT Waskita Karya in the Distress Zone over the five years, highlighting
significant financial instability. Based on the analysis, it has been
determined that the financial health of indPT Waskita Karya has declined
according to the assessment criteria outlined in the Ministry of SOE Regulation
No. KEP-100/MBU/2002. Furthermore, the Altman Z-Score, identified as the most
effective calculation model in this study, indicates that all four companies
exhibit a potential risk of bankruptcy. The following solutions are provided by
the author, referencing the Ishikawa framework and addressing the identified
issues in each segment of the analysis:
1.
Prevention and Mitigation of
Corruption in The Management of the State Budget
Reflecting
on the major corruption issues at PT Waskita Karya (Persero) Tbk, which
implicated several members of its Board of Directors (BOD), it is evident that
government-awarded projects and government-provided funding facilities (e.g.
Supply Chain Facilities/SCF) are closely associated with the risk of power
abuse. Therefore, the author examines Supreme Court Decision Number:
6/Pid.Sus-TPK/2024/PT.DKI to offer solutions for addressing such violations:
2.
Fictitious Goods/Services
Expenditure
The
expenditure for fictitious goods/services is conducted by making purchases for
goods/services intended for a specific unit’s activities that do not exist.
3.
Construction Design Issues
and Preventive Measures
The
construction design does not accurately reflect the actual field conditions,
which can lead to changes in the completion schedule, as well as in contract
volume and pricing.
4.
Inflated Procurement Plans
The
procurement plans have been “inflated (marked up)” primarily in terms of costs
and/or directed towards the interests of specific products or bid winners.
Solutions to the Company’s
Liquidity Issues
PT Waskita Karya's
liquidity challenges in 2023 are characterized by a significant decline in
current assets, which are crucial for covering current liabilities. The
substantial decrease in current assets implies a reduced ability to meet
immediate financial obligations, thereby exacerbating liquidity pressures
1.
Improvement of The
Subsidiary’s Financial Fundamentals
As a
holding company, the financial health of its subsidiaries directly impacts the
stability of the parent company. In 2023, PT Waskita Karya experienced a
significant decrease in its current assets, amounting to IDR 6.851,95 billion,
due to the reclassification of current receivables to PT Kresna Kusuma Dyandra
Marga (KKDM) and PT Cimanggis Cibitung Tollways (CCT) as non-current
receivables. This decision, prompted by the approval of increased amounts and
extended terms of debt for these two companies, has eroded the company’s
liquidity. Furthermore, Waskita Karya has incurred losses from the joint
venture, exacerbating its financial strain.
2.
Solutions of Prolonged Legal
Processes and Claim Rejections
The company should implement several strategic
solutions.
a.
Enhancing internal claim
management practices is crucial, including stricter documentation, regular
audits, and improved communication with clients to ensure all contractual
obligations are met.
b.
Developing stronger
relationships with clients through transparent and proactive engagement can
help prevent disputes and facilitate quicker resolution.
c.
Leveraging financial
instruments such as insurance for project risks and exploring options like
factoring receivables can improve liquidity and reduce the financial impact of
rejected claims.
3.
Right Issue
To improve
liquidity and secure additional capital for meeting current obligations and
completing ongoing projects, the company should consider implementing the right
issue as an alternative to short-term loans
a.
Enhancing Operational
Efficiency
Fluctuations in the Earning Before Income Tax (EBIT) indicate
inconsistent operational performance. To address this, it is crucial to enhance
operational efficiency by eliminating unnecessary costs and optimizing asset
utilization. This involves regular maintenance and effective use of assets,
leveraging data analytics for real-time insights, and training employees with
the latest skills
b.
Cost Reduction Strategy
Through Internal Audit
The audit will be systematic and data-driven, initially reviewing
all operating expenses and categorizing them into fixed and variable costs.
This will help identify areas with the most significant potential for cost
reduction
c.
Debt Restructuring
Debt restructuring is a strategic maneuver aimed at BUMN Karya's
financial stability and operational flexibility. By renegotiating the terms of
existing debt obligations, such as lower interest rates, extended repayment
periods, or converting debt into equity. This process can significantly reduce
the financial burden on the company, improving cash flow and allowing for the
allocation of resources to more productive uses
The initial
step involves a thorough analysis of the company’s current debt portfolio to
identify which loans or obligations are suitable for restructuring, considering
factors such as interest rates, maturity profiles, and the lender’s willingness
to negotiate. This approach is consistent with previous studies that emphasize
the importance of evaluating financial metrics and lender flexibility when
selecting candidates for restructuring
Throughout
the restructuring process, maintaining transparent and proactive communication
with creditors is crucial, a point strongly supported by prior studies that
underline the significance of trust and collaboration in facilitating
successful negotiations
CONCLUSION
PT Waskita Karya experienced a decline in
profitability ratios, liquidity ratios, and an increase in leverage ratio,
along with an increase in activity ratios in the first year of the pandemic
(2020). However, these figures generally showed improvements in 2021. This
trend was primarily triggered by the Large-Scale Social Restrictions (PSBB) and
the budget allocation policies implemented by the Indonesian government during
the pandemic, which led to a reduction in various projects. PT Waskita Karya
recorded a 28,41% decrease in revenue in 2023 compared to the previous year.
This decline was attributed to a reduction in the number of infrastructure
projects within the construction service segment, property revenue, and other
infrastructure sales. The primary causes were financing issues and problems in
vendor productivity.
The financial health level statuses of PT
Waskita Karya as determined through validation testing following the Decree of
the Minister of State-Owned Enterprises, the financial health status of PT
Waskita Karya experienced a significant decline in 2023. The Altman Z-Score,
Ohlson O-Score, Zmijewski, and Springate models consistently suggest a high
risk of insolvency in the financial bankruptcy forecasts for PT Waskita Karya
from 2019 to 2023. The models primarily position these firms in the
"Distress Zone," which indicates persistent financial instability,
across all companies and years. PT Waskita Karya is frequently included in the
distress categories across all model.
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