Financial analysis of post-privatization performances of state owned enterprises at Jakarta stock exchange: a case study of mining companies
The main purpose of this thesis is to analyze whether the aim of privatization in Indonesia, which is focused on the privatization of State Owned Enterprise in mining sector, has been achieved. It is appealing to conduct this research as there is still limited empirical study on privatization in Indonesia. The main goal of privatization itself is mentioned to increase SOEs efficiency and profitability of SOEs.rnrnThe analysis of financial performance in this study is based on two measures, which are accounting based measure and market based measure. Accounting based measure use the variable of ROA, ROE, debt to asset ratio and asset turnover ratio, while market to book ratio is used as the market based measure. Data envelopment analysis for non parametric data is also employed to determine the difference in efficiency performance using net income and sales approach. There are three privatized firms taken as the case study, namely PT Aneka TaMBAng Tbk, PT Timah Tbk and PT Bukit Asam Tbk.rnrnAfter implementing the above analysis steps, the results shows that privatizing SOEs has not indicated that efficiency and profitability improved, although the enterprises managed to reduce their leverage.
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