Indonesia Conference Directory

The overarching question for the government as the sole owner of the State-Owned Enterprise (SOE) is why the company needs to be owned by the state. On the other hand, there are SOEs that conduct similar business activities like Indonesia Trading Company (ITC) – PT Perusahaan Perdagangan Indonesia (PPI) and Perum Badan Urusan Logistik (Bulog). This study aims to measure the financial health of business, performance and competitiveness as well as to predict the risk of bankruptcy of ITC itself. This research was conducted by using secondary data from the company-s financial statement and the application of the Altman model and the Data Envelopment Analysis (DEA) method. As the result of the research about the financial health of the company, it has not shown positive performance and even loss. It can be seen from the Altman Z-Score which is in the gray area and also while using the DEA method, the efficiency score shows less than one. This study recommends that a restructuring of ITC can be carried out to make this SOE healthy, so it can operate efficiently, transparently and professionally. To realize this, this study finds the possibility of Perum Bulog to acquire ITC.