Abstract:
The purpose of this study is to analysis the financial performance of mining
industry in Indonesia, especially related with efficiency and financial distress; in
order to examine the recent government regulation about holding strategy. The
objectives of this holding strategy are to avoid financial distress and to improve
SOE’s efficiency. Mining, oil and gas sector also had a negative liquidity of cash
to covering or pay the liabilities. Therefore this study is needed to analyze with
the general problem about financial performance, with 2 (two) specification
analysis they are Efficiency and Financial Distress. This study is part of
descriptive explanatory study and using quantitative data of 4 (four) SOEs and 7
(seven) non-SOE’s from each enterprises annual report; and presents as a
comparison study of efficiency and financial distress between SOEs and non-
SOEs. This study uses Data Envelopment Analysis (DEA) and Altman Z-Score,
to analysis efficiency and financial distress, also with the calculation liquidity of
cash to covering liabilities as the strength result of financial distress
measurement. The findings show that only INALUM as SOEs mining enterprises
reaches efficiency index 1 (one) from 2014-2016, and all mining enterprises in
Indonesia experiences in grey zone position and financial distress, in this study
also strength the result of financial distress to the calculate liquidity of cash as
covering liabilities in two sectors, and the result had conclusion that almost at all
in the SOE’s Mining and Non SOE’s Oil and Gas is cannot to covering the
liabilities. Due to the analysis results of financial distress and efficiency, this
study supports the Indonesian government regulation towards holding strategy
SOEs in mining industry.
