Sasotya Pratama / Measuring Financial Performance of Pt. Pos Indonesia During the E-commerce Booming/ 32- 40 INTERNATIONAL JOURNAL OF ISSN: 2580-0132 ipmi BUSINESS STUDIES Vol. 1 | No. 1 (June 2017) Measuring Financial Performance of PT. Pos Indonesia During the E-commerce Booming Sasotya Pratama 1* 1 Sekolah Tinggi Manajemen Ipmi, Jakarta 12750, Indonesia A B S T R A C T A R T I C L E I N F O Advancement of telecommunications technology and Internet Financial Performance, E-commerce, protocol has encouraged the development of services through State-owned Enterprises, electronic commerce (e-commerce). The growth of over 35% per year PT. Pos Indonesia has been achieved by the industry since 2013 in Indonesia. More than ten companies operate in the industry. In line with the development of e-commerce services, also developed supporting industries such as logistics, to deliver products purchased over the Internet. There are about three big private companies in the courier industries, and the only state-owned enterprises (SOEs) in the courier industry is PT. Pos Indonesia (PTPI). The purpose of this study is to measure and evaluate the inancial health condition of PTPI for periods of 2009- 2015 by investigating its inancial ratios included return on equity, return on investment, cash ratio, current ratio, collection period, inventory turnover, total asset turnover, and total equity to the total asset. The result shows achieved inancial health condition of PTPI and can be used to advise further improvements. *Corresponding author Email: [email protected] Copyright © 2017Authors. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. INTRODUCTION The global e-commerce industry is currently the increasing number of e-commerce platform growing very fast due to the development of establishment such as Tokopedia in 2009, Blibli in telecommunications and information technologies. 2011, Bukalapak in 2012, Lazada in 2012, Traveloka The industry had been initiated by industry in 2012, Berybenka in 2013, OLX in 2014, Elevenia players since the beginning of this millennium. in 2014, and MatahariMall in 2015 (Mars Indonesia, In Indonesia, some e-commerce platforms have 2016). Table 1 shows the development of product been established since 1999, such as Bhinneka and sales in the industry in ive countries in Asia for the Kaskus. However, the e-commerce industry in period of 2013 to 2016. Indonesia has increased sharply after 2010 with - 32 - International Journal of Business Studies Vol. 1 No. 1 ( June 2017) Table 1. The Growth of Product Sales in the E-Commerce Industry functioning. It losses reached Rp 367 billion due to Estimated PSO funds (Public Service Obligation) submitted to B2C E-commerce Sales 2013-2016 2013 2014 2015 2016 the Government is still below the target. Based on (in billion) the igure 1, this company has suffered from losses China $181.62 $274.57 $358.59 $439.72 until 2008, then it gained proit around 5.33% in Japan $118.59 $127.06 $135.54 $143.13 2012. Korea $18.52 $20.24 $21.92 $23.71 Figure 1. Financial Performance of PT. Pos Indonesia India $16.32 $20.74 $25.65 $30.31 4.000.000 10,00 3.500.000 5.08 5.33 Indonesia $1.79 $2.60 $3.56 $4.89 3.95 3.000.000 5,00 0.22 Source: PT. Mars Indonesia (2017) 2.500.000 (1.31) 1.68 0,00 2.000.000 (3.04) In Indonesia, the sales revenues generated 1.500.000 (5,00) (7.90) 1.000.000 (10.39) through e-commerce has grown by 45% from 2013 500.000 (10,00) to 2014; 37% from 2014 to 2015; and 37% from (16.70) (15,00) 0 2015 to 2016 (E-commerce Study for 2016, PT Mars 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (500.000) - (20,00) Indonesia). The Business to Consumer (B2C) type of Pendapatan Biaya Laba/Rugi Proit Margin trading is growing faster than the Business to Revenue Expenses Proft/Loss Proit Margin Business (B2B) and the Business to Government Source: Annual Report PT. Pos Indonesia (Persero) 2012 (B2G) types. Singapore Post Limited (2016) has projected Indonesia’s GDP to grow at an average of The purpose of this study is to measure and 5.2% in 2020, with its e-commerce market growth evaluate the inancial health condition of PT. Pos of 31.1% CAGR to reach US$3,800 million by 2019. Indonesia for the periods of 2009-2015 by Online sales jumped from 0.4% of Indonesia retail investigating its inancial ratios included return on revenue in 2014 to an estimated 4.4% by 2019. This equity, return on investment, cash ratio, current shows signiicant growth and increasing level of e- ratio, collection period, inventory turnover, total commerce penetration. asset turnover, and total equity to the total asset. The study would be beneicial to teachers and The development of e-commerce industry has students as reference to understand the inancial fueled the development of supporting industries, performance in logistic industry. The present study among others, courier and logistics industry. will extend existing knowledge about inancial Delivery of products purchased over the Internet performance. The inding of this study also will has grown substantially. Some national logistics help practitioners to create a better inancial companies that have been operating in Indonesia strategy. This research is organized into ive parts, are PT. Tiki Jalur Nugraha Ekakurir (JNE), PT. Pos namely part 1 present the introduction, part 2 Indonesia, PT. TIKI, PT. NEX Logistic. One private overview the literature, part 3 discuss the research company engaged in logistics, the JNE, stated that methodology, part 4 analyze the inding, and part 5 60% of its revenue comes from e-commerce service conclude the research and give recommendation. delivery (Bisnis.com, 2016). LITERATURE REVIEW However, the logistic industry has faced many The Development of PT. Pos Indonesia problems. According to Syarifudin (2017), the main PT Pos Indonesia (PTPI) is a State-Owned problems are poor infrastructure. Goods sent to Enterprises (SOEs) which is engaged in courier, remote areas will be more expensive compared logistics, and inancial transactions. Although with goods located in the city center. The other rooted in a long history, ie since 1906, the name of problems are the issue of regulation that needs to PT Pos Indonesia (PTPI) was just used in 1995. In be upheld and less qualiied human resources. In 1906, the forerunner of PTPI was established with 2003, PT Pos Indonesia suffered losses because 71 the oficial name of the PTT (Posts Telegraaf en percent of its 3,398 branches in Indonesia are not Telefoon Diensts) which later changed to Djawatan - 33 - Sasotya Pratama / Measuring Financial Performance of Pt. Pos Indonesia During the E-commerce Booming/ 32- 40 PTT (Postal Telegraph and Telephone) in 1945. performances (Megaladevi, 2015). This method is In 1961, the Department of PTT changed its usually employed by companies to compare their status to the State Enterprise of Posts and performances against competitors. A lot of Telecommunications (PN Postel) and became PN empirical studies on inancial ratio on different Pos & Giro in 1965, as well as being Perum Pos and industries can be found and studied (Tarawneh, Giro in 1978. 2006; Halkos and Salamouris, 2004). On the banking industry, the inancial ratio analysis has The rapid development of telecommunications been applied to evaluate, examine, and rank based and Internet technologies, the development of on their performance (Tarawneh, 2006). A study in lifestyle, as well as the trend of liberalization of the Oman Commercial Bank showed that the inancial postal service businesses make business PTPI has performance had a relationship with asset shifted signiicantly. The decline in operating management, size, and operational eficiency. performance of PTPI was seen in the year 2000- However, only limited resources which evaluate the 2007, which is also experienced by many other inancial performance of courier and or logistic postal companies in the world. Post and package companies in Indonesia are found. business declined drastically because of their substitutes in the form of a short message service The Decree of Ministry of State-Owned Enterprises via mobile phone and e-mail via the Internet which The Decree of Ministry SOEs No. KEP- replaced the role of individual postal mail. Likewise, 100/MBU/2002 on inancial health assessment of shipments competition with private courier SOEs emphasizes that the growth of businesses companies made PTPI market share declined. must be supported by good infrastructures and reliable evaluation systems. The Decree, as a PTPI answered these conditions by doing a business convenient evaluation system, has also been used transformation. Management has determined the to measure eficiency and competitiveness of wake of the company in 2009 by drafting a new SOEs. This inancial evaluation applies to all SOEs vision and mission which is expected to be more in the inancial, infrastructure, and non- adaptive to the dynamic business environment. infrastructure industries. Three aspects are Through various internal transformation program, evaluated by this Decree such as inancial, revenues of PTPI in 2014 has reached more than operational, and administrations. For inancial four trillion rupiahs or increased almost three-fold aspects, the total weight for infrastructure from 2006-2007. For the next three years, all industries is 50 while for the non-infrastructure leaders of PTPI are targeting revenue growth of the ones is 70. Eight indicators are used to measure company tripled from 2014, be 12 trillion rupiahs. the inancial health included return on investment (ROI), return on equity (ROE), cash ratio, current Previous Research on Financial Performance ratio (CR), collection period (CP), inventory A inancial ratio is considered as one of good turnover (ITO), total assets turnover (TATO), and evaluation methods to measure company total equity to the total assets (TETA).