Analysis Impact of Transfer Some Assets PT Tambang Timah to PT Timah (Persero) Tbk on The Performance and Efficiency PT Timah (Persero) Tbk

The independence program's subsidiary company PT Timah (Persero) Tbk (PT Tbk) among others PT Tambang Timah (PT TT), which resulted in leasing transactions for buildings, machinery and equipment are charged by PT TT to PT Tbk for the use of buildings, machinery and equipment PT TT used by PT Tbk. PT Tbk is a tin ore mining company that lease the assets from its subsidiary (PT TT) in the form of 5 (five) dredges for tin mining operations based on mining permission (IUP) of PT Tbk with a total cost of lease per year is Rp. 40.202.862.562, - (include VAT) with a lease term of 5 (five) years. With the company's operational cost efficiency, then  PT Tbk review if the cost of leasing this property is cheaper or more expensive than the assets purchased by PT Tbk from PT TT. Buying Option 5 (five) dredges can result  efficiency with reduce cash out money amounting to Rp. 90.257.696.866,- and can improve the performance of PT Tbk is shoThe independence program's subsidiary company PT Timah (Persero) Tbk (PT Tbk) among others PT Tambang Timah (PT TT), which resulted in leasing transactions for buildings, machinery and equipment are charged by PT TT to PT Tbk for the use of buildings, machinery and equipment PT TT used by PT Tbk. PT Tbk is a tin ore mining company that lease the assets from its subsidiary (PT TT) in the form of 5 (five) dredges for tin mining operations based on mining permission (IUP) of PT Tbk with a total cost of lease per year is Rp. 40.202.862.562, - (include VAT) with a lease term of 5 (five) years. With the company's operational cost efficiency, then  PT Tbk review if the cost of leasing this property is cheaper or more expensive than the assets purchased by PT Tbk from PT TT. Buying Option 5 (five) dredges can result  efficiency with reduce cash out money amounting to Rp. 90.257.696.866,- and can improve the performance of PT Tbk is shown in the ROA ratio analysis projected in 2013 to 11%, ROI (11%), and ROE (15%).  Implementation plan buying of 5 (five) dredges are Dredges 16 Kebiang, Dredges 20 Belitung 1, Dredges 21 Singkep 1, Dredges 11 Karimata and Dredges 7 Meranteh is expected in mid-2013, the company efficiency is soon realized.  Thus, the funds already budgeted for the payment of taxes and interdistric transaction on lease 5 (five) dredges can be used to the five dredges maintenance costs itself. Keywords: Leasing-Buying, ROA, ROI, ROE.wn in the ROA ratio analysis projected in 2013 to 11%, ROI (11%), and ROE (15%).  Implementation plan buying of 5 (five) dredges are Dredges 16 Kebiang, Dredges 20 Belitung 1, Dredges 21 Singkep 1, Dredges 11 Karimata and Dredges 7 Meranteh is expected in mid-2013, the company efficiency is soon realized.  Thus, the funds already budgeted for the payment of taxes and interdistric transaction on lease 5 (five) dredges can be used to the five dredges maintenance costs itself. Keywords: Leasing-Buying, ROA, ROI, ROE

Efficiency and productivity of Indonesian Islamic Banking

The direction of the Indonesian banking industry development policy based on the vision of achieving a healthy banking system, strong and efficient to create a stable financial system in order to drive national economic growth. Using analysis of efficiency and changes in Total Factor Productivity of the banking industry during the 2004 to 2009 period, this research aims to observe at the performance of Islamic banking as the new actors of Indonesian banking industry. To analyze the efficiency, this research utilize the method of non-parametric Data Envelopment Analysis (DEA). To measure changes in Total Factor Productivity of Islamic banking industry Malmquist Productivity Index is utilized. From the calculation of relative efficiency by means of input-oriented DEA and also the assumption of Variable Returns to Scale, the study indicated that the efficiency of Islamic banks in the 2004-2009 period are lower on the average compared to conventional banks; except during the period of July 2004 to December 2005. There are three Islamic banks analyzed for this particular research, namely Bank Muamalat, Bank Syariah Mandiri and Bank Syariah Mega, consecutively ranked 3rd, 10th, and 13th within the index of productivity. Yet, the results of t-test concluded that the efficiency and productivity of Islamic banks and conventional banks, statistically, are not significantly different. These results indicated that Islamic banking in general possess the ability to compete with conventional banking in Indonesia.Keywords: Indonesian Islamic Banking, DEA, Efficiency, Malmquist Index, Total Factor Productivity

Business Analysis of Antimony Between PT Timah-Mitsubishi-Yamanaka

PT Timah (Persero) Tbk is the State Owned Enterprises that do tin mining business integrated starting from exploration, mining, smelting and marketing. The company set a target revenue growth of at least 15% per year by the company's business development strategy year (Albar, Alwin, personal interview, 10/9/2012). Inorganic Chemical Unit is a business unit of Mitsubishi Corporation that provides services and products, ethanol, methanol, ammonia, sulfuric acid, fertilizers, mining products and other.  Yamanaka & Co Ltd has a copper smelting business, metallic materials, electronic materials, chemical industry, and experienced more than 20 years to produce antimony trioxide.  Since the 2009 China as the supplier of the world's largest antimony metal (82%) regulate antimoni industry in the country, one of which implements the antimony metal export quota and prevent illegal mining or smuggling activities. This brings Chinese policies impact antimony metal supply deficit in global market and lead to a price increase from USD 5,500/ton in 2007 reached peak USD 17,200/ton in 2011 and USD 13,400/ton in June 2012. According to projections made by Mitsubishi Corporation, world consumption antimony in 2016 for 241,650 tonnes with supply of 206,460 tons so that there will be a supply shortage 35,190 tons. Antimony smelting plant requires a total project cost of $ 16,851,655 and financial analysis of the business of appealing to run because of the calculation of the financial projections all provide good indicators, namely: IRR 110.02%, NPV of USD 30,641,727; ROI 55.8%; PBP 1.1 years and PI 7.5. This situation is captured as a business opportunity by PT Timah (Persero) Tbk, Mitsubishi Corporation and Yamanaka Co Ltd is planning to form a strategic alliance Joint Venture Company (JV Co) with antimony smelting plant established in Indonesia with a capacity of 5,000 tons / year. The sales target for the Japanese market as much as 3,000 tons / year, South Korea targeted 1,000 tons / year and the rest for the Indian market, Thailand, Hong Kong, Europe and the Americas allocated a maximum of 1,000 tons / year. Keywords : antimony business, strategic alliance, business analysis of antimony, antimony metal, antimony smelting project

Risk Management-Based Internal Audit for Auditor to Improve The Performance of Internal Audit Unit of PT Timah (Persero) Tbk

PT. Timah (Persero) Tbk. is a holding company whose primary activity is related to tin mining operations and services marketing  products of their business group. During company's time course and development, PT.Timah (Persero) Tbk. Internal Audit Unit/SPI, as the internal audit executor, always face demands of dynamic personnel professionalism and working capacity in all conditions. Related to challenges in the process of task implementations and internal audit function, interrelation between risk management and internal audit was obtained. Therefore, it is unavoidable for internal audit activity to use risk management process. From a comparative study of  3 (three) domestic as well as foreign companies is PT Petrokimia Gresik, PT Sucofindo and Turk Tellekom (Turki), strong link was found between risk management and internal audit and their roles in improving internal audit of those companies.  Moreover, based on analysis results of PT.Timah (Persero) Tbk.'s role in carrying out its function and part, by using qualitatively-based research methodology, it was found that there were some weaknesses that could potentially reduce internal audit effectiveness and efficiency. Hence, a suitable approach of the application of risk management-based internal audit was proposed in form of a business solution for the internal audit unit of PT. Timah (Persero) Tbk. Benefits of the application was provided with reference to those 3 (three) domestic and foreign companies that have applied the approach. Keywords: Risk, Risk Management, Audit, Audit Interna

Risk Analysis of Customers Churn Rate at the Bandung Mandiri Shari’a Bank

Shari'a banking are expanding and growing rapidly nowadays, as shown by the increasing market shares at several already existing shari'a banks as well as births of new shari'a banks induced by conventional banks. Such growth is also proven at Bank Shari'a Mandiri (BSM), namely the Bandung Mandiri Shari'a Bank, by a significant increase in the number of its financing customers. Indeed, the increase could not be separated from the churn rate, namely customer migration and absorption from conventional banks or the other existing shari'a banks to Bandung BSM. Financing customer migration thus becomes an important matter to be studied, in order to find out about the driving factors for financing customers' preferences to be made an input for Bandung BSM for planning a strategy to cope with the market share increase. This research was aimed at identifying financing customers' preferences toward Bandung BSM by studying the dominant factors influencing the financing customers to choose and migrate to Bandung BSM and using the factor analysis method to observe the churn rate risks. Samples are taken from a number of Bandung BSM customers, selected through questionnaires. There are three factors influencing customer preferences for choosing Bandung BSM, namely: availability of supporting facilities, leadership, and shari'a. Based on impact-probability matrix analyses, it is shown that there are three attributes that have high probability values, that is, profit sharing system, administrative easiness, and leadership factors. Results of this research also showed that the Bandung BSM churn rate risks were of medium to high probability, and this will greatly impact the bank's performance. Therefore, some real effort is necessary to minimize the churn rate risks. Keywords:customer preference, chun rate risk, factor analysis, risk analysis, risk identification, risk measurement, impact-probability matri

Financing Strategy for FSRU Belawan Project: a Recommendation on Financing Strategy for the FSRU Belawan Project

Related to PGN’s plan to invest in Floating Storage and Regasification Unit (FSRU) in Belawan, Medan, Budget Division of PGN needs an efficient financing strategy. Based on PGN’s financial condition in 2010, four scenario of financing strategy were analyzed. The four financing strategy are carried out by issuing right, issuing corporate bond, combination of issuing right and utilizing company’s liquid assets, and combination between issuing corporate bond and utilizing company’s liquid asset. Each scenario is analyzed by computing its WACC and assessing NPV, IRR and payback period based on the calculated WACC. Along with that, the opportunity costs, securities issuance costs, and its effect to company’s liquidity are also assessed. The recommended solution is to issue corporate bond and utilizing excess liquidity, since this strategy has the highest NPV, no opportunity cost in issuing undervalued stock, short period of debt repayment, and relatively acceptable effect on company liquidity. Another part of the report is the risk management strategy for the project. The risk management is mainly mitigating the funding liquidity risk, and the market risk of interest rate, foreign currency and natural gas price. The implementation plan will discuss about the project management in corporate bond issuance and liquidity allocation for project financingand risk management.   Keywords: Financing strategy, FSRU, Right issue, Corporate bond issue, WACC

Merger Review Process Finance PT Timah (Persero) Tbk and PT Tambang Timah

Law no 4 in 2009 is about Mineral and Coal Mining 2009 and its implementation rules set mining companies do their own mining activities and conduct processing and refining facilities in the country and has its own processing or purification. PT. Timah (Persero) Tbk is having the biggest Tin Mining Permit in Indonesia but has no mining equipment, metal processing and refining facilities and other assets due to the mining operations supporting the asset has been transferred in the context of business expansion (spinn off) in 1998 as a capital contribution Subsidiary to the PT.Tambang Timah. After the enactment of the Mining Law, PT. Timah Tbk conduct mining activities that give rise to its own internal transactions between PT. Tambang Timah and PT. Timah Tbk ineffective and inefficient.In 2012 Minister of Energy and Mineral Resources (ESDM) published law No.7/2012 of Added Value Through Mineral Processing and Refining Mineral activities, in order to comply with the regulations PT. Timah Tbk purchase processing facilities and / purification along with other supporting assets are located in Unit Metallurgy. Therefore it will be proposed merger solution. Analysis shows that with merger in 2013 reachs efficiency Rp. 8.9 billion and increase in cash / cash equivalents of Rp 23, 7 billion. Expected merger synergies will also result in managerial, streamlining organizational structure and company’s support going concern. Through this merger would make PT. Timah Tbk as mining companies an efficient and integrated with core ownership of whole mining assets so it can achieve the conditions in accordance with the Mining Law and its implementation. Keywords: Mining Law, Merger (Merger), PT. Timah Tbk, PT. Tambang Tima

Implementing Derivative Tools As Foreign Exchange Risk Management for Steel Industries in Import Activiti

This paper examines implementation of using derivative tools which are forward and call options for steel industries in Indonesia. Steel industries in Indonesia depend on importing such commodities and raw materials to fulfill the high consumption because local production is not enough. Therefore, importing which needs forex will face risk in forex itself. The implementation of both tools are described in three different scenario of hedging percentage which are 25:75, 50:50, and 75:25. The results of this study will be as recommendation to steel industries in Indonesia to import raw materials in four months ahead with best toolPurpose: This study has purpose to help steel industries in controlling foreign exchange risk based on its high fluctuation while importing raw materials.Design/methodology/approach: The researcher did data gathering from primary data which is obtained from a representative company of steel and secondary data from the internet. Researcher also provide rule of each methods which is given by a commercial bank.Findings: Using call options is better than forward from expected values consideration with specification from the same bank who provide the tools.Research limitations/implications (if applicable): Only limited in over-the counter derivative which are call options and forward.Originality/value: Direct comparison between call option and forwardKeywords: Derivative, over-the counter, foreign exchange riskCategory: Financ