Introduction

The corona virus pandemic that has hit many countries in the world has caused
paralysis in various fields. Indonesia is no exception, many sectors are experiencing
stagnation until positive economic issues are on the verge of recession. Reporting
from the merdeka.com website, the number of positive COVID-19 cases in Indonesia
reached 543,975 people as of December 1, 2020. This number is certainly not a small
amount. The number of positive citizens indicated by the corona virus is increasingly
adding to the series of burdens to be resolved by stakeholders in Indonesia.

It is not only the medical world that is frantically trying to overcome the massive
spread of this virus. Equally important, the political stability of the state government
is also vacillating due to the magnitude of the impact caused by the corona virus. The
central government as the highest command to solve problems on a national scale has
a heavy responsibility. Conditions like this arise from unexpected situations.
Therefore, other government policies or agendas will not necessarily be able to
quickly overcome this big problem.

In terms of relations, the economy has a very close relationship with the running of
the government process. We know that the economy is a fundamental aspect that
determines the life and death of a country. Without being supported by a stable and
strong economy, this country is not able to carry out all of its government's agenda to
the fullest. For example, government activities are always related to the budget,
whether it is the RAPBN or RAPBD as a manifestation of the distribution of power.

The importance of the economic aspect has made the central government pay so
much attention to the details of developments related to this aspect. However, at a
time when the urgency cannot be predicted with certainty in a pandemic situation, the
Indonesian economy is reportedly on the brink of recession. This is a terrible specter
especially for the central government because it has an even bigger PR.
Today, we can find lots of options that can be used to achieve each individual's
financial goals. Through real assets, we can buy land, houses, gold, and other tangible
assets. Another option available is financial assets either through the capital market or
the money market. Although it has the opportunity to provide a higher "return"
compared to investing in risk free assets such as deposits, it must always be
remembered that every investment always contains risk.

The risk factor deserves to be taken into consideration because investment can not
only provide benefits, but can also make money that has been hard-earned and
actually leaves a loss. That way, every capital that chooses to grow its money by
investing in any instrument must be prepared to bear the worst risks. However, that
does not mean that we should then avoid investing because there will always be
opportunities for those who are willing to learn and take opportunities.

Investments must be made from now on if not done immediately, we will go round
and round and get stuck again in daily activities that will only waste time and money.
We will still work to earn money and then spend it. There is no real rich person in the
world who started his life without saving. Many of us complain that we can't save
because there's nothing left to save, because income is less than expenses. In fact,
saving is the key to opening the investment door. Before starting to invest, allocate 2
funds regularly for savings.

Pay yourself first, pay yourself first by saving. After the funds are collected enough,
take a small part and then start with investments that can be started with relatively
little capital, for example mutual funds. When mutual fund investment returns start to
grow and your savings increase, choose other instruments to include in your portfolio,
such as foreign exchange (forex) and gold. After getting bigger, use some of the idle
money to invest in instruments that are high risk, but also have the opportunity to
provide large profits such as stocks or stock options.
The manufacturing industry is one of the industrial fields that compete in the global
economy. In Indonesia itself, there have been various types of companies engaged in
manufacturing. Given the strategic role of the manufacturing sector, it is appropriate
that the industrial sector needs special attention. One of the manufacturing industry
sectors that greatly supports economic development and growth in Indonesia is the
automotive industry, both on a small, medium and large scale (Luhukay et al., 2016)

The role of automotive products and their derivatives can be seen from various sides,
namely (1) state revenues through customs (about 95%); (2) The creation of state
foreign exchange; (3) the creation of output value, added value, and employment; (4)
the impact on other economic sectors (multiplier effects); and (5) its linkages with the
upstream (backward linkages) and downstream (forward linkages) business sectors
(Hadi, 2008). Automotive companies that have gone public are one of the companies
that have been able to operate for a relatively long period of time and are listed on the
Indonesia Stock Exchange (IDX) and have been able to generate substantial foreign
exchange for the country and are also able to absorb a large number of workers. so as
to increase national income (Luhukay et al., 2016).

Based on Nielsen's market research, at the end of 2019 Toyota increased its share of
the domestic automotive market to 25.6% with products that are widely known by
people throughout the archipelago. Toyota provided employment for 32,491 people at
the end of 2019 who were involved in automotive production, marketing and
distribution. The company also has 66 area offices with 268 distribution points
throughout Indonesia and a sales fleet of more than 7,000 vehicles including
motorcycles to serve the market.

Result and Discussion

The rapid development of the economy and communication technology provides so

many conveniences in the business world. This can be seen by the number of
companies that are established and growing by utilizing technological facilities. In
addition, this business development also has an impact on increasing competitiveness
between companies so that every company is required to always develop its strategy.
One form of the company's strategy in supporting the company's performance is to
join the capital market.

The capital market has an important role in supporting the economy of a country
because the capital market has two functions at once, namely the economic function
and the financial function. The capital market is a place where parties who have
excess funds (investors) meet with those who need funds (companies) by trading
securities.

Investment is an activity of placing funds in one or more types of assets during a

certain period in the hope of obtaining income or increasing the value of the
investment in the future. Thus, the concept of investment is to place funds in the
present, for a certain period of time, in order to get benefits (rewards or profits) in the
future. This means that funds that should be consumed, but because of investment
activities, these funds are diverted to be invested for future profits.

The risk in investing is that unwanted events are part of life that can occur but cannot
always be avoided. Investment risk is the non-achievement of the original goal or the
non-occurrence of the expected benefits, which in the end is a loss or waste that can
also arise because of the long-term nature of the investment. Investment risk is related
to the time which is the aspect of the present time in this case the time to start
investing in the future regardless of the predictions made in the present.

Engaged in the automotive industry and other automotive industry-related activities.

Toyota is a leading kretek automotive manufacturer that is synonymous with
Indonesia, which is one of the main centers of automotive trade in the world. The
Company started its commercial operations in 1958. With the Vision “To become a
leading company that is proud of the nation that is responsible and provides added
value for shareholders, as well as benefits for all stakeholders on an ongoing basis”
After having excess funds, we are ready to invest. Of course, investments are made
for a purpose. In general, the purpose of investing is precautionary. Many people say
that one of the certainties in life is the 4 uncertainties. Today, people are increasingly
aware that the pleasures we experience today may suddenly disappear the next day.
Human life is surrounded by risks, both light and great. It is for this precaution that
we invest so that if something unexpected happens suddenly in terms of finances, we
still have reserves to deal with it.

The second objective of investing is to make a profit. We invest to get short-term

profits in the form of an increase in the value of the amount of funds we invest. For
example, if we don't invest IDR 1,000,000, it means we expect a profit in the short
term, for example IDR 2,000,000 or the equivalent of 20%

Economic conditions in Indonesia in 2019 posted a fairly high increase in gross

domestic product, which was 5.0 percent, slightly lower than the previous year's 5.2
percent. The government's initiative to provide stimulus and the low inflation rate has
not been able to raise the rate of inflation a domestic demand in the second half of
2019. The number of tourists was also below expectations, while exports and imports
declined amid the ongoing trade war between the US and China as well as slowing
world economic growth rates

Operational management also includes the steps in decision making as mentioned

earlier. If you look at it from the point of view of decision making, there are at least
four steps in decision making in operational management, namely decision making
from certain events, from risky events, from uncertain events, and events born from
conflicts from other circumstances. In addition, there is also a process called through
a decision, which is about the physical process of a product or the facilities used.

Competition Between Similar Companies When viewed from the total market share
in Indonesia, Nissan controlled 1.98% of the car market share in Indonesia in 2005,
then in 2006 by 1.26%, in 2007 by 4.4%, in 2008 by 5.28%, then in 2009 by 4.43%.
This is quite good when compared to Indonesia's automotive leader, namely Toyota
which controlled 34.2% in 2005, 38.8% in 2006, 34.8% in 2007, 35.1% in 2008 and
38.6% in 2009. The following is a table of market share from Toyota, which is the
leader in the automotive industry in Indonesia, while Honda and Isuzu are Nissan's
main competitor brands.

Company Name
Indicator
Toyota Nissan
Market Capitalization Rp 93.795.000 Rp 225.656.920

P/E Ratio 10 16
Earning Rp. 27.260.976 M Rp 23.688,769 M
EPS Rp 5,086 Rp 118
Dividen Rp. 2.600,00 Rp 119,80
Outstanding Shares 96.204.400 45.000.000

With the increase in the company's operating profit, it will attract investors to
invest their shares in the company so that the company's retained earnings will
increase. The increase in retained earnings and working capital owned by the
company will encourage an increase in the company's total sales. Likewise, if the
working capital owned by the company is getting smaller, the company will get a
small profit as well. If the company experiences something like this, it will lead to
financial difficulties and if this situation continues, the company will experience
bankruptcy.

The trade war between the United States and China occurred after U.S. President
Donald Trump imposed tariffs on $34 billion worth of Chinese Chinese goods, which
then led to China retaliating with similar tariffs on U.S. products. The impact of this
trade war made the dollar strengthen against the rupiah and currencies in other
countries.
Table 1.1 Indonesia's Economic Growth 2017-2021 (in percent)

Tahun Pertumbuhan Ekonomi

2017 5,03
2018 5,07
2019 5,17

2020 5,02

2021 (Kuartal I) 2,97

Source : BPS (Badan Pusat Statistik)

Economic growth in Indonesia decreased from 2018 to the first quarter of 2020
due to the implementation of Lockdown by several countries so that access to
international trade was also closed. To avoid the risk of fluctuations in foreign
exchange rates, the Company maintains a policy of funding in Rupiah. Foreign
exchange rate risk occurs from time to time, particularly when equipment/machinery
is procured from abroad and on a smaller scale, from routine procurement of
imported auxiliary raw materials such as filters, flavorings, and spare parts.

BI noted that on Thursday (10/6), the selling rate for the US dollar was Rp. 15,233
and the buying rate for the US dollar was Rp. 15,081 per US dollar. If we compare
this rate with the US dollar-rupiah middle rate the previous day (29/4), the rupiah has
strengthened by 1.67% against the US dollar. In a matter of a week, the rupiah
managed to strengthen up to 3.03% against the US dollar. In a matter of a month, it
turns out that the rupiah has strengthened as high as 7.22% against the US dollar.

Table 1.2 Exchange Rate of Rupiah Against Dollar 2017-2021

Tahun USD
2017 13.436,00
2018 13.548,00
2019 14.711,00
2020 13.800,00
2021 (Mei) 15.233,00
Source : idx.co.id and BPS (Badan Pusat Statistik)

The rupiah exchange rate against the United States Dollar continued to
experience fluctuating strengthening. In 2016 it increased to the level of Rp.
14,711.00 in 2017, it was down to the level of Rp. 13,800.000 in 2019 but again
strengthened significantly in 2020 of Rp. 15,233.00. This impact is not too significant
because Toyota Motor Company's marketing strategy and profit results are more
likely to penetrate the domestic market with a total profit of 108,735,034 compared to
foreign export profits of 1,788,785 in 2019.

During 2018 to 2019, the company's shares rose from 8.1% to 9.8%. However, the
latest condition of Toyota's stock value on May 29, 2020 has increased by a ratio of
1.72%. However, even though sales in the midst of this pandemic, Toyota still
survives and continues to experience an increase in profits because it is not too
influenced by foreign markets because of the fairly professional foreign exchange
arrangement among Toyota executives. The company's foreign debt or (ULN) is also
very small at around 8.7% and has almost 100% revenue and debt using rupiah
currency.

Financial Analysis and Stock Valuation

In making financial investments, there must be a high risk compared to real

investments, it is necessary to do an analysis in order to reduce the risk of losses that
may occur. The analysis is carried out to determine the feasibility of a company to
invest in order to get a greater return. This study aims to determine the intrinsic value
of shares of Toyota Motors Company. The intrinsic value of the stock will be
compared with the stock price in the stock market, the results of this comparison will
provide confirmation to sell, do nothing or buy. The research method used is a free
cash flow approach to equity. The data collected is secondary data taken from official
websites.

1. Determine the Cost of Equity

Cost of Equity is the rate of return required by investors as a consequence of the

investments made in the company's shares. The Cost of Equity approach used is to
use the Capital Asset Pricing Model (CAPM) which is the discount rate in calculating
the fair price of shares.

R = risk free rate + Beta * Risk Premium

= 4.16%+0.51*25%

= 4.16%+12.75%

=16.9%

The level of cost of equity found in the calculation of stock valuation

means that investors require a return rate of 16.9% from the investment
made.
1. Growth Estimation
One of the important parts in conducting stock valuation is
determining the growth rate which is used as the basis for determining the
projected earnings and revenue in the future. Estimated growth projections
are also used to keep the growth of dividends received in line with the
estimated estimates. This growth estimate is very sensitive because if there
is an error in estimating the growth of the fair price of the stock, it will not
match or be far from the market price. In this paper, the dividend payout
ratio for the following year is used at 0% of net income. The estimated
growth can be calculated as follows:

g = retention ratio x ROE

 = (1-DPO) x ROE

= 2%

This expected growth rate with a growth of 2% means that Toyota

Motors Company can generate growth in its company of 2% per year.
1. Value of equity per share
Value of equity is an analytical tool used to calculate the fair price of a
company's shares. Value of equity consists of 3 important elements,
namely: dividend per share, cost of equity and expected growth rate.
Calculation of Value of equity is as follows:

Do x(1+ g)
Vo=
( r−g)

8.455 x (1+2 %)
Vo=
(16 %−2 %)

8.455 x 3 %
Vo= =Rp .1.811 /lembar
14 %

Based on the stock valuation results above, Toyota Motors Company's stock position
is in a buy signal condition. This is because the market price of Singtel's shares is
below its fair value. Stocks in long positions have good long-term prospects because
in the future there will be an upward trend.

Toyota Motors Company prices as of December 31, 2020 closed at Rp. 1,811/share
and up from the previous day, it is known that the stock price in the market is lower
than the fair price of the stock. If the market price is less than the fair price of the
stock, it is said to be undervalued. Stocks that have an undervalued price are better
bought. The results of this calculation can be taken into consideration for investment.
Based on the results, the authors suggest investing in Toyota Motors Company shares
which are still in the undervalued category because they are relatively cheap and have
better long-term prospects.

Comparison of total assets (Fixed Assets and Non-Current Assets) of Toyota and
Nissan companies perusahaan:

Year Toyota Nissan

2017 66,759,930 42,508,277

2018 69,097,219 43,141,063

2019 69,097.219 46,602.420

2020 78,647.274 50,902.806

Source : (Annual Report)

Risk in stock investment is related to financial risk where the risk is suffered by
investors as a result of the issuer's inability to fulfill dividend payment obligations,
market risk also arises due to the decline in the stock market in general and certain
stocks due to interest rates, inflation, government policies, economic growth,
company policies or management, as well as psychological risk, namely the risk for
investors related to market changes (Munawar & Yuningsih, 2019).

Stock prices can reflect the rate of return on capital making it easier for investors to
decide which investment to take. Investors only hope that by buying shares, they can
receive dividends (profit sharing) every year and will get capital gains when selling
back the shares they have (Novenka & Budiarti, 2015).

The addition of fixed assets was Rp 2.6 trillion, an increase of 11.5% so that total
fixed assets would be Rp 25.4 trillion at the end of 2019. Investment in fixed assets
includes the purchase and/or renewal of machinery and equipment as well as spare
parts in line with business needs routine. Net cash invested in the procurement of
fixed assets in 2019 rose to IDR 5.0 trillion (2018: IDR 3.1 trillion). More than 55%
of this amount was used for the purchase of machinery and equipment. The rest
includes land, buildings, inventory and vehicles with a total value of 4,718,278.

Conclusion

Toyota Motors Company as one of the state-owned enterprises is estimated to be able

to grow significantly, this is due to support through the purchase of shares, bonds,
and the use of services from Toyota Motors Company. Toyota Motors Company
continues to make efforts for the company's growth by purchasing assets such as parts
and spare parts, servicing, insurance, and increasing the number of BTS, in order to
compete globally.

From the data we have presented, with an initial fund of $200,000, we recommend
buying shares of Toyota Motors Company. Hopefully, in the next few years, Toyota
Motors Company will be able to continue to grow.
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Annual Report (Laporan Tahunan) Nissan Company. (2019).

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