t

GDP depends on people's income in the country. The higher the

income of the people, the higher of GDP of the country. The increase
in people's income will affect their purchasing power. GDP from 2012
to 2014 shows declining, so the amount of sales (product) also
decreased. It will be inuence the amount of total production because
the company didn't want to have so many inventory.

Economic Growth is an increase in the capacity of an economy to produce goods and services,
compared from one period of time to another. The growth of an economy is thought of not only as an
increase in productive capacity but also as an improvement in the quality of life to the people of that
economy. During 2012, the global economy has been suffered with crisis and uncertainty, evidence by
the slow economic growth in many countries, particularly in Europe. This prolong crisis signicantly
affects countries whose main market is highly depend on the foreign market or export demand.
In
2013, the global economy has still not grown as expected. The economic growth tends to slow down
and an increase in economy volatility happens because the economic crisis in United States and
European countries has not been fully recovered. That’s why the economic growth is decrease from
6.23% to 5.78%. Throughout the year 2014, the global economy was still tinged with uncertainty and
still has not fully recovered from the crisis. The global economic growth in 2014 was only reached
2.6%, or lower than
2013 which grew by 2.9%. The Indonesian economy was also affected and
only grew by 5.0% in 2014 which was lower than previous year of 5.6%. This
situation was in line with the slow recovery of global economy and the
decrease of world price of commodities. In line with undergoing global
economy crisis, the company which made most of their sales in international
market is affected as well.

The increase of ination from 2012 to 2013 reached 100 percent but from 2013 to 2014 decrease 0.24%.
This causes the Indonesian economy deteriorated. So the number of market demand for goods decreases.
The annual report of PT Tjiwi Kimia showed a decline in sales in 2013, because when there is ination,
consumers prefer to save money rather than to spend money.
Currency risk arise due t
o
nancing activities and daily o p e
rations. The Company
monitor and manage these risks by
equalize nancial liabilities in foreign
currencies with nancial assets in
foreign currency and make a purchase
or sale of foreign currency when
needed. Changes in currency exchange
rates affect the selling price of pulp and
paper. Because the value of the rupiah
against US dollar in 2012, 2013 and
2014 always decreased, then the
selling price of pulp and paper
increased so that demand for goods
declined due to drastic price increased.
 Forest Production

Wood materials commonly used to make paper is papyrus tree, mulberry and pine. This type of
wood is cut from production forests and silenced shelter in place that has been prepared for several months
to keep the moisture in the wood logs.
After being expelled from the shelter, the bark peeled by machine. This process is also called the De
Barker, after the piece of wood in the split - split into smaller sizes using a chipping machine.
After the wood is cut into smaller parts - small, the next process is the cooking of the wood chips
with gester machine for the purpose of sorting wood bers with lignin. The wood
bers are used as the main material for making paper.
There are 2 kinds of paper cooking process, namely: Chemical Process & Mechanical Pulping Process.
Understanding Pulp (Pulping) is the concoction of paper into the machine getser. The pulp process can be
explained simply as the 'pulping' paper because it resembles the shape of the powder cooking porridge.
After going through the process of pulping, pulp reprocessed in the stock preparation for the 'mix'
of paper with the addition of material - other chemicals such as dye paper (standard white), retention
agents, substances ller (substances to tamp pores - pores between the wood bers) , water etc. After
completing this stage, the process is continued to the area of the paper machine (paper machine).
the stock preparation stage, the mixed material has been cleaned prior to use cleaner / purier, then later
inserted into the headbox to form the size of a sheet of paper placed on the table fourdinier (mold). This
tool serves to drain the water substances that are still in stock preparation (dewatering) to produce a wet
paper which has a solid content of about
20 percent.
After the paper density levels increased to 50% using a machine Press by removing the water
content remaining. The process through which the press part is insert paper roll between two large rotating
pressurized so that the remaining water dumped out.
The next process is continued to the drying section (dryer). Dryer serves to drain more water content
terseisa to only reach 6% only. The result has been through the nishing materials that can be regarded as
nished paper, which is then rolled into a giant roller (pop reel) to form a paper roll.
Paper roll (a roll of paper) is what is the giant paper material so that then sold to manufacturers,
manufacturers that use paper as their basic ingredients such as; plant books, newspapers, etc.
 ST MT
LT

Strategic Factor Duration Description

 S.1 Quality production
results
S.2 Wide distribution S.3
Company liquidity S.4
Employees quality
S.5 Concerned about the
environmental impact
S.6 The efciency of cost
advertising
W.1 The nancial condition of
the company is less stable
W.2 The condition of facilities
and infrastructure renderer
limited information for the public
W.3 Decomposition method
existing wood components are
less effective

O.1 Market demand for paper

will always be there O.2
Purchase of new machinery
O.3 ACFTA (ASEAN- China
Free Trade Area)
1. Acquisition (S1,S2,S3,O1) 1. New Operation
2. New Product Method (W3,O1,O2,O3)
Development (S1,O1) 2. Production
Optimalization (W3,O2)

T.1 Lack of trust from

organizations concerned about
the environment against
industrial raw materials Tjiwi
1. Environment Awareness 1. Information Access
Kimia (S5,T1,T3,T4) Improvement (W2,T2)
T.2 The global crisis
T.3 Public awareness of the
issue of global warming
T.4 Cheap discharge
papers from Europe
T.5 Deforestation
Income statement
2013 2014 Change % PT Fajar PT Indah

PT Tjiwi Kimia Tbk

Items (x USD 1 Million)

Net sales 1,222 1,195 (27) -2.21% 10.00% -0.64%

Cost of good sold 1,073 1,056 (17) -1.58% 15.01% -0.91%
Gross Prot 149 139 (10) -6.71% -19.64% 0.67%
Selling 69 76 7 9.65% 14.69% -0.62%
General and administrative 49 41 (8) -16.33% -1.96% -3.45%
Operating income 31 22 (9) -28.32% -33.88% 4.60%
Other expense-net 16 11 (5) -31.25% -75.82% 100.00%
Income before income taxes 15 11 (4) -25.12% -138.30% 19.81%
Income tax benet 12 9 (3) -25.00% -150.00% -1042.86%
Net income 27 20 (1) -2.59% -134.54% -42.99%
Consolidated The consolidated net sales of the Company decreased from USD
1,222 million in 2013 to USD 1,195 million in 2014 or a decrease of
Net Sales 2,21%. The decrease was mainly due to a decrease in selling price of
Company's products.
Cost of goods sold consists of raw material cost, indirect material
costs, labor cost and other overhead costs. Raw material costs consist of
pulp. Other overhead costs mainly consist of packaging expenses, repairs
Cost of and maintenance expenses, depreciation of xed assets, energy
Goods Sold expenses, electricity expenses and water expenses. Cost of goods sold in
2014 amounted to USD 1,056 million, or a decreased of 1.58%
compared to 2013 amounted to USD 1,073 million.
The consolidated gross prot of the Compa
Consolidated n y decreased from USD 149 million in 2013 to USD 139 million in
2014 or a decrease of 6.71%.
Gross Prot
Operating expenses consist of selling expenses and general and
administrative expenses. Selling expenses mainly consist of freight
expenses, commission, salaries and wages and bank charges. General and
administrative expenses mainly consist of management and professional
Operating fees, salaries and wages, insurance expenses, ofce expenses and repairs
Expenses and maintenance expenses. Operating expenses amounted to US$ 117
(USD 76 + USD 41) million in 2014, or a decreased of
1.4% compared to 2013 amounted to USD 118 (USD 69 + USD
49) million.
The consolidated operating income of the Company decreased
from USD 31 million in 2013 to USD 22 million in 2014, or a decrease of
Consolidated 28.32%. This was mainly due to a decrease in gross prot margin of the
Company in 2014.
Operating
Income

Other expenses decreased by 31.25% from USD 16 million

Other Expenses in 2013 to USD 11 million in 2014.

Income before income taxes decreasde by 25.12% from USD

Income Before 15 million in 2013 to USD 11 million in 2014.
Income Taxes
Income tax benet of the Company decreased from USD 12 million in
Income Tax 2013 to USD 9 in 2014, or a decrease of 25%.
Benet
 Income statement
2013 2014 Change %
PT Fajar Surya
(x Rp1 billion)
Items
Net sales 4.961 5.457 496 10.00%
Cost of good sold 4.243 4.880 637 15.01%
Gross Prot 718 577 (141) -19.64%
Selling 177 203 26 14.69%
Consolidated General and administrative 51 50 (1) -1.96%
Operating prot 490 324 (166) -33.88%
Net Income Other expense-net 819 198 (621) -75.82%
Income before income taxes (329) 126 455 -138.30%
Income tax benet 80 (40) (120) -150.00%
Net income (249) 86 335 -134.54%

The consolidated net income of the Company decreased from

USD 27 million in 2013 to USD 20 million in 2014, or a decreased of
2.59%. This was in line with a decrease in gross prot and operating
income of the Company.
Net sales increased by 10% to Rp5.457 billion in 2014. Sales
growth was driven by price gains, primarily by an increase in corrugated
medium up by 8.6% representing 46% of total sales. Average prices for
coated duplex and kraft liner paper increased by over 3%. Total sales
volume for the year grew 2.2%. Domestic sales continued to dominate at
86% of sales revenues while export sales revenues grew 8% on lower
volumes shipped year on year, reecting US Dollar strength.
Cost of sales increased 15% in line with an increase of
21% in raw materials costs to Rp3.717 billion attributable to higher costs
for domestic sources of raw materials. We currently obtain about 50% of
our recovered paper needs from domestic collectors, however there has
been convergence between the local and imported costs per kilo since the
Revenue beginning of 2013, so that for most of 2014 local domestic sources were
more expensive. We continue to closely monitor foreign currency
exchange movements and buy more recovered paper from locally
sources when prices are stable. Overhead was up 14% to Rp1.230 billion
and in consequence, margins came under pressure. Gross prot declined
by 20% to Rp577 billion.
Net sales increased by 10% to Rp5.457 billion in
2014 from Rp4.961 billion in 2013. Cost of goods sold in 2014 amounted
to Rp4.880 billion, or a decreased of 1.58% compared to 2013
amounted to Rp 4.243 billion.
 Selling expenses were 15% higher, at Rp203 billion, principally
due to US Dollar denominated export freight costs while general and
Selling, General administrative expenses were down by 3.5% to Rp50 billion.
and
Administrative
Expenses

Interest charges were lower year on year with a reduction in the

level of debt. Translation costs on foreign currency debt reduced 88%
from Rp702 billion in 2013 to Rp83 billion in 2014. After the substantial
Finance Charges re-rating in the second half of 2013, which had a material impact on the
income statement in that year, the Rupiah strengthened during the rst
and Translation half of 2014 and traded in a narrower range against the US Dollar before
Costs a period of further depreciation during the nal quarter. The level of
foreign currency denominated debt at reporting date was 25% lower year
on year at USD 173 million.
Income statement
2013 2014 Change %
PT Indah Kiat
(x US $1 Million)
Items
Net sales 2,652 2,635 (17) -0.64%
Cost of good sold 2,201 2,181 (20) -0.91%
Gross Prot 451 454 3 0.67%
Selling 161 160 (1) -0.62%
General and administrative 116 112 (4) -3.45%
Net Income Operating prot 174 182 8 4.60%
Other expense-net 33 66 33 100.00%
Income before income taxes 207 248 41 19.81%
Income tax benet 14 (132) (146) -1,042.86%
Net income 221 126 (95) -42.99%
Fajar Paper returned to prot in 2014, with foreign currency
translation costs substantially lower, in line with improvement in
external factors, including macro economic policy reforms. Net Income
for the year was Rp86,7 billion (Rp
249,1 billion loss in 2013) being Rp 35,0 earnings per share.
 The company's sales are derived from sales of pulp, paper,
packaging and other product. The consolidated net sales of the company
for the year ended December 31, 2014, were USD 2,635 million, a
decrease of 0.6% compared to 2013 amounted to USD 2.652 million. This
Consolidated was mainly caused by the decrease in selling price of the Company's
products. Consolidated net sales per segment consist of paper and pulp
Net Sales products amounted to USD 1,765 million and packaging product and
others amounted to USD 870 million in 2014 (amounted to USD
1,760 million and USD 893 million in 2013 respectively).
Cost of good sold consist of raw material, indirect material costs,
labor expenses, and overhead expenses. Raw material consist of wood,
ulp and waste paper. Overhead e x p e n s e s m a i n l y c o n s i s t o
f p a c k a g i n g , r e p a i r s a n d maintenance expenses, depreciation
of xed assets, energy expenses, transportation expenses, water and
electricity expenses. The cost of good sold of the Company amounted to
USD 2,181 million in2014, or a decrease of 0.9% compare with
Cost of 2013 amounted to USD 2,201 million. Consolidated cost of good sold per
segment consist of paper and pulp products amounted to USD 1,396
Good Sold million as well as packaging products and others amounted to USD 785
million in 2014 (amounted to US$ 1,414 million and USD 787 million in
2013 respectively).
The consolidated gross prot of the company increase from USD
451 million in 2013 to USD 454 million in 2014, or an increased of 0.7%.
The consolidated gross prot increased from
17.0% in 2013 to 17.2% in 2014, this was mainly due to decrease in cost
of good sold of the Company's products. Gross prot of paper and pulp
products per segment amounted USD 369 million and packaging
Consolidated products and others segment amounted to USD 85 million in 2014
(amounted to USD 344 million and USD 107 million in 2013
Gross Prot respectively).
Operating expenses consist of selling expense and general and
administrative expenses. Selling expenses mainly consist of freight
expense, ofce expense, commission and salaries. General and
administrative expenses mainly consist of salaries, professional fees,
ofce expenses and depreciation of
Operating xed assets. Operating expenses amounted to USD 262 million in 2014
or a decreased 0f 5.6 % compared to 2013 amounted to USD 277 million.
Expenses
 The consolidated operating income of the Company increased
from USD 174 million in 2013 to USD 192 million in 2014, or an
increased of 10.8%. This was primary due to the increase of gross prot
Consolidated and the decrease of operating expenses, the Company recorded on
Operating operating income of paper and pulp segment amounted to USD 194
million and operating loss of packaging products and others segment
Income amounted to USD 2 million in 2014 (operating income amounted to USD
160 million and operating loss amounted to USD14 million in 2013).
The company recorded other expenses-net of USD 66 million in
2014 compared to 2013 recorded other income-net of USD 33 million.
This was mainly due to the decrease of gain on foreign exchange-net from
Other income USD 171 million in 2013 to USD 28 million in 2014. The gain on foreign
(expenses)-net exchange was due to US Dollar value strengthened against Indonesian
Rupiah and Japanese Yen. The conversion of the Company's liabilities
denominated in currencies other than US Dollar resulted to a gain on
exchange.
The Company's consolidated net income decreased by
43% from USD 221 million in 2013 to USD 126 million in 2014.

Consolidated
Net Income
 Revenues Cost
of Sales Period
Cost
Operating Expense
Non-Operating Expense

PT Indah Kiat PT Fajar Surya Wisesa

200
2500

150
2000

100
1500

50 1000

0 500

-50 0
2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014

Revenues Cost Revenues Cost

of Sales Period of Sales Period
Cost Cost
Operating Expense Operating Expense
Non-Operating Expense Non-Operating Expense
 2009 2010 2011 2012 2013 2014

PT Tjiwi Kimia Tbk (x USD 1 Million)

Items
Net Sales 855 1,339 1,379 1,322 1,222 1,195
Period Cost 79 143 128 130 118 117
Cost of Sales 700 1,117 1,146 1,105 1,073 1,056
Operating Expense 779 1,260 1,274 1,235 1,191 1,173
Non-operating Expense 25,293 16,965 14,906 44,2833 16,374 10,840

Items 2009 2010 2011 2012 2013 2014

Revenues 100 157 161 155 143 140
Period Cost 100 181 162 165 149 148
Cost of Sales 100 160 164 158 153 151
Operating Expense 100 162 164 159 153 151
Non-operating Expense 100 67 59 175 65 43

Current year balance

The formula to calculate index-number trend analysis is: xBase100
year balance
Result of index-number trend analysis on selected nancial statement items for PT Tjiwi Kimia
are reported in above table. Sales increased from 2009 to 2010 as many as
57%, and increased again by 2.5% in 2011. After that, sales continued to decline until the end of 2014 as
many as -3.7% in 2012, -7.7% in the year in 2013 and -2.1% in 2014.
Meanwhile, period cost operating expenses for the PT Tjiwi Kimia in 2009 to 2010 there was an
increase of 81%, a change in 2010 to 2011 was -11%, the change in 2011 to
2012 is 1.9%, the change in 2012 to 2013 were - 9.7%, and changes in 2013 to 2014 was -
0.7%.
For cost of sales, PT Tjiwi Kimia increased signicantly from 2009 to 2010, namely by
60%. While the following year only increased about 2.5%. But in 2012 until the end of 2014
PT Tjiwi Kimia decreased, by 3.7% in 2012, 3.2% in 2013 and 1.3% in the year 2014.
Operating expense for PT Tjiwi Kimia increased from 2009 to 2011. This is equal to
62% in 2010 and 1% in 2011. While in the year 2012 to 2014 continued to decline. Details of the decline
are as follows: 3% in 2012, then 4% in 2013 and 1% in 2014.
Non-Opertaing Expense PT Tjiwi Kimia average has decreased in every year. Except in 2012. The
decrease in 2010 was 33%, in 2011 is 12%, then increased by 196.6% in
2012, declined again by 63% in 2013 and 34% 2014.
Circumstances like the above is not a favorable situation, due to higher operating expenses than in
revenue. In addition, the company's sales also decreased although not so signicant. Operating expenses
affect the operating prot generated by the company. The smaller the operating expenses, the operating
income will be higher.
Vice versa, when the load becomes larger corporate operations, the operating prot generated by the
company will decrease.
Naturally, the company expects their income is higher than the load operation company. Due to
the higher revenue and the smaller operations, the greater the operating prot produced by the
company.
 2009 2010 2011 2012 2013 2014

PT Fajar Surya (x Rp1 Billion)

Items
Net Sales 2.733 3.386 4.124 3.988 4.961 5.457
Period Cost 112 135 180 170 228 253
Cost of Sales 2.196 2.739 3.512 3.506 4243 4.880
Operating Expense 2.308 2.874 3.692 3.676 4.471 5.133
Non-operating Expense 37 131 250 300 819 198

Items 2009 2010 2011 2012 2013 2014

Revenues 100 124 151 146 182 200
Period Cost 100 121 161 152 204 226
Cost of Sales 100 125 160 160 193 222
Operating Expense 100 125 160 159 194 222
Non-operating Expense 100 354 676 811 2214 535

From the table above, it can be seen that the PT Fajar Surya has an income lower than the
company's operating expenses. Similar with the graph above.
The company's revenue increased by 24% in 2010 from 2009, and then increased back in 2011 by
22%, and decreased by 3.3% in 2012. While in 2013 and 2014 increased by
25% and 9.9 %. So PT Fajar solar only experienced one time reduction in income during their period of 6
years, is in 2002.
On the other hand, period cost operating expenses also increased every year except in 2012. In
2010, operating expenses period cost increased by 21%. In 2011 increase again by 33%. It was only in
2012 decreased by 3.9%. But in 2013 a signicant increase that number by 34%. The latter is in the year
2014 increased by 10.7%.
For the cost of sales, PT Fajar Surya more increased in every year, only from the year
2011 to the year 2012 no changes are less visible. It can be seen that in 2010 there is an increase of 25%,
then the next year increased by 28%. In the next year there is no increase is so signicant. For the year
2013 there is an increase of 21% and in 2014 there was an increase of 15% from the previous year.
Operating expense for PT Fajar Surya increase and decrease an uncertain. For the year 2010 PT
Fajar Surya increased by 25%, then there is an increase of 28% in 2011. In 2012 a decrease of 0.6% and
then increase in 2013 and 2014 by 3% and 14%.
Non-operating expenses for the PT Fajar Surya has increased very sharply. That is equal to 254% in
2010, 91% in 2011, 20% in 2012, 173% 2013. There is only one decrease in non- operating expense in the
last 6 years, which in 2014 by 76% from the previous year.
From the analysis above, we can see that the increase in operating expenses faster than the increase
in revenue. It is not good for the company. There was only one year where the company's revenue was
higher than operating expenses, which at the time in 2010. That's what is actually expected by the
company. Because the situation is more favorable for the company. The circumstances in which the burden
companies operation is higher than the revenues will affect the operating prot generated by the company.
The larger the income and the smaller operating expenses will increase prots for the company's
operations.
 2009 2010 2011 2012 2013 2014

PT Indah Kiat (x USD 1 Million)

Items
Net Sales 1,773 2,510 2,560 2,518 2,652 2,635
Period Cost 180 249 249 258 277 262
Cost of Sales 1,598 2,070 2,232 2,190 2,201 2,181
Operating Expense 1,778 2,319 2,481 2,448 2,478 2,443
Non-operating Expense -119 -117 -56 -37 33 0

Items 2009 2010 2011 2012 2013 2014

Revenues 100 142 144 142 150 149
Period Cost 100 138 138 143 154 146
Cost of Sales 100 130 140 137 138 136
Operating Expanse 100 130 140 138 139 137
Non-operating Expense 100 98 47 31 -28 0

From the data and graphs presented above, we can know that half of the sixth year, PT Indah
tips have a higher income compared to operating expenses.
Revenues in 2010 increased by 42% from 2009, then increased by 1.4% in 2011. In
2012 revenues decreased by 1.4% and increased again in 2013 by 5.6%. In 2014 revenues only
increased by 0.6%.
Period cost also increased and decreased each year, though not very signicant. In 2010, Period
cost increased by 38%, but did not change in 2011. Period cost remained the same is equal to 138. In the
next year, the year 20112 operating expenses rose by
3.6%, apad 2013 Period cost increase again by 7.7%. Whereas in 2014, Period cost decreased by
5.2%.
For the cost of sales PT Indah Kiat experience an uncertain changes every year.
An increase of 30% in 2010, and by 8% in 2011, and a decrease of 2% in 2010, after it was raised by 0.7%
in 2013 and the latter decreased by 1.4% 2014.
Operating expense for PT Indah Kiat in 2010 and 2011 increased by 30% and 8%. Whereas in
2012 decreased by 1%. And in 2013 an insignicant increase of 0.7%. in 2014 have decreased by 1%.
On the other hand, PT Indah Kiat have a non-operating expense, which continued to decline, by 2%
in 2010, then 52% in 2011, 34% in 2012, 190% in 2013 and the last by 96%
2014.
Circumstances such as the above are favorable conditions for the company, where the company has
a higher income than in operating expenses. That means, the operating prot generated by the company
will also increase.
 2009 2010 2011 2012 2013 2014

Common-Size Financial Statement Analysis

Items
Net Revenues 855 1,339 1,379 1,322 1,222 1,195
Cost of good sold 700 1,117 1,146 1,106 1,073 1,056
Gross Prot 155 222 233 216 149 139
Selling 38 64 70 78 69 76
General and administrative 41 78 58 53 49 41
Operating income 76 80 105 85 31 22
Other expense-net 25 17 15 44 16 11
Income before income taxes 51 63 90 41 15 11
Income tax benet (12) (16) 20 7 12 9
Net income 39 47 110 48 27 20

Common Sizes
Net Revenues 100.0 100.0 100.0 100.0 100.0 100.0
Cost of good sold 81.9 83.4 83.1 83.7 87.8 88.4
Gross Prot 18.1 16.6 16.9 16.3 12.2 11.6
Selling 4.4 4.8 5.1 5.9 5.6 6.4
General and administrative 4.8 5.8 4.2 4.0 4.0 3.4
Operating income 8.9 6.0 7.6 6.4 2.5 1.8
Other expense-net 2.9 1.3 1.1 3.3 1.3 0.9
Income before income taxes 6.0 4.7 6.5 3.1 1.2 0.9
Income tax benet (1.4) (1.2) 1.5 0.5 1.0 0.8
Net income 4.6 3.5 8.0 3.6 2.2 1.7

In 2014, PT Tjiwi Kimia earned arround 1.7 cents per dollar of sales, in contrast to almost
4.6 cents in 2009, a drop of 2.9 cents per dollar of sales. The decrease was mainly due to a decrease in
selling price of Company's products. Prima facie, this is not a good sign because it suggest the inability of
the company to pass its cost on to its costumer. Income tax benet decreased by less than 1% of sales in
2014. Between 2009 and 2014 PT Tjiwi Kimia's income before taxes dropped by 5.1% of revenues, from
6% to 0.9% . For selling, general and administration expense, as a proportion of sales revenue, selling
expense has been increasing steadily by almost 2% since 2009 and general and administration expenses
have been decreasing by 1.4%. Other expense have decreased by 2% since 2009, with much of the decrease
occuring in 2013.
 Liquidity
PT Tjiwi Kimia PT Fajar PT Indah
2012 2013 2014 Surya Kiat

Current Ratio 2.407 2.220 1.900 0.977 1.381

Acid-test Ratio 0.694 0.413 0.484 0.478 0.001
Cash Ratio
Collection Period 23.764 41.542 35.763 61.734 0.018 days
Days to sell inventory 56.749 121.237 117.658 54.549 146.679 days

· Current Ratio is the ratio that indicates the company's ability to pay short-term debt by using
short-term assets. In 2014, which means that the company can pay 1.900 dollars for every 1 dollar of
debt owned. In 2013 means that the company can pay
2.220 dollars for every 1 dollar of debt owned. In 2012, meansthe company can pay
2.407 dollars for every 1 dollar of debt owned. But overall the current ratio of PT Tjiwi still higher
than PT Fajar Surya and PT Indah Kiat.
· Acid Quick Ratio is the ratio that indicates the company's ability to pay its short - term bonds
by using current assets do not include inventories in it. In 2014 means that the company can pay 0.484
rupiah for every 1 dollar of short-term bonds held. In 2013 means the company can pay 0.413 rupiah
for every 1 dollar of short-term bonds held. In
2012 means that the company can pay 0.694 rupiah for every 1 dollar of short-term bonds held. But
there is no different with PT Fajar Surya that have acid quick 0.478 in
2014 but there is big difference with PT Indah Kiat that have acid quick 0.001.
· Collection Period is used to measure the average period it takes to collect receivables (in days).
If the resulting number is getting smaller show better results. Whether a collection period is good or
bad depends on the credit terms allowed by the company. PT Tjiwi Kimia' credit terms are 120days
then the collection period in 2014 is 36 days, so the collection period of the company is very good.
Compare with PT Fajar Surya that has 61 days collection period. So, the collection period of PT Tjiwi
Kimia is better than PT Fajar Surya.
Days to sell Inventory is away to measure the average time required for a company to convert
its inventory into sales. A small number of days sales in inventory indicates that a company is more
efcient at selling of its inventory, while a large number indicates that it may have invested to much
in inventory, and may even have absolute inventory on hand. A large number may also mean that
management has decided to maintain high inventory levels in order to achieve high order fulllment
rates. In 2014 PT Tjiwi Kimia has 118 days to sell inventory, it means that PT Tjiwi Kimia has invest
to much in inventory. Compare with PT Fajar Surya, days to sell inventory of PT Fajar Surya is more
efcient on 54 days but inefcient with PT Indah Kiat that has 146 days to sell inventory.
 Capital Structure and Solvency
PT Tjiwi Kimia PT Fajar PT Indah
2012 2013 2014 Surya Kiat

Total debt to equity 2.464 2.263 1.911 2.393 1.707

Long term debt to equity 1.787 1.587 1.308 1.275 1.209
Debt Ratio
Times interest earned 1.940 1.905 2.022 1.582 2.918

Debt to Equity Ratio is the ratio shows how much money creditors than the company's capital. In
2014, Debt to Equity ratio gures showed 191.1 % which means that the composition of the liabilities
for the company's capital amounted to 191.1 %. It's lower than 2012 and 2013 that have total debt to
equity 246.4% in 2012 and 226.3% in 2013. Compare with PT Fajar surya that has total debt to
equity 239.3% and PT Indah Kiat
170.7%.
Long term debt to equity is a capitalization ratio comparing long-term-debt to shareholder
equity. In risk analysis, a way to determine a company's leverage. The greater a company's leverage, the
higher ratio. Generally, companies with higher ratios are thought to be more risky because they have
more liabilities and less equity. Long term debt to equity for PT Tjiwi Kimia Tbk in 2102 is 1,787. It is
revealing that in 2012 $1,787 of long term debt nancing to each $1 of equity. In 2013 it is amount
1,587 and in 2014 it is amount
1,226. There is a decrease for each year, and its means that PT Tjiwi Kimia Tbk have a good increase in
business activity.
If we compare PT Tjiwi Kimia Tbk with PT Fajar and PT indah, we can see that PT Tjiwi Kimia
Tbk have a higher ratio between them. It mens that PT Tjiwi Kimia Tbk is more risk that PT Fajar and
PT Indah.
Times interest earned is a measure of a company's ability to honor its debt payments. It is the
ratio of a company's earnings before interest to its interest payment. Failure to pay interest will cause a
creditor to take legal action and possibly lead to bankruptcy . The interest of PT Tjiwi Kimia Tbk closed
1.940 in 2012, 1.905 in 2013 and 2.022 in 2014 times its xed (interest) commitments time . PT Tjiwi
Kimia Tbk closing its interest expense with a relatively low security limits . This ratio indicates that PT
Tjiwi Kimia will have problem meeting its xed charge commitments. In sum, given PT Tjiwi Kimia's
low (and unstable) protability, its solvency risk is high. This ratio analysis reinforce the conclusion is
that the company would run into trouble if it tries to borrow additional funds .
If we compare PT Tjiwi Kimia Tbk with Pt Fajar and PT Indah, we can see that PT Indah have
highest ratio in times interest earned. It menas that PT Indah have a good opportunity to borrow
additional funds to creditor. And the lowest is PT Fajar Surya, it menas that PT Fajar Surya have
problem to boorow additional funds to creditor.
 Return on Investment
PT Tjiwi Kimia PT Fajar PT Indah
2012 2013 2014 Surya Kiat

Return on Assets 3.6% 3% 5.20% 2.90% 1.60%

Return on common equity 4.6% 3.4% 2.40% 5.40% 5.40%

ROA shows the rate of return on asset utilization company . In 2014, ROA gures show 5.20 %,
which means that the company earned 5.20 % of every dollar asset utilization. In 2013, ROA gures
show 3.0 %, which means that the company earned 3.0% of every dollar asset utilization. In 2012, ROA
gures show 3.60 %, which means that the company earned 3.60% of every dollar asset utilization. If
we compare PT Tjiwi Kimia with PT Fajar and PT Indah we can identied that PT Tjiwi Kimia is better
than PT Fajar Surya and PT Indah in this term because PT Tjiwi Kimia have the highest return on assets.
ROE shows the return of a shareholder 's investment in the company. In 2014, ROE
gures show 2.40 %, which means that shareholders obtain a refund at 2.40% of every one dollar
investment in companies. In 2013, ROE gures show 3.4%, which means that shareholders obtain a
refund at 3.40% of every one dollar investment in companies. In
2012, ROE gures show 4.6%, which means that shareholders obtain a refund at 4.6% of every one
dollar investment in companies. If we compare PT Tjiwi Kimia with PT Fajar and PT Indah we can
identied that PT Fajar Surya and PT Indah Kiat is better in this term because the return on common
equity of PT Tjiwi Kimia always lowest than the other competitors.

Operating Performance
PT Tjiwi Kimia PT Fajar PT Indah
2012 2013 2014 Surya Kiat

Gross prot margin 16.4% 12.2% 11.60% 10.60% 17.20%

Operating prot margin (prefax) 7% 3% 2% 10% 7%
Net prot margin 2.6% 2.2% 1.70% 1.60% 4.80%

Gross Prot Margin is a ratio that shows how much margin that allows the company to cover the
company's expenses and still be able to obtain prot. In 2014 , gross prot margin ratio indicates the
number 11.60 %, which means that the company has a 11.60 % margin that can be used to cover the
load and still generate prot. If the gross prot margin low, it means that the company has more
liabilities. In the last 3 years, PT Tjiwi Kimia has lower gross prot margin in 2014. But it's better than
PT Fajar Surya that has gross prot margin 10.60% but worse than PT Indah Kiat that has gross prot
margin 17.20%.
 Operating Prot Margin indicates the company prot after deducting the cost of the product
and sales support costs . Operating Prot Margin in 2014 was 2 % it's bad because the prot is lower
than 2012 and 2013. Compare with PT Fajar Surya and PT Indah Kiat that have prot reach 10% and
7%.
Net Prot Margin is the ratio that indicates how much prot after tax generated every 1 dollar
of sales . In 2014 , the net prot margin ratio indicates the number is 1.7
% which means that the company gets 1.7 % prot after tax of every 1 dollar of sales by the
company. It's bad because the net prot is lower than 2012 and 2013. Compare with PT Fajar Surya
and PT Indah Kiat that have prot reach 1,6% and 4.8%.

Asset Utilization
PT Tjiwi Kimia PT Fajar PT Indah
2012 2013 2014 Surya Kiat

Cash Turnover 13.966 8.026 9.273 77.243 2,709.452

Account receivable turnover 3.787 2.166 2.517 5.831 19,664.455
Inventory turnover 6.344 2.969 0.765 6.600 2.454
Working capital turnover 2.048 1.750 2.052 21.542 5,166.739
PPE turnover 2.241 1.048 1.041 1.450 588.704
Total asset turnover 0.503 0.462 0.450 0.968 0.396

generation of sales revenue. A higher cash turnover ratio is generally better than a lower
one. A lower ratio may indicate the inefcient use of working capital. PT Tjiwi Kimia's cash turnover
ratio from 2012 to 2013 decreases quite much as 5.94 and from 2013 to 2014 increase as much as
1.247. Compared to another companies, PT Tjiwi Kimia's cash turnover ratio cash turn over is in the
below. PT Tjiwi Kimia has 9.273, PT Fajar Surya has
77.243, and PT Indah Kiat has 2,709.452. It implies that every 1 dollar of cash and equivalents will
generates 9.273 of PT Tjiwi Kimia's sales.
Account receivable turnover is the number of times per year that a business collects its average
accounts receivable. The ratio is intended to evaluate the ability of a company to efciently issue credit
to its costumers and collect funds from them in a timely manner. PT Tjiwi Kimia's account receivables
turnover ratio from from 2012 to 2013 decreases as much as 1.621 and from 2013 to 2014 makes little
increase which is 0.351. But compared to PT Fajar Surya and PT Indah Kiat, PT Tjiwi Kimia's account
receivable ratio is low. PT Tjiwi Kimia has 2.517, PT Fajar Surya has 5.831, and PT Indah Kiat
has
19,664.455.nd from 2013 to 2014 makes increases which is 0.302. Comparing to another 2 companies,
PT Tjiwi Kimia's working capital turnover ratio is the lowest. PT Tjiwi Kimia has
2.052, PT Fajar Surya has 21.542, and PT Indah Kiat has 5,166.739.
 Inventory turnover Ratio is the ratio indicates how many times the nished goods inventory can
be sold during the period. The inventory turnover ratio also is a key measure for evaluating just how
efcient management is at managing company inventory and generating sales from it. PT Tjiwi Kimia's
inventory turnover ratio from 2012 to 2014 always decerases. PT Tjiwi Kimia's cash turnover ratio from
2012 to 2013 decreases much as 3.375 and from 2013 to 2014 decreases as much as 2.204. PT Tjiwi
Kimia's inventory turnover ratio is the lowest between PT Fajar Surya and PT Indah Kiat. PT Tjiwi
Kimia has 0.765, PT Fajar Surya has 6.600, and PT Indah Kiat has 2.454. Every 1 dollar of PT Tjiwi
Kimia's iventory turnover can generates 0.765 of sales.
Working capital turnover is a measurement comparing the depletion of working capital to the
generation of sales over a given period. This provides some useful information as to how effectively a
company is using its working capital to generate sales. Working capital is current assets minus current
liabilities. A high turnover ratio indicates that management is being extremely efcient is using a rm's
short-term assets and liabilities to support sales. Conversely, a low ratio indicates that a business is
investing in too many accounts receivable and inventory assets to support its sales, which coud
eventually lead to an excessive amount of bad ebts and obsolete inventory. PT Tjiwi Kimia's working
capital turnover ratio from from 2012 to 2013 decreases as much as 0.398 and from 2013 to 2014
makes increases which is 0.302. Comparing to another 2 companies, PT Tjiwi Kimia's working
capital turnover ratio is the lowest. PT Tjiwi Kimia has
2.052, PT Fajar Surya has 21.542, and PT Indah Kiat has 5,166.739.
Fixed Asset (PPE) Turnover Ratio is a ratio that shows a lot of sales that can be gained from
every 1 dollar of xed assets. From 2012 to 2014, PT Tjiwi Kimia's PPE turnover ratio always
decreases. It implies that the Fixed Asset Turn Over ratio of PT Tjiwi Kimia in
2014 indicates the number 1,041, which means that the company earned 1,041 every 1 dollar sales of
xed assets owned. Comparing to another 2 companies, PT Tjiwi Kimia's PPE turnover ratio is the
lowest. PT Tjiwi Kimia has 1.041, PT Fajar Surya has 1.450, and PT Indah Kiat has 588.704.
Total Asset Turnover Ratio is a ratio that shows a lot of sales that can be gained from every 1
dollar of all assets owned. From 2012 to 2014, PT Tjiwi Kimia's total asset turnover ratio always
decreases. There were total asset turnover ratio of PT Tjiwi Kimia in 2014 indicates the number 0.450,
which means that the company earned 0.450 for every 1 dollar sales of all assets owned. Comparing to 2
another companies, PT Tjiwi Kimia has second position which PT Tjiwi Kimia has 0.450, PT Fajar
Surya has 0.968, and PT Indah Kiat has 0.396.
 Market Measures
PT PT Fajar PT Indah
Tjiwi Surya Kiat
Kimia
2014 2014 2014
Price-to-earnings 50.600 14.282 4.345
Earnings yield 1.98% 7% 23%
Dividend yield 1.98% 2% 2.50%
Dividend payout rate 100.00% 28.60% 10.90%
Price to book 1.451 0.323 2,272.727

Price/Earnings Ratio show assessment against a stock market by revenue thus shows how much
investors are willing to pay for each one dollar of revenue. Comparing to another 2 companies, PT Tjiwi
Kimia's price-to-earnings ratio is the biggest one between PT Fajar Surya which has 14.282 and PT
Indah Kiat which has 4.345. In 2014, the
gures showed 50.600 PER of PT Tjwi Kimia, which means that investors are willing to pay as much
as 50 600 of every 1 dollar of income.
Earnings yield is a way to measure returns, and it helps investors evaluate whether those returns
commensurate with an investment’s risk. The earnings yield is used by many investment managers to
determine optimal asset allocation. Compared to another companies, PT Tjiwi Kimia’s earning yield
ratio cash turnover on the lowest level. PT Tjiwi Kimia has 1.98%, PT Fajar Surya has 7%, and PT Kiat
has 23%.
Dividend yield is represented as a percentage and can be calculated by dividing the dollar value
of dividends paid in a given year per share of stock held by the dollar value of one share of stock. The
dividend yield is used by investors to show how their investment in stock is generating either cash ows
in the form of dividends or increases in asset value by stock appreciation. Compared to another
companies, PT Tjiwi Kimia's earnings yield ratio cash turn over is in the below. PT Tjiwi Kimia has
1.98%, PT Fajar Surya has 2%, and PT Indah Kiat has 2.5%.
Dividend payout rate ratio provides an indication of how much money a company is returning to
shareholders, versus how much money it is keeping on hand to reinvest in growth, pay off debt or add to
cash reserves. Comparing to another 2 companies, PT Tjiwi Kimia's price-to-earnings ratio is the biggest
one between PT Fajar Surya which has 28.60% and PT Indah Kiat which has 10.90%.
Price to book ratio measures a company's market price in relation to its book value. The ratio
denotes how much equity investors are paying for each dollar in net assets. Price to book value tells
whether investors in general value the company above, at or below the face value of the company's
assets as they appear in its nancial reports. Compared to the other 2 companies, PT Tjiwi Kimia's price
to book value in 2014 is in the middle. PT Tjiwi Kimia has 1.451, PT Fajar Surya has 0.323, and PT
Indah Kiat has 2,272.727.
 Market Measures

Rp3.000 PT Tjiwi Kimia Tbk

Rp2.500

Rp2.000

Rp1.500

Rp1.000

Rp500

Rp0

Q1 Q2 Q3 Q4

During the Year 2012, There is an increase from quarterly 1 ( Q1 ) ON TO Q2 from Rp2.400 to
Rp2.450 to Rp50 , but from Q2 until Q4 Always Happens Until the decline of Rp200 to Rp270.
However in the year 2013 , No changes on Q1 and Q2 WITH Shares Fixed price Rp2.000 while
Q2 Q3 ON TO Occurs Impairment of shares amounting to Rp210, Q3 and Q4 ON TO There was a
slight increase in stock value of Rp10 .
In 2014, Always Happen Impairment of Shares From Until Q4 Q1 amounted to USD
60, USD 605 and USD 115. Of the decrease in value of the CAN concluded that a signicant
decline is From The paling TO Q3 Q2 amounted to Rp605 .

Rp3.000
PT Fajar Surya
Rp2.500

Rp2.000

Rp1.500

Rp1.000

Rp500

Rp0

Q1 Q2 Q3 Q4

During the year 2012, the price value of the shares of PT Fajar Surya always show the
uctuative rate starting from Q1 to Q2 sligtly increase about Rp 40, Q2 to Q3 decrease about Rp 80,
and Q3 to Q4 increase to Rp 120.
In 2013, the stock price of PT Indah Kiat always shows the share price decrease signicantly the
amount of Rp 150 in Q1 to Q2, Rp 425 from Q2 to Q3, and Rp 100 from Q3 to Q4 .
In 2014, there is uctuative rate in the value of shares. Starting decreasing from Q1 to Q2 about
Rp 575, Q2 to Q3 increase about Rp 225, and there is no change in Q3 to Q4.
 Rp1.600 PT Indah Kiat
Rp1.400
Rp1.200
Rp1.000
Rp800
Rp600
Rp400
Rp200
Rp0

Q1 Q2 Q3 Q4

During the year 2012 , the price value of the shares of PT Indah Kiat always show the rate of
decline starting from Q1 to Q2 amounting to Rp 110 , Q2 to Q3 amounted to USD
30 , and Q3 to Q4 amounting to Rp 340 which can be summed up as a decrease in stock value lows
during the period 2012 to the stock price of Rp 680 .
In 2013 , the stock price of PT Indah Kiat always shows the share price increase signicantly the
amount of Rp 240 in Q1 to Q2 , USD 90 from Q2 to Q3 , and Rp 190 from Q3 to Q4 .
In 2014 , always been a decline in the value of shares . However, a decrease in stock value and
tersignikan lowest occurred in Q2 to Q3 Rp 285 .