BUSINESS ADMINISTRATION, SHARES, AND DIVIDEND AT HM SAMPOERNA

INDONESIA TBK

This paper is prepared to fulfill the assignments of English courses

COMPILED BY:

Abiyansyah Zakariya Yahya 220910301128

Andika Dwi Saputra 220910202136

Muhammad Izzat Hidayat 220910202130

PROGRAM STUDI ILMU ADMINISTRASI BISNIS

FAKULTAS ILMU SOSIAL DAN POLITIK

UNIVERSITAS JEMBER
2022
 CHAPTER I

INTRODUCTION

Background of the Paper

Currently investing is not a foreign thing in the ears of the public. Investment is the
activity of investing a number of funds to be developed within a predetermined period of time
in the future to obtain a profit or profit. Investment is one way to fight inflation. Investment
can be said to be putting money or capital for profit or interest by buying property, gold,
foreign exchange, etc. and is expected to be sold at a higher price in the future. Investment is
also one of the conditions to improve the country's economy. The more investors in a country,
it means that the country is safe and stable to be used as a place to invest.

Investment can be started early by recognizing and understanding the important

elements of investment and then adjusting it to our conditions, by investing early on we can
protect assets from inflation as early as possible which causes a decrease in the purchasing
power of our money. One of the considerations for investing is capital / funds, we have to set
aside funds in daily life, and look for small amount of investment funds. In addition to capital,
we must first consider the direction and purpose of investment. Investments must have clear
objectives in order to maximize investment properly and take place in accordance with what
we want, namely to earn profits.

There are many advantages that can encourage us to invest, one of which can
overcome inflation. Inflation is something that will continue to happen and we cannot avoid.
We may not have realized it but the value of money we have now will be different or even fall
in the future.

Investment is an investor's effort to get results that will be consumed in the future.
Investments that provide a high rate of return will certainly provide a high risk as well. The
high and low risk of an instrument, especially in the Indonesian capital market, is strongly
influenced by the economic and political factors of a country as well as the condition of the
company itself. Therefore, in making a decision to invest, it is better for investors to do an
analysis first of the investment instrument to be chosen. This analysis is carried out to
minimize the existing risks.

The risks faced in investing can be in the form of systematic risk and unsystematic
risk. Systematic risk is impossible to avoid because this risk is a form of economic change that
cannot be controlled by the company. Meanwhile, we can minimize unsystematic risk by
diversifying. Investing in stocks has a high level of uncertainty so the risk is also high. The
analysis that must be done by investors includes fundamental analysis and technical analysis.
In conducting fundamental analysis, investors need to look at the condition of the company
itself, as well as the economic conditions in which the company operates. As for technical
analysis, investors can see the trend of the stock price to be selected.

Macroeconomic conditions can affect stock prices in a capital market. The impact of
the crisis in Indonesia which caused macroeconomic conditions to become uncertain also had
an impact on the condition of the capital market in Indonesia. Interest rate movements have an
impact on consumers' desire to invest. An increase in interest rates will trigger people to tend
to invest in the form of deposits, rather than investing in the capital market which has a higher
risk.Inflation as an unpredictable macroeconomic factor also has an impact on stock
performance. An increase in inflation will cause overall prices to rise causing secondary needs
(complementary goods) and tertiary needs (luxury goods) to decrease, because people will
tend to meet primary needs first so that stock prices in hotel and tourism service companies
will be more affected than prices. share of the consumer goods industry sector.
 CHAPTER II
DISCUSSION
2.1 Company Overview
PT Hanjaya Mandala Sampoerna Tbk. or known as PT HM Sampoerna Tbk. is
the largest cigarette company in Indonesia and has been established since 1913. This
cigarette company has played an important role in developing the Indonesian tobacco
industry for more than a century.
This cigarette company started when an immigrant from China named Liem
Seeng Tee came to Surabaya to do business in Indonesia. Liem Seeng Tee first came
into contact with cigarettes shortly after marrying his wife Tjiang Nio. Liem Seeng Tee
works for a company in Lamongan as a cigarette mixer and roller. Six months later,
Liem Seeng Tee quit his job and opened a small kiosk selling daily necessities and
tobacco products.
In 1913, their business was inaugurated under the name Handel Maatschappij
Liem Seeng Tee. In 1916, using his wife's savings, Liem Seeng Tee purchased large
quantities of tobacco blends from a bankrupt tobacco merchant. This tobacco purchase
was the beginning of the success of the Liem family's cigarette business. Then, Liem
Seeng Tee created Dji Sam Soe, a product that became known as the 'King of Kretek'
until today.
Sampoerna officially became the first cigarette company in Indonesia to sell its
shares on the stock exchange. With this decision, since August 27, 1990, this cigarette
company has the status of a Public Limited Liability Company (PT Tbk.). The number
of shares sold was 27 million shares at Rp. 12,600 per share. In 2000, Michael
Sampoerna, the fourth generation, became the CEO of PT HM Sampoerna Tbk. and
took the company to a new level, where at that time, Sampoerna's market share
increased from 18% to 25%.
After being established and managed for generations by four generations of the
Sampoerna family, in 2005 the majority share ownership was sold to the world's
largest cigarette company from the United States, namely Philip Morris International
(PMI). Ownership of PT HM Sampoerna Tbk. the majority moved after PMI bought a
40% stake for 5.2 billion US dollars on March 14, 2005. Now, PT HM Sampoerna
 Tbk. has become a subsidiary of PT Phillip Morris Indonesia (PMID) with an affiliate
of PT Phillip Morris International (PMI).
Now the Sampoerna company has managed more than 25,000 permanent
employees in the core company and Sampoerna subsidiaries. In addition, Sampoerna
also cooperates with 38 Cigarette Production Partners with factories located throughout
the island of Java and employs around 39,200 workers in the production of hand-rolled
kretek cigarettes. Sampoerna sells and distributes its cigarette products through 114
branch offices, sales outlets and distribution centers throughout Indonesia.
2.2 Dividen and Share Price Information

In 2019, HM Sampoerna's cigarette sales volume fell 2.9% to 98.5 billion

cigarettes, but still maintained its leadership in the tobacco industry with a market
share of 32.3 percent. HMSP's own share price has fallen by -45.9 over the past year
although the company's net profit is still recorded to have grown slightly by 1.35%
from Rp 13.5 trillion in 2018 to Rp 13.7 trillion in 2019. So that HMSP's current
shareholders are more rely on dividends with yields reaching 6.77% gross or 6.09%
net, if using the closing price of HMSP shares on Wednesday 20 May 2020.
 In the last year, HMSP's share price has dropped quite significantly until it
closes on Monday 18 May 2020 at a price of Rp 1,865. Thus, if the dividend per share
distributed is Rp. 119.8 per share, the dividend yield is recorded at 6.42% gross, or
5.78% net. Fairly good, still above the yield on deposits for one year. The total
dividends distributed from net profit in 2019 reached Rp 13 trillion, where at the end of
2019 PT HM Sampoerna Tbk managed to record a net profit of 13.72 trillion so that it
can be said that the dividend payout ratio reached 94.75%. HMSP's net profit margin in
2019 still remained in the double digits of 12.94% where this was achieved thanks to
the efficiency carried out by HMSP Management, as explained by the President
Director of HMSP Mindaugas Trumpaitis. Return on Equity (ROE) from HMSP was
also recorded to be still very high up to 38.46% in 2019 so that HMSP was able to
maintain its net profit amidst the declining and limited challenges of the cigarette
industry. HMSP's Performance in the First Quarter of 2020 In the midst of the Covid-
19 pandemic that paralyzed the domestic consumption sector, HMSP was still able to
record a thin net profit growth of 1.1% from Rp 3.29 trillion in the first quarter of 2019
rising to Rp 3.32 trillion in the first quarter of 2019. the same this year. Although there
was a -0.49% decrease in sales from Rp 23.8 trillion in the first quarter of 2019 to Rp
23.69 trillion in the first quarter of 2020. This was due to almost all company expenses
such as cost of goods sold, selling expenses and general administrative expenses.
successfully lowered. It was recorded that in the first quarter of 2020, HMSP's Net
Profit Margin (NPM) was still solid at 14% with an annualized Return on Equity
(ROE) of 35.21%.

The Local Government Regulation was ratified by the Minister of Home

Affairs in Decree No. Pem.10/5/26-18 dated January 31, 1977 and announced in the
Regional Gazette of the Level I Province of East Java in 1977 Series C No. I/c dated
February 1, 1977. The Regional Regulation underwent several changes, and the last
one was amended by Regional Regulation No. 11 of 1996, dated December 30, 1996
which was passed by the Minister of Home Affairs by Decree No. 584.35-280 dated
April 21, 1997. With the ratification of Regional Regulation No. 1 of 1999 by the Dprd
of East Java Province on March 20, 1999, and by the Minister of Home Affairs by
Decree No. 584.35-317 dated April 14, 1999, the legal form of the East Java Regional
Development Bank was changed from a Regional Company to a Limited Liability
Company.

Along with economic developments and in order to meet the requirements as a

Regional Champion BPD, one of which is to strengthen capital, changes were made to
the Company's Articles of Association based on the Deed of Statement of Resolutions
of the Extraordinary General Meeting of Limited Liability Companies Number 89
dated April 25, 2012, made by Notary Fathiah Helmi, S.H., in Jakarta who had
obtained approval from the Ministry of Law and Human Rights based on Decree
Number AHU-22728. AH.01.02.Tahun 2012 dated April 30, 2012, has been registered
in the Register of Companies in accordance with the Limited Liability Company Law
with Number AHU-0038044. AH.01.09 of 2012 dated April 30, 2012 and based on the
Decree of Bapepam dated June 29, 2012 was declared effective for the registration
statement and changed its name to PT Bank Pembangunan Daerah Jawa Timur Tbk..

The Bank began to carry out operational activities in accordance with the
Decree of the Minister of Finance of the Republic of Indonesia No. BUM 9-4-5 on
August 15, 1961. Meanwhile, the Sharia Business Unit (UUS) was established and
began operating since August 21, 2007 in accordance with the letter of Approval of the
 Principles of Establishment of UUS from Bank Indonesia No. 9/75/DS/Sb dated April
4, 2007. The last parent entity of the Bank is the Provincial Government of East Java.

2.3 Vision and Mission

Vision PT HM Sampoerna Tbk. (“Sampoerna”) is contained in the “Three
Hands Philosophy”. This philosophy describes the business environment and
Sampoerna's role in it. Each of the three "Hands", representing adult smokers,
employees and business partners, as well as the wider community, is a party that
Sampoerna must embrace to achieve its vision of "Becoming the Most Leading
Cigarette Company in Indonesia".
Its other missions are:
1. Producing cigarettes high quality cigarettes at a reasonable price for adult
smokers Sampoerna is fully committed to producing high quality cigarettes
at a reasonable price for adult consumers. This is achieved through offering
relevant and innovative products to meet dynamic consumer tastes.
2. Providing compensation and a good working environment for employees
and fostering good relations with employees' business partners are
Sampoerna's most important assets. Good compensation, work
environment and opportunities for development are the main keys to
building employee motivation and productivity. On the other hand, our
business partners also play an important role in our success, and we
maintain close cooperation with them to ensure their vitality and resilience.
3. Contributing to the wider community Sampoerna's success is inseparable
from the support of communities throughout Indonesia. In giving
contributions, we focus on poverty alleviation activities, education,
environmental preservation, disaster management and employee social
activities.
2.4 Organizational Structure
2.5 Company Administration
In general, business process management (BPM) is part of operations
management that examines company performance improvements to achieve optimally
managed company business processes. Likewise with business process management
which will be discussed in the cigarette sub-sector manufacturing company, namely PT
HM Sampoerna Tbk. Effective and efficient Business Process Management is certainly
expected to be implemented by PT HM Sampoerna in order to generate competitive
values for the company. Business processes that are well managed will be able to grow
opportunities. Although the implementation of business process management does not
always run smoothly. In the implementation of a business process there may be
obstacles and other errors that cannot be anticipated beforehand. In 2012, Sampoerna
had a market share of 35.6% in the Indonesian cigarette market, based on the results of
the 2012 Nielsen Retail Audit Results Full Year. with strong brands and the best
employees, while continuing to innovate for a brighter future. PT Hanjaya Mandala
Sampoerna Tbk. The Company sells and distributes cigarettes through 73 sales offices
throughout Indonesia.

2.6 How to buy shares of PT Sampoerna

How to buy PT Sampoerna HMSP shares is important for beginners, we will

discuss. The opportunity to invest in buying and selling shares is now very easy online.
How to buy Sampoerna shares begins by contacting a securities broker, downloading
the application, registering a stock account, searching for the HMSP stock code,
making a deposit, Sampoerna fundamental and technical analysis, buying shares,
checking the portfolio of Sampoerna shares. In fact, there are many securities that
provide online trading facilities on mobile phones, such as IPOT, Magic, Mirae,
Mandiri Sekuritas, Stockbit Seed and others.

2.7 Benefits For Society

1. First, this investment has a positive correlation with the country's infrastructure
development. An increase in GDP will support the government's development efforts,
while the government will be more active in building infrastructure to support and
attract investors.
2. Second, this investment will also grow the business climate. The more investments
or investments made, the more new businesses will emerge. Such as MSMEs, medical
devices, and housing which are some of the growing business sectors

3. Third, the number of emerging businesses will create more job opportunities, which
will clearly support the growth of consumer purchasing power and household
consumption.
 CHAPTER III

CONCLUSION

Investment is the activity of investing a number of funds to be developed in a

predetermined period of time in the future to earn a profit or profit. Investment is one way to
fight the inflation rate. Investment is also one of the conditions to improve the economy
country. The more investors in a country, it means the country is a safe and stable situation to
be used as a place to invest.

By investing early, we can as early as possible protect the value of assets from inflation
which causes a decrease in the purchasing power of our money. Not only that, investment is
also able to help meet future needs. The earlier we invest, the more prepared we are to face
challenges and risks that may arise in the future.
 BIBLIOGRAPHY

Girsang,Yossy. 2020. Jadwal Dividen Saham HMSP atau HM Sampoerna 2020.

Diakses di website : https://www.tagar.id/jadwal-dividen-saham-hmsp-atau-hm-sampoerna-
2020

Kristianto, Andrean. 2022. Jelang Pembayaran Dividen, Saham HMSP Menguat 2%.
Diakses di website : https://www.cnbcindonesia.com/market/20220621123127-17-
348896/jelang-pembayaran-dividen-saham-hmsp-menguat-2