DIGITAL BUSINESS TRANFORMATION: THE ULTIMATE STRATEGY OF PT. PLN (PERSERO) IN BOOSTING BUSINESS PERFORMANCE AND AVOIDING FINANCIAL DISTRESS

Syukron Sazly, Harun Al Rasyid, Agus Tri Indah K

Abstract


This study investigates the financial distress of PT PLN (Persero), Indonesia's state-owned electricity provider, from 2019 to 2023 using the Springate S-Score method. Despite implementing digital business transformation and human resource development initiatives to enhance operational efficiency and service quality, PLN faces ongoing financial challenges. These challenges stem from high debt levels incurred due to the company's ambitious 35,000 MW power expansion project, as well as persistent cash flow difficulties. The study analyzes key financial indicators such as the debt-to-equity ratio, cash flow issues, and operational inefficiencies, tracking the company's fluctuating financial health. The Springate S-Score results indicate significant financial distress in 2021, reflecting the peak of PLN's financial pressures. However, improvements are observed in 2022 and 2023, signaling a gradual recovery as a result of cost-cutting measures and strategic adjustments. Based on the findings, the study recommends that PLN focus on reducing capital expenditures, renegotiating debt terms, and enhancing financial management practices. These measures are designed to stabilize the company’s financial position and improve its long-term sustainability, particularly as the energy sector continues to evolve with increasing demands for efficiency and renewable energy solutions. This study further emphasizes the impact of PLN’s operational inefficiencies, which have compounded its financial difficulties. The company's reliance on external financing has increased its vulnerability to debt servicing pressures. Additionally, the fluctuating energy prices and challenges in maintaining consistent revenue streams have added to its financial strain. By addressing these core issues, PLN can improve its resilience and adapt to the evolving energy landscape, ensuring both financial stability and operational sustainability in the long term. The recommendations provided aim to balance the need for infrastructure development with financial prudence, positioning PLN for a more secure future.

Keywords:

Business Transformation ,Financial Distress, Bankruptcy


Full Text:

PDF

References


REFFERENCE

Adolph, R. (2016). 済無No Title No Title No Title. 1–23. https://kumparan.com/kumparanbisnis/daftar-7-bumn-yang-terlilit-utang-jumbo-di-2021-ada-yang-terancam-bangkrut-1xD5rZU8QEf

Azwar, K. (2022). Implementation of Springate , Altman , Grover and Zmijewski Models in Measuring Financial Distress. 3(1), 1–8.

Dharma Swara, R. A. (2021). Pengaruh Rasio Keuangan Terhadap Financial Distress pada Perusahaan Sub Sektor Bangunan Konstruksi yang Terdaftar di Bursa Efek Indonesia Tahun 2017 – 2019. Jurnal Syntax Admiration, 2(10), 1960–1068. https://doi.org/10.46799/jsa.v2i10.328

Gracia, A., Hungan, D., & Sawitri, N. N. (2018). Analysis of Financial Distress with Springate and Method of Grover in Coal In BEI 2012 - 2016. 2(2), 52–60.

Gunawan, E., & Debbianita, D. (2022). Analisis Financial Distress pada Perusahaan Sub Industri Penerbangan dan Kereta Api yang Terdaftar di Bursa Efek Indonesia Sebelum dan Sesudah Pandemi Covid-19. Jurnal Akuntansi, 14(1), 112–126. https://doi.org/10.28932/jam.v14i1.4426

Hidayat, T., Permatasari, M., & Suhamdeni, T. (2021). Analisis Pengaruh Rasio Keuangan Terhadap Kondisi Financial Distress Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia. Jurnal Akuntansi Bisnis Pelita Bangsa, 5(02), 93–108. https://doi.org/10.37366/akubis.v5i02.156

Kraus, S., Durst, S., Ferreira, J. J., Veiga, P., Kailer, N., & Weinmann, A. (2022). Digital transformation in business and management research: An overview of the current status quo. International Journal of Information Management, 63(August 2020). https://doi.org/10.1016/j.ijinfomgt.2021.102466

Kraus, S., Jones, P., Kailer, N., Weinmann, A., Chaparro-Banegas, N., & Roig-Tierno, N. (2021). Digital Transformation: An Overview of the Current State of the Art of Research. SAGE Open, 11(3). https://doi.org/10.1177/21582440211047576

Krymska, A., Chalii, A., Petruk, V., Kobzieva, O., & Tytar, O. (2024). Challenges and opportunities of digital transformation in Ukrainian education. Futurity Education, 4(3), 182–199. https://doi.org/10.57125/fed.2024.09.25.11

Manajemen, P. S., Ekonomi, F., Bisnis, D. A. N., & Indonesia, U. K. (2021). IMPACT OF ADOPTION OF FINANCIAL STANDARDS AND INNOVATIONS ON SME BUSINESS PERFORMANCE : THE ROLE OF COMPETITIVE ADVANTAGE AS A. 11(1).

Rivandi, M., & Ariska, S. (2019). Pengaruh Intensitas Modal, Dividend Payout Ratio Dan Financial Distress Terhadap Konservatisme Akuntansi. Jurnal Benefita, 1(1), 104. https://doi.org/10.22216/jbe.v1i1.3850

Sari, M., & Diana, H. (2020). Analisis Rasio Keuangan Untuk Memprediksi Kondisi Financial Distress Perusahaan Pulp Dan Kertas Yang Terdaftar Di Bursa Efek Indonesia Tahun 2012-2017 Dengan Model Altman Z-Score. Research in Accounting Journal (RAJ), 1(1), 32–48. https://doi.org/10.37385/raj.v1i1.32

Silanno, Glousa Lera & Loupatty, L. G. (2021). Pengaruh Current Ratio, Debt To Equity Ratio dan Return On Asset terhadap Financial Distress Pada Perusahaan-Perusahaan Di Sektor Industri Barang Konsumsi. Jurnal Ekonomi, Sosial & Humaniora, 2(07), 85–109. https://www.jurnalintelektiva.com/index.php/jurnal/article/view/482

Suwandani, V., & Nuzula, N. (2017). SPRINGATE S-SCORE MODEL UNTUK MEMPREDIKSI FINANCIAL DISTRESS PERUSAHAAN (Studi pada Perusahaan Tekstil dan Garmen yang Terdaftar di Bursa Efek Indonesia Periode 2006-2015). Jurnal Administrasi Bisnis S1 Universitas Brawijaya, 47(1), 140–146.

Tahu, G. P. (2019). PREDICTING FINANCIAL DISTRESS OF CONSTRUCTION COMPANIES IN INDONESIA : A COMPARISON OF ALTMAN Z-SCORE AND SPRINGATE METHODS Author. 2(2), 7–12.




DOI: http://dx.doi.org/10.31000/dmj.v8i4.12584

Article Metrics

Abstract - 316 PDF - 101

Refbacks

  • There are currently no refbacks.


Jurnal ini telah terindeks dalam:


googleGaruda crossref dimention


Office:
Editor of Dynamic Management Journal (DMJ) UMT, Building F, 3rd Floor, Department Management Faculty of Economics and Business, Universitiy Of Muhammadiyah Tangerang
Jl. Perintis Kemerdekaan I No.33, RT.007/RW.003, Babakan, Cikokol, Kec. Tangerang, Kota Tangerang, Banten 15118

Wa: 08567312111 (Galuh), 085716034977 (Eky)
Email: dynamic@gmail.com 

Dynamic management journal is licensed under Attribution-ShareAlike 4.0 International