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 to
nancing activities and
daily o p e r a t i o n s . T h e
C o m p a n y 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 W.1 The nancial
production results condition of the company
S.2 Wide distribution is less stable
S.3 Company W.2 The condition of
liquidity S.4 facilities and infrastructure
Employees quality renderer limited
S.5 Concerned about information for the public
the environmental W.3 Decomposition
impact method existing wood
S.6 The efciency of components are less
cost advertising effective

O.1 Market demand for

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

T.1 Lack of trust from

organizations concerned 1. Information Access
about the environment 1. Environment Improvement (W2,T2)
against industrial raw Awareness
materials Tjiwi Kimia (S5,T1,T3,T4)
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 201 Change % PT Fajar PT
4 Indah
PT Tjiwi Kimia Tbk
Items (x USD 1 Million)

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

Cost of good sold (17) % 0.64%
1,073 1,056 -1.58% 15.01 -
Gross Pro t 149 139 (10) -6.71% -% 0.91%
0.67
Selling 19.64% %
69 76 7 9.65% 14.69 -
General and administrative 49 41 (8) - %
- 0.62%
-
Operating income 16.33% 1.96% 3.45%
31 22 (9) - - 4.60
Other expense-net 16 11 (5) 28.32%
- 33.88%
- %
100.00
Income before income taxes 15 (4) 31.25%
- - 75.82% %19.81
11
Income tax benet (3) 25.12%
- 138.30%
- - %
12 9
25.00% 150.00% 1042.86
Net income 27 20 (1) -2.59% - -
134.54% 42.99%
Consolidate The consolidated net sales of the Company
decreased from USD 1,222 million in 2013 to USD 1,195
d million in 2014 or a decrease of 2,21%. The decrease was
mainly due to a decrease in selling price of Company's
Net Sales 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
Cost of costs mainly consist of packaging expenses, repairs and
maintenance expenses, depreciation of xed assets,
Goods Sold energy expenses, electricity expenses and water
expenses. Cost of goods sold in
2014 amounted to USD 1,056 million, or a decreased of
1.58%
Consolidate compared to 2013 amounted to USD 1,073 million.

d The consolidated gross prot of t

h e C o m p a n y decreased from USD 149 million in
Gross 2013 to USD 139 million in
Pro t 2014 or a decrease of 6.71%.

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
Operating expenses mainly consist of management and professional
Expenses fees, salaries and wages, insurance expenses, ofce
expenses and repairs 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.
Consolidate
The consolidated operating income of the Company
d decreased from USD 31 million in 2013 to USD 22 million
Operating in 2014, or a decrease of 28.32%. This was mainly due to a
decrease in gross prot margin of the Company in 2014.
Income

Other expenses decreased by 31.25% from USD

Other 16 million in 2013 to USD 11 million in 2014.
Expenses

Income Taxes
Before
Income
Income before income taxes decreasde by 25.12% from USD
15 million in 2013 to USD 11 million in 2014.

Income tax benet of the Company decreased from USD

Income 12 million in 2013 to USD 9 in 2014, or a decrease of 25%.
Tax
Bene t
 Income statement
2013 2014 Change %
PT Fajar Surya
(x Rp1
Items
billion)
Net sales 4.96 496 10.00%
Cost of good sold 1 5.457 637 15.01%
4.24 4.880
3
Gross Pro t 718 (141 -19.64%
577 )
Selling 177 203 26
14.69%
Consolidate General and administrative 51 50 (1)
-1.96%
d Operating pro t 490 324 (166)
Net Income -33.88%
Other expense-net 819 198 (621)
-75.82%
Income before income taxes (329) 126 455 -
Income tax benet 80 (40) (120) 138.30
-
Net income (249) 86 335 -150.00
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
Revenu 21% in raw materials costs to Rp3.717 billion attributable
to higher costs for domestic sources of raw materials. We
e 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 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
 i
n
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
Selling, costs while general and administrative expenses were
General and down by 3.5% to Rp50 billion.
Administrativ
e 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
Finance Rp83 billion in 2014. After the substantial re-rating in the
second half of 2013, which had a material impact on the
Charges and income statement in that year, the Rupiah strengthened
Translation during the rst half of 2014 and traded in a narrower
range against the US Dollar before a period of further
Costs 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 -
Cost of good sold 2,201 2,181 )
(20 0.64%
-
Gross Pro t 451 454 ) 3 0.91%
0.67
Selling 161 160 (1) -%
General and administrative 116 112 (4) -0.62%
Net Income Operating pro t 174 182 83.45%
Other expense-net
4.60% 33 66 33 100.00
Income before income taxes 207 248 41 %19.81
Income tax benet 14 (132) (146 - %
Net income 221 126 ) (95 1,042.86
-
) 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%
Consolidate compared to 2013 amounted to USD 2.652 million. This
was mainly caused by the decrease in selling price of the
d Company's products. Consolidated net sales per segment
Net Sales consist of paper and pulp 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,
Cost of transportation expenses, water and electricity expenses.
Good Sold The cost of good sold of the Company amounted to USD
2,181 million in2014, or a decrease of 0.9% compare with
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 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
Consolidate in 2014, or an increased of 0.7%. The consolidated gross
d prot increased from
17.0% in 2013 to 17.2% in 2014, this was mainly due to
Gross decrease in cost of good sold of the Company's products.
Pro t Gross prot of paper and pulp products per segment
amounted USD 369 million and packaging products and
others segment amounted to USD 85 million in 2014
(amounted to USD 344 million and USD 107 million in 2013
respectively).
Operating expenses consist of selling expense and
general and administrative expenses. Selling expenses
Operating mainly consist of freight expense, ofce expense,
commission and salaries. General and administrative
Expenses expenses mainly consist of salaries, professional fees,
ofce expenses and depreciation of
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.
 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
Consolidate the increase of gross prot and the decrease of operating
d expenses, the Company recorded on operating income of
paper and pulp segment amounted to USD 194 million and
Operating 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
Other income-net of USD 33 million. This was mainly due to the
decrease of gain on foreign exchange-net from USD 171
income million in 2013 to USD 28 million in 2014. The gain on
(expenses)- foreign exchange was due to US Dollar value
strengthened against Indonesian Rupiah and Japanese
net 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
Consolidated 2014.

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 2009 2010 2011 2012 2013
2014 2014

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

PT Tjiwi Kimia Tbk (x USD 1

Items Million)
Net Sales 855 1,339 1,379 1,322 1,222 1,19
Period Cost 79 143 128 130 118 5 117

Cost of Sales 700 1,117 1,146 1,105 1,073 1,05

Operating Expense 779 1,260 1,274 1,235 1,191 6
1,17
Non-operating Expense 25,293 16,965 14,906 44,2833 16,374 3
10,84
0
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: Base year x 100
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 Billion)

Items Rp1
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 USD1 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 1,339 1,379 1,322 1,222 1,19
855
Cost of good sold 1,117 1,146 5
700 1,106 1,073 1,05
6
Gross Pro t 222 233 216 149 139
155
Selling 64 70 78 69 76
38
General and administrative 41 78 58 53 49 41
Operating income 80 105 85 31 22
76
Other expense-net 25 17 15 44 16 11
Income before income taxes 51 63 90 41 15 11
Income tax benet (16) 20 7 12 9
(12) income
Net 47 110 48 27 20
39
Common Sizes
Net Revenues 100.0 100.0 100.0 100.0 100.
100.0
Cost of good sold 81.9 83.4 83.1 83.7 87.8 0
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.
 Liquidi
ty
PT Tjiwi Kimia PT Fajar PT
Surya Indah
Kiat
2012 2013 2014
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 PT Indah
2012 Fajar
Sury Kiat
2013 2014
a
Cash Turnover 8.026 9.273 77.243 2,709.452
13.966
Account receivable turnover 3.787 2.166 2.517 5.83 19,664.455
1
Inventory turnover 2.969 0.765 6.600 2.454
6.344
Working capital turnover 1.750 2.052 21.542 5,166.739
2.048
PPE turnover 1.048 1.041 1.450 588.704
2.241
Total asset turnover 0.462 0.450 0.968 0.396
0.503

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.
 Marke Measure
t s PT PT Fajar PT Indah
Tjiwi Surya Kiat
Kimi
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

Rp3.00 PT Tjiwi Kimia Tbk

0

Rp2.50
0

Rp2.00
0

Rp1.50
0

Rp1.00
0
Q1 Q2 Q3 Q4
Rp500

Rp0

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 .

Rp3.00
PT Fajar Surya
0

Rp2.50
0

Rp2.00
0

Rp1.50
0

Rp1.00
0
Q1 Q2 Q3 Q4
Rp500

Rp0

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 .