Analysis of Effect of Capital Expense Efficiency, Operating Expense Efficiency and Exchange Rate Difference to Financial Performance in PT.Telkomsel

Abstract

PT.Telekomunikasi Seluler (PT. Telkomsel) is one of the largest mobile telecommunications service providers and market leader in Indonesia. Competition in the cellular business is increasingly competitive, so companies must implement a variety of strategies and policies that are appropriate to keep the company growing and profitable. One of these things can be done by continuing to invest in developing networks and managing operational costs efficiently as well as carrying out appropriate policies in the purchase of equipment from overseas partners so that the effects of fluctuations in the exchange rate of the Rupiah against the Dollar can be minimized. The purpose of this study was to determine and analyze the effect of capital expenditure efficiency, operational cost efficiency and exchange rate differences to the financial performance of PT. Telkomsel. Financial performance is measured by profitability ratios such as net profit margin (NPM). There are three independent variables are capital expenditur efficiency (X1), operating expense efficiency (X2) and foreign exchange rate difference (X3). While the independent variable(Y) is net profit margin. Data collection in this study using the time series method by analyzing the quarterly financial statement data of PT. Telkomsel from 2012-2018. The results showed that 1) The efficiency of capital expenditure had a positive and significant effect to the financial performance of PT. Telkomsel. 2) The efficiency of operating expense has a positive and insignificant effect to the financial performance of PT. Telkomsel. 3) The exchange rate difference has a negative and significant effect to the financial performance of PT. Telkomsel.