Strategy of Djakarta Lloyd Ltd Post State Equity Participation for Performance Improvement

Abstract

Djakarta Lloyd Ltd is an Indonesian commercial shipping company that was established in 1950. As a State's Owned Enterprise that received State Equity Participation (PMN), Djakarta Lloyd Ltd is expected to improve its business scale, performance, and contribution. The objectives of this research are defined as follow 1) Analyze the financial performance of Djakarta Lloyd Ltd after State Equity Participation injection, 2) Analyze internal and external factors which affect Djakarta Lloyd Ltd performance after State Equity Participation injection, 3) Formulate alternative strategy towards performance in adherence to internal and external factors' impact on Djakarta Lloyd Ltd after State Equity Participation injection, and 4) Formulate strategy to be prioritized so as to achieve performance targets set by Djakarta Lloyd Ltd after State Equity Participation injection. This research uses primary and secondary data in qualitative as well quantitative. From 2017-2020, Djakarta Lloyd Ltd produces Z-Score of 1.2 or below cut-off point Z<1.81. According to cut-off criteria, Djakarta Lloyd Ltd can be categorized as an entity in a state of bankruptcy. In contrast, the result from DuPont analysis on financial performance based upon 5 assessment indicators generates a score of 3.02. The number is above average of 2.5 which indicates Djakarta Lloyd Ltd is currently deemed capable to respond to opportunities and threats. Furthermore, IFE matrix score of 3.04 implies that Djakarta Lloyd Ltd internal control management is above average exhibiting a strong fundamentals. Referring to AHP, there are 15 strategic priorities generated with the highest component of of 0.174 is to conduct periodical internal and external financial audit in intensive manner to understand whether State Equity Participation injection is in accordance with preliminary assessment, and contribute to the company. Keywords: AHP, Djakarta Lloyd Ltd, State Equity Participation, SWOT