Manufacturing Companies In Indonesia Research Articles

Implementation of Operational Management at the Manufacturing Company (Pt Nippon Indosari Corpindo, Tbk) Sari Roti

Operational management is very important for all types of industries, one of which is manufacturing. Manufacturing companies are concerned with production processes on a large scale that use equipment and machinery to manage raw materials into finished goods. PT Nippon Indosari Corpindo Tbk “SARI ROTI "is one of the leading bread manufacturing companies in Indonesia. This Journal discusses how SARI ROTI applies operations management concepts to achieve competitive advantage and meet growing market demand. Based on these objectives, researchers use qualitative research with qualitative analysis methods in which research is conducted by analyzing data using theoretical foundations as the basis of analysis. The data analyzed is secondary data, which is data that comes from existing sources and is not self-processed data The results showed that this company is a company that successfully runs the overall operations management concept, so that the company is able to produce quality products and ensure the cleanliness of all its products, as well as efficient in terms of the production process and distribution of products produced with a wide marketing area coverage.

Good Corporate Governance and Firm Value before and after covid-19 Case Study of Manufacturing Companies in Indonesia

This study investigates the impact of independent commissioners, audit committees, institutional ownership, and managerial ownership on the firm value of Indonesian manufacturing companies, both before and during the COVID-19 pandemic. Employing a quantitative research design and associative research approach, our findings reveal a positive relationship between independent commissioners and firm value, supporting existing literature on the role of independent commissioners in enhancing corporate governance. Conversely, the analysis indicates a negative influence of audit committees on firm value, emphasizing the need for a balanced approach to their formation to avoid undue restrictions on managerial autonomy. The examination of institutional and managerial ownership’s effects on firm value yields inconclusive results, suggesting the need for further exploration. Additionally, our study evaluates the impact of the COVID-19 pandemic on firm value using a dummy variable and a t-test, revealing no significant change in values during the pandemic. The focus on the Indonesian manufacturing sector provides valuable context, suggesting potential sector-specific resilience to pandemic challenges. Overall, this research contributes nuanced insights into corporate governance dynamics and their resilience in the face of unprecedented global events.

The Influence of the Rupiah Exchange Rate, Interest Rates and Inflation on Stock Prices (Case Study of the Indonesian Manufacturing Company Listed on the IDX)

This research aims to find out whether the Rupiah Exchange Rate, Interest Rates and Inflation have an influence on stock prices using a case study of a manufacturing company listed on the IDX. In this research, the method used is a quantitative method and the analysis in this research is Multiple Linear Regression using the selected model, namely the Random Effect Model. Data collection in the research used documentation studies using secondary data obtained from company annual reports on the IDX. The sample in this research was 20 samples taken using purposive sampling technique. then analyzed using Eviews 12 software. This research uses independent variables, namely the Rupiah Exchange Rate, Interest Rates and Inflation, then the dependent variable is Stock Prices. The results of this research show that share prices are significantly influenced by interest rates. While the Rupiah exchange rate and inflation do not affect stock prices, the aim of this research is to find out how far the rupiah exchange rate, interest rates and inflation affect stock prices. The results of this research show that the interest rate variable shows a positive and significant relationship to stock prices.

Examining the bonus mechanisms’ role in real earnings management dynamics in an Indonesian manufacturing company

Real Earnings Management (REM) and financial success may have different relationships depending on how managers act. Bonus mechanisms are a significant factor that influences management behavior. The study seeks to examine the impact of bonus systems on the correlation between financial performance and REM practices in manufacturing companies in Indonesia. Moderated Regression Analysis (MRA) is employed to evaluate the influence of bonus mechanisms in moderating the association of financial performance on REM. The technique of purposive sampling was used to pick the sample. The study utilized data from manufacturing firms listed on the Indonesian Stock Exchange from 2017 to 2021, including a total of 400 observed data points. The research findings demonstrate that sales growth is the sole factor that significantly influences REM in manufacturing organizations, as indicated by a p-value below 10%. Other financial performance factors, on the other hand, with p-values for each variable above 10%, have not been shown to have a significant impact on REM. These factors include ROA, leverage, operating cash flow, and cash. The findings also demonstrate that, with a p-value for each variable above 10%, the bonus mechanism is a variable that modifies the effect of all financial performance variables on REM.

Voluntary disclosure with the International Integrated Reporting Council (IIRC) framework and value relevance

Research aims: This paper aims to investigate whether voluntary disclosure of integrated reports (IR) with the International Integrated Reporting Council (IIRC) framework influences value relevance in Indonesia.Design/Methodology/Approach: The data covered the period 2017-2022 of all manufacturing companies in Indonesia listed on the Indonesia Stock Exchange (IDX). The total sample of this study was 606 firm-year observations. An IR Score was developed using the International IR Framework 2013, and content analysis was performed to measure IR adoption and practice. This study employed multiple linear regression to test the hypothesis. The authors also used two models: the Pricing Model for testing the main result and the Ohlson Model for testing robustness. Research findings: The result claims that the IR score yielded a positive and statistically significant effect on the value relevance of the company. In other words, companies with higher IR scores will also have a higher value relevance.Theoretical contribution/ Originality: First, this study contributes to the literature in accounting, stating that companies that adopt the IR framework can increase the value relevance. Second, by using different models to test the hypothesis, the results of this paper exhibit a consistent relationship.Practitioner/Policy implication: The study's findings help regulators develop new regulations.Research limitation/Implication: This research could only be generalized to Indonesian manufacturing companies. In addition, a significant number of Indonesian manufacturing companies continue to fail to submit integrated reports.

The Role of Trust and Engagement in Organizational Citizenship Behavior of Chemical Manufacturing Industry in Indonesia

Although research on the relationship between trust and engagement with organizational citizenship behavior (OCB) has been extensively explored, the connection between these variables in the context of the chemical industry remains underexplored. The aim of this study is to examine the influence of trust on OCB, the impact of engagement on OCB, and the combined effects of trust and engagement on OCB in the Chemical Manufacturing Sector in Indonesia. This research employs a quantitative associative approach. The sample comprises 249 employees from manufacturing companies in the city of Cilegon, Indonesia, selected through proportional stratified random sampling techniques. The data analysis technique employed is multiple linear regression analysis using SPSS version 26. The findings of this study reveal that trust has a significant positive influence on OCB, engagement has a significant positive impact on OCB, and both trust and engagement collectively exert a significant positive influence on OCB in the Chemical Manufacturing Sector in Indonesia. The results of this research contribute to providing insights for chemical manufacturing companies in Indonesia to enhance the quality of their employees in achieving OCB principles.

The Influence ROA, ROE, NPM, EPS and PER to Market Price on Public Listed Manufacture of Food Products 2018-2022

This study aims to provide empirical evidence in financial ratios which include ROA, ROE, NPM, EPS and PER for significance in predicting market prices on public listed food manufacture of food products in the 2018-2022 to minimize information asymmetry, increase transparency and accuracy between management and stakeholders that occur in a stock market. The research samples in this study are public food manufacturing companies in Indonesia in 2018-2022. This study uses panel data with cross-sectional data for 45 companies and time series data from 2018-2022. The total sample in this study is 201 samples. The results of this study indicate that H1 ROA has no significant effect on market price. Meanwhile, H2 ROE, H3 NPM, H4 EPS and H5 PER have a significant effect on market price

How Companies Create Value Through Management Accounting Practices in the Era of the Covid Pandemic

Purpose: This study aims to explore Management Accounting Practices (MAPs) in Indonesia and the impact that Covid-19 had on them. It also aims to establish the factors that affected MPAs during the pandemic, and the effect that these practices had on business performance. Design/methodology: Descriptive and verification methods were used. The former was employed to detail MAPs in manufacturing companies in Indonesia and the impact that the Covid-19 pandemic had on these practices. The verification method (using multiple linear regression) was employed to examine the factors that influence their MAPs and the effect of these practices on business performance. This study used primary data obtained from controllers who work for different Indonesian manufacturing companies. The total sample was composed of 41 questionnaire responses. Findings: This paper shows that most manufacturing companies in Indonesia have adopted MAPs for cost systems, decision-making, business strategies, and advanced manufacturing technology. In general, these MAPs are at Stage 4 as defined by the IFAC. This means that, in Indonesia, MAPs are implemented to create value and maintain companies’ sustainability in the era of Industry 4.0. Conclusions: The pandemic increased the implementation of MAPs, which had a significant effect on the intensity of market competition and firm performance. The results of this study support Statement 1 on Management Accounting by the IFAC, according to which accounting practices in Stage 4 are focused on the effective use of organizational resources to create value. Originality: This study focuses on manufacturing companies in Indonesia and the period of the Covid-19 pandemic, which brought about special conditions that impacted business operations. These results are in line with changes in the current business environment, and companies can consider them to create value and continuously improve their performance.

The Influence of Eco-efficiency on Financial Performance: Evidence From Indonesian Manufacturing Companies

The Influence of Eco-efficiency on Financial Performance: Evidence From Indonesian Manufacturing Companies

Analisis Penerapan Prinsip Good Corporate Governance dalam Meningkatkan Kinerja Perusahaan pada Perusahaan Manufaktur Kayu PT DLI

This research aims to analyze the implementation of Good Corporate Governance (GCG) principles in enhancing the performance of PT DLI, a wooden manufacturing company in Indonesia. Using a qualitative approach, the study involved interviews with three key informants from various departments within the company. The research findings indicate that the application of GCG principles, particularly transparency, accountability, responsibility, independence, and fairness, has been carried out with some challenges. Despite these principles having a positive impact on the company's performance, there is still external intervention in decision-making that may hinder the company's independence. Therefore, this study provides an in-depth understanding of how the implementation of GCG can influence company performance and highlights the need for further steps to enhance the company's independence in decision-making.

Corporate Governance and Financial Distress: A Comprehensive Analysis of Indonesian Manufacturing Companies

Aims: This study aims to find empirical evidence and analyze the effect of institutional ownership, managerial ownership, independent commissioner, board of directors, audit committe on financial distress. In addition, this research can also be used as a reference for further researchers as well as a reference for stakeholders (investors, creditors, and the government) in making relevant and reliable decisions.
 Study Design: The method used is quantitative research with secondary data taken from the company's financial statements with data collection techniques using purposive sampling.
 Place and Duration of Study: The study was conducted on 19 manufacturing companies listed on the Indonesia Stock Exchange for the period 2010 – 2021.
 Methodology: The method used in this research is explanatory with a quantitative approach and the sampling used is purposive sampling. Explanatory analysis is used to explain the relationship between variables Institutional ownership, Managerial Ownership, Independent Commissioners, Board of Directors, Audit Committee.
 Results: The results of this study indicate that: (1) Institutional Ownership have a negative effect on Financial Distress. (2) Managerial Ownership have a negative effect on effect on Financial Distress. (3) Independent Commissioners have a negative effect on effect on Financial Distress. (4) Board of Directors has a negative and significant effect on Financial Distress. (5) Audit Committee have no effect on Financial Distress.
 Conclusion: Based on the conclusion of the effect of good corporate governance on financial distress, it can be seen that GCG implementation can improve company performance, especially financial performance and reduce the risk of financial distress and in general GCG implementation can increase investor confidence. Conversely, the implementation of low Corporate Governance will reduce investor confidence and can be a factor that prolongs the economic crisis.

Quality Of the Work Environment Through the Approach of Employee Perceptions in Indonesian Manufacturing Companies

The purpose of this study is to investigate the relationship between perceptions of quality of work environment, behaviour and organization in PT manufacturing. The research method used was a questionnaire survey distributed to employees from different areas of the company. The variables studied include the perception of the quality of the work environment, the behaviour of the employees in performing their duties and the level of organization within the company. The results of the study show that there is a positive correlation between the perceived quality of the work environment and employee behaviour. The more positive the perception of the quality of the work environment, the better the relationship between the perceived quality of the work environment and employee behaviour. This study adds to our knowledge of how workplace quality influences employee behaviour and effective organizational performance. The results of this study suggest that organizations need to continue to improve the workplace. To create a successful and happy work environment, perception, environmental quality, behaviour and organization are critical factors that are interrelated. The secret to achieving organizational goals is a thorough understanding of how individuals' perceptions influence their behaviour and how that behaviour contributes to the organization. Organizations can improve employee performance, increase satisfaction, and gain a competitive edge in an increasingly globalised market by providing a happy, encouraging and high-quality working environment.

Business sustainability during crisis time in the emerging market: the case of Gunung Raja Paksi, Indonesia

Learning outcomes Upon completion of this study, students will be able to define, explain and describe sustainability and its application in the business context; learn and demonstrate their understanding of current practices, processes and operations in companies that are aligned to business sustainability by identifying such in the case study to enable them to provide relevant examples; discuss and describe sustainable operations and practices across different industries; identify sustainable themes in manufacturing sectors and other related industries; and identify sustainable strategies for production and manufacturing processes. Case overview/synopsis This case study focused on Gunung Raja Paksi (GRP), a steel manufacturing company in Indonesia, with a portfolio in steel trading, cement plants and carbon markets. The case study covered the COVID-19 crisis period, especially the year 2020, which disrupted the normal operations of businesses and subjected the community to economic challenges. The emergence of GRP’s prominence in sustainable business attributed to the initiatives advanced by Kimin Tanoto, the chief executive officer (CEO) and chairperson of the Indonesia Iron and Steel Association (IISIA). Kimin Tanoto assumed leadership of GRP, a family-owned business, in 2018, despite being the second son. At the time of Kimin’s induction into the board of commissioners, two main challenges – the impacts of the COVID-19 pandemic, which disrupted the supply chains, and the company culture that resisted sustainable business approaches – acted as detriments to profit-making. Sustainable efforts, however, contributed to noticeable success during and after the COVID-19 crisis. Complexity academic level The case is suitable for instructions in undergraduate courses in Bachelor of Engineering (BEng) in Sustainable Resources, Engineering and Management, Bachelor in Sustainable Environmental Management, Bachelor of Culture and Arts in Smart and Sustainable Design, Bachelor in Sustainable Solutions and Bachelor of Science (BSc) in Sustainable Use of Natural Resources, and other instructions on sustainable practices. Supplementary materials Teaching notes are available for educators only. Subject code CSS 3: Entrepreneurship.

Analysis Of The Influence Of Growth Opportunities, Company Size And Financial Difficulties Risk On Accounting Conservatism Of Potentially Bankrupt Manufacturing Companies In Indonesia

The purpose of this study is to ascertain whether accounting conservatism is influenced by firm size, prospective financial issues, and corporate growth opportunities, and whether this influence is mitigated by leverage. The author of this study employed the quantitative causal method. Purposive sampling is the procedure used in the sampling approach. The author used secondary data for this study. The yearly financial reports of manufacturing companies registered on the Indonesian Stock Exchange (BEI) provided the author with the secondary data used in this study. The author accessed the websites of each organization that satisfied the sample requirements in addition to the IDX website, which can be found at www.idx.co.id, to gather the necessary data. Using moderate regression analysis, the hypothesis test in this study examines the impact of the independent variable on the dependent variable and its moderating variable. The following conclusions can be made from this research based on the experiments that were conducted: Accounting conservatism is unaffected by a company's size. Accounting conservatism remains unaffected by potential financial difficulties. Accounting conservatism is influenced by growth potential. The relationship between accounting conservatism and corporate scale cannot be mediated by leverage. The association between the possibility of financial issues and accounting conservatism cannot be mitigated by leverage. The link between development prospects and accounting conservatism can be tempered by leverage.

The Effect of Tunneling Incentives, Thin Capitalization, Financial Distress, and Earnings Management on Tax Aggressiveness

This research examines the simultaneous and partial effects of tunneling incentives, thin capitalization, financial distress, and earnings management on tax aggressiveness in Indonesian manufacturing companies listed on the Indonesia Stock Exchange from 2017 to 2021. Purposive sampling was conducted on a sample population of 213 manufacturing companies to obtain 420 observations. Eviews 12 software was utilized for the panel data regression analysis. The analysis of this research reveals that tax aggressiveness is simultaneously influenced by tunneling incentives, thin capitalization, financial distress, and earnings management. Partially, thin capitalization, financial distress, and earnings management have a positive effect on tax aggressiveness, but tunneling incentives have no effect.

Relationship between Working Capital Management, Corporate Social Responsibility, Liquidity Risk, and Profitability on the Performance and Sustainability

The objective of this study is to investigate the correlation among working capital management, corporate social responsibility, liquidity risk, profitability, performance, and sustainability in Indonesian manufacturing companies. Data were collected from 150 companies in West Java, Indonesia, and analyzed using the PLS-SEM approach. The analysis results show working capital management, corporate social responsibility, and liquidity risk have a significant positive effect on profitability, which in turn has a positive impact on performance and sustainability. These results support the research and provide insights into the importance of managing working capital, adopting corporate social responsibility practices, and reducing liquidity risk to improve profitability, performance, and sustainability in Indonesian manufacturing companies.

Analysis of the Effect of Tax Compliance, Tax Avoidance, and Financial Reporting Quality on Company Financial Performance: A Case Study on a Manufacturing Company in Indonesia

This research investigates the intricate relationships among tax compliance, tax avoidance, financial reporting quality, and corporate financial performance in Indonesian manufacturing companies. Employing a quantitative approach, data were collected from 150 companies and analyzed using Structural Equation Modeling with Partial Least Squares (SEM-PLS). The study found robust positive associations between tax compliance and financial reporting quality with corporate financial performance. Furthermore, a nuanced relationship emerged between tax avoidance and financial performance, highlighting the importance of moderation. The empirical findings offer valuable insights for practitioners, policymakers, and academics seeking to understand the dynamics of tax-related activities and financial outcomes in the Indonesian manufacturing sector.

The Effect of Investment in Green Technology and Renewable Technology Adoption on Energy Efficiency and Carbon Emissions Reduction in Indonesian Manufacturing Companies

This research explores the interactions between green technology investment, renewable technology adoption, and their effects on carbon emission reduction, energy efficiency, and job satisfaction in manufacturing firms. Using a diverse sample of manufacturing firms, this study employs Structural Equation Modeling - Partial Least Squares (SEM-PLS) to analyze the relationships among these key variables. The findings suggest a strong positive impact of green technology investment and renewable technology adoption on carbon emission reduction. In addition, green technology investment emerged as a significant driver of energy efficiency. The study also highlights the challenges in fully optimizing energy efficiency and reveals the positive impact of renewable technology adoption on job satisfaction. These insights have far-reaching implications for policymakers and industry leaders looking to drive sustainable practices in the manufacturing sector.

Improving Trust and Accountability in AI Systems through Technological Era Advancement for Decision Support in Indonesian Manufacturing Companies

This study explores how technological developments in Artificial Intelligence (AI) decision support systems within Indonesian manufacturing organizations interact with the intricate dynamics of trust, accountability, and technology. The study employed a cross-sectional quantitative research approach to gather responses from a representative sample of professionals spanning different organizational levels, age groups, and functions. The results show that there is a high degree of trust in AI systems, which is largely impacted by dependability and transparency. Strong perceived accountability frameworks encourage prudent decision-making. Technological developments have a big impact on trust and responsibility, especially in Explainable AI and bias prevention. A nuanced interpretation is ensured by the study's demographic analysis, which provides practitioners and policymakers with practical insights to support ethical AI integration in Indonesia's industrial sector.

CRITICAL SUCCESS FACTORS FOR ACCOUNTING INFORMATION SYSTEM IMPLEMENTATION: EVIDENCE FROM MANUFACTURING COMPANIES

Not all manufacturing companies are successful in implementing an integrated Accounting Information System (AIS), it requires the right combination of technology and humans as the main drivers. This research explored the relationship between organizational commitment from AIS users, knowledge of accounting managers, and data quality on the success of AIS implementation in manufacturing companies. A quantitative approach used the SEM-PLS method on 50 manufacturing companies in Indonesia. Meanwhile, the research results stated that data quality and knowledge of accounting managers had a positive and significant effect on the success of AIS implementation, while organizational commitment did not have a significant effect. This research implied that manufacturing companies could emphasize quality data and increase the knowledge of their managers to provide value to the organization through AIS.