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Journal : Journal of International Conference Proceedings

Financial Health of Leading SOEs: Altman Z-Score Analysis on LQ45 Issuers Rasid, Ayub Usman; Olilingo, Fahrudin Zain; Hasanuddin, Hasanuddin; Gani, Roydah
Journal of International Conference Proceedings Vol 8, No 1 (2025): 2025 ICPM Malaysia Proceeding
Publisher : AIBPM Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32535/jicp.v8i1.3912

Abstract

This study aims to evaluate the financial health of selected state-owned enterprises (SOEs) listed in the LQ45 index during the 2019–2023 period using the Altman Z-Score method. This approach combines five key financial ratios to assess the bankruptcy potential of firms. Secondary data were collected from annual financial reports and analyzed longitudinally and cross-sectorally. The results reveal that only PT Bukit Asam (PTBA) and PT Telkom Indonesia (TLKM) consistently remained in the safe zone (Z 2.99), while most other companies, particularly in the banking and infrastructure sectors, were classified in the grey or distress zones, indicating a significant bankruptcy risk. These findings highlight the financial resilience disparities across sectors within SOEs, despite structural support from the government. The study concludes that the Altman Z-Score model serves as an effective early warning tool for assessing financial risk, although sector-specific interpretation, especially for the financial services industry, is necessary. The implications suggest that corporate management should enhance operational efficiency, strengthen capital structure, and establish early warning systems based on financial ratios to improve long-term financial resilience.
Sustainable Coffee Production through FMEA-FMECA and DMAIC Integration: A Case Study of Pinogu Coffee Producer Lahay, Idham Halid; Olilingo, Fahrudin Zain
Journal of International Conference Proceedings Vol 8, No 1 (2025): 2025 ICPM Malaysia Proceeding
Publisher : AIBPM Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32535/jicp.v8i1.3948

Abstract

Sustainable coffee production has become increasingly crucial amid the challenges of climate change and growing consumer demand for eco-friendly products. This study explores the integration of Failure Modes and Effects Analysis (FMEA), Failure Modes, Effects, and Criticality Analysis (FMECA), and the Define, Measure, Analyze, Improve, Control (DMAIC) methodology to enhance sustainability practices at a Pinogu coffee producer. By combining risk identification with data-driven quality improvement, the research provides a comprehensive framework for addressing production inefficiencies and quality issues. The implementation of FMEA-FMECA effectively identified critical failure modes impacting product quality and operational performance, while DMAIC supported continuous improvement through waste reduction and process optimization. The findings demonstrate that aligning risk management tools with quality enhancement strategies offers a viable model for sustainable agricultural practices. This study not only delivers practical guidance for the coffee industry but also contributes valuable insights to the broader discourse on sustainable supply chain management in agribusiness.