<![CDATA[The government supports the manufacturing industry through the “Import Facility for Export Purpose” (KITE) stimulus, aiming to alleviate financial constraints on businesses. Despite this, data from Statistics Indonesia (BPS) indicates a continuous decline in the manufacturing sector’s contribution to total GDP since 2010. Furthermore, two KITE-recipient companies listed on the Indonesia Stock Exchange (IDX) consistently reported losses from 2019 to 2023. This study examines the direct and indirect effects of the KITE facility and cash holdings on financial performance, using export value as a mediating variable. The study employed panel data regression with the Feasible Generalized Least Squares (FGLS) model and path analysis. It utilized quarterly panel data from 2021 to 2024, involving 11 KITE companies listed on the IDX. The results show that, directly, cash holdings and export value have a proven positive effect on financial performance. However, the KITE facility does not demonstrate a positive direct effect. Path analysis confirms that both the KITE facility and cash holdings have a positive indirect effect on financial performance through export value. This research implies that the effectiveness of the KITE facility requires continuous evaluation, and special attention should be given to cash holdings to help improve industrial performance.]]>
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