Analysis of PDAM Performance in East Java Before and After Debt Restructuring

Abstract

This study aims to analyze the process of restructuring in PDAM. This research was conducted at PDAM in East Java. The population and samples used in this study amount to 38 PDAM in East Java.Data collection techniques using secondary data in the form of financial performance reports. The analytical method used is the analysis of financial statements and discriminant analysis. The results show that the variables of each group have a significant difference. The o ne of the real impacts of the size of the debt rate is the magnitude of the interest rate that burdens the operational of the PDAM. The greater the debt, the greater the interest rate (including the principal of the debt) to be paid. Interest expense will be a problem and hamper the performance of PDAM, both financial and operational performance, if the proportion to total operational cost is quite large compared to the proportion of other operational costs. Conditions on PDAMs in East Java. The direct cost of PDAM business is also a burden because the numbers are very large. Together with the high interest expense, this condition further exacerbates the financial performance of PDAM in East Java Province prior to debt restructuring, especially on the aspect of profitability. The low efficiency of production where the average production efficiency is 64.47% and even decreased to 62.70% after the restructuring. Debt and interest expense for each cubic meter of clean water produced also shows that PDAMs in East Java Province have to bear the burden of debt and interest costs per cubic meter are much higher. All operational costs must ultimately be charged to the consumer, then the debt and interest expense per cubic meter also automatically becomes the burden of the consumer.