A Financial Distress Prediciton on Property, Construction, and Real Estate Companies Listed in BEI

  • Alberto Orson Ongkowidjojo Petra Christian University
  • Anastasia Njo
  • Januar Budiman
Keywords: economic growth, financial distress, GDP, discriminant analysis, financial ratio


The slowing of economic growth in Indonesia could cause financial distress for companies in property, construction and real estate sectors as these companies has enormous amount of GDP contributions in Indonesia. These difficulties are related to companies being able to accomplish all its responsibilities in short nor long terms. In assessing financial status of a company, discriminant analysis could be of use to see financial ratio such as liquidity ratio, profitability, activity and solvability. This research consists of comparative and sample pulling technique towards 81 population in multiple sectors such as property, construction and real estate. Data collection method by documentation.  Discriminant analysis results depicts that liquidity ratio(CA/CL), profitability (EBIT/TA and NI/SALES), activity (SALES/TA), and solvability (BV/TL and TL/EQUITY) could be used to distinguish which company are experiencing financial distress and which are not.


Altman, E. I. (2000). Predicting Financial Distress of Companies: Revisiting the Z-score and Zeta Models. Journal of Finance.
Badan Pusat Statistik. (2019). Laporan Perekonomian Indonesia. Retrieved from Badan Pusat Statistik: https://www.bps.go.id/publication/2019/09/16/7cc68afc43aa0d8b9e8eaf47/laporan-perekonomian-indonesia-2019.html
Bank Indonesia. (2012). Survey Harga Properti Indonesia. Retrieved from Bank Indonesia: https://www.bi.go.id/id/publikasi/survei/harga-properti-primer/Pages/shpr_tw412-1.aspx
Chin, H., Hills, J., & Sim, D. (2018, March). Indonesia Viewpoint - Four Key Trends Shaping the Real Estate Market in 2018/2019. Retrieved from CBRE: https://indonesia.cbre.com/en/research-reports/Indonesia-ViewPoint---Four-Key-Trends-Shaping-the-Real-Estate-Market-in-20182019
CNBC Indonesia. (2018). Penjualan Membaik, Saham Properti Mulai Diincar. Retrieved from CNBC Indonesia: https://www.cnbcindonesia.com/market/20180209153522-17-3956/penjualan-membaik-saham-properti-mulai-diincar
Danilov, A. K. (2014). Corporate Bankruptcy: Assessment, Analysis and Prediction of Financial Distress, Insolvency, and Failure. SSRN Electronic Journal.
Databoks. (2018). Sektor Industri Berkontribusi 20% Terhadap Perekonomian Nasional. Retrieved from Databoks: https://databoks.katadata.co.id/datapublish/2019/02/08/sektor-industri-berkontribusi-20-terhadap-perekonomian-nasional
Kho, S. H., & Mariani, F. I. (2017). Financial Management Canvas. Jakarta: PT Elex Media Komputindo.
Otoritas Jasa Keuangan. (2019, Juli). Statistik Perbankan Indonesia. Retrieved from Otoritas Jasa Keuangan: https://www.ojk.go.id/id/kanal/perbankan/data-dan-statistik/statistik-perbankan-indonesia/Pages/Statistik-Perbankan-Indonesia---Juli-2019.aspx
Senbet, L. W., & Wang, T. Y. (2012). Corporate Financial Distress and Bankruptcy: A Survey. Now Publishers.
Stiglitz, J. E. (1972). Some Aspects of the Pure Theory of Corporate Finance: Bankruptcies and Take-overs. JSTOR.
Weston, J. F., & Copeland, T. E. (1992). Manajemen Keuangan. Jakarta: Erlangga.