financial performance analysis of pharmaceutical

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FINANCIAL PERFORMANCE ANALYSIS OF PHARMACEUTICAL COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE (IDX)

BEFORE AND AFTER THE NATIONAL HEALTHCARE INSURANCE COVERAGE (JKN – JAMINAN KESEHATAN NASIONAL) PROGRAM BY

BPJS KESEHATAN

By

Chantigy Jacinda 13112048

BACHELOR’S DEGREE in

BUSINESS ADMINISTRATION

FACULTY OF BUSINESS ADMINISTRATION AND HUMANITIES

SWISS GERMAN UNIVERSITY EduTown BSD City

Tangerang 15339 Indonesia

August 2016

Revision after the Thesis Defense on July 29^th 2016

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Chantigy Jacinda STATEMENT BY THE AUTHOR

I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.

Chantigy Jacinda

____________________________________________

Student

Date

Approved by:

Izhari Mawardi, B.Eng., S.A.P., MPP

____________________________________________

Thesis Advisor

Date

Eric Jos Nasution, MBA, MA, Ph.D

____________________________________________

Dean

Date

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STOCK EXCHANGE (IDX) BEFORE AND AFTER THE NATIONAL HEALTHCARE INSURANCE COVERAGE

(JKN – JAMINAN KESEHATAN NASIONAL) PROGRAM BY BPJS KESEHATAN Page 3 of 76

Chantigy Jacinda ABSTRACT

Financial Performance Analysis of Pharmaceutical Companies Listed on the Indonesia Stock Exchange (IDX) Before and After the National Healthcare Insurance

Coverage (JKN – Jaminan Kesehatan Nasional) Program by BPJS Kesehatan

By

Chantigy Jacinda

Izhari Mawardi, B.Eng., S.A.P., MPP, Advisor

SWISS GERMAN UNIVERISTY

The research analyses Pharmaceutical Company’s Financial Performance on the selected companies focusing on Sales Contribution Sales from the JKN Program and Return on Equity. The National Healthcare Insurance Coverage or JKN – Jaminan Kesehatan Nasional is an Indonesian healthcare reform program with aim to reach Universal Health Coverage launched on January 1^st 2014. Furthermore this research objectives is to reveal the significant changes of company’s Net Sales the year before and the year after application of the program with additional aim to find the correlation between selected Financial Performance Variables which gathered from Annual Report by using Paired Sample T-Test on SPSS Program.

The results are, there is no significant changes between Net Sales before and after the program applied, negative correlation between percentage sales contribution from companies and Net Sales growth rate, and positive correlation between Net Sales growth rate and Return on Equity growth rate.

Keywords: National Healthcare Insurance Coverage Program, JKN – Jaminan Kesehatan Nasional Program, Indonesia Healthcare Reform, BPJS Kesehatan, Pharmaceutical Company, Financial Performance, Net Sales, Sales Contribution, Return on Equity, IDX

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Chantigy Jacinda

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Chantigy Jacinda DEDICATION

I dedicate this research for my family, Swiss German University, friends, the Ministry of Health Republic of Indonesia, Pharmaceutical Industry, and future researcher who

will continue analyze this research.

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Chantigy Jacinda ACKNOWLEDGEMENTS

First and foremost, I would like to thank to Allah SWT because of Him, his blessings, I will not be able to finish this Thesis.

Huge thanks to my parents who always support me through this university life, in materials, prayers, morals, and advices. My big family who give me sermons to finish my bachelor on time.

Endless thanks to my advisor, Pak Izhari Mawardi, for his time, efforts, guidance, advices, and patience during the thesis process. With his big help and support, I can bring this thesis into perfection.

My very best friends, Niswah Qurrotul Aini who spared her precious time for me and taught me how to make the real thesis and how to test my hypothesis. Ema Liona Amalia, Dewi Aprianti Laraswati and Rahmadita Fillaili who really support me, gave me strengths to finish this quickly, and scolded me when I was lazy.

My lovely Uni, Thesis life and swimming partners: Angelia Ongko and Audrey Jeremialle thank you girls for always support each other through these last 4 years and working on our Thesis together. Also my other favorite girls: Finance Belle (Angie Alverina, Lucyana, Myra Beatrice, and Sefika Fildzabiani) thank you girls for everything. Bunch of hugs and kisses.

Last but not least, my Banking and Finance classmates batch 2012, for all helps, support and togetherness these last 2 years together and all my friends who helped me and cheered me up in good and bad times.

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Chantigy Jacinda TABLE OF CONTENTS

Page

STATEMENT BY THE AUTHOR ... 2

ABSTRACT ... 3

DEDICATION ... 5

ACKNOWLEDGEMENTS ... 6

TABLE OF CONTENTS ... 7

LIST OF FIGURES ... 11

LIST OF TABLES ... 12

CHAPTER 1 – INTRODUCTION ... 13

1.1 Background ... 13

1.2 Research Problems ... 16

1.3 Research Questions ... 16

1.4 Research Objectives ... 17

1.5 Scope and Limitation ... 17

1.6 Significance of Study ... 18

CHAPTER 2 - LITERATURE REVIEW ... 19

2.1 Framework of Thinking - Theoretical Perspectives ... 19

2.1.1 Universal Health Coverage ... 21

2.1.2 National Healthcare Insurance Coverage (JKN) Program by Ministry of Health, Republic of Indonesia ... 22

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Chantigy Jacinda

2.1.3 Generic Drugs ... 24

2.1.4 Financial Performance ... 24

2.1.4.1 Net Sales ... 25

2.1.5 Financial Ratio ... 25

2.1.5.1 Profitability Indicator Ratio ... 26

2.1.5.1.1 Return on Equity (ROE) ... 26

2.2 Study Differences ... 30

2.3 Research Model ... 30

CHAPTER 3 – RESEARCH METHODS ... 31

3.1 Research Process ... 31

3.2 Type of Study ... 32

3.3 Unit of Analysis ... 32

3.4 Population and Sampling ... 33

3.4.1 Population ... 33

3.4.2 Sampling ... 33

3.5 Type of Data and Collection Method ... 34

3.6 Variable Operationalization ... 35

3.7 Data Analysis Technique ... 36

3.7.1 Chart and Descriptive Analysis ... 37

3.7.2 Normality Test ... 37

3.7.3 Paired Simple T-Test ... 37

CHAPTER 4 – RESULTS AND DISCUSSIONS ... 40

4.1 Pharmaceutical Companies Overview ... 40

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Chantigy Jacinda

4.1.1 PT Kimia Farma Tbk (KLBF) ... 40

4.1.2 PT Indofarma (Persero) Tbk (INAF) ... 41

4.1.3 PT Kalbe Farma Tbk (KLBF) ... 42

4.1.4 PT Tempo Scan Pasific Tbk. (TSPC) ... 43

4.1.5 PT Darya Varia Laboratoria Tbk. (DVLA) ... 44

4.2 Results and Data Analysis ... 44

4.2.1 Chart and Descriptive Analysis ... 45

4.2.1.1 Net Sales Analysis ... 45

4.2.1.2 Company’s Net Sales Contribution from the JKN Program ... 47

4.2.1.3 Return on Equity (ROE) Chart Analysis ... 50

4.2.2 Normality Test ... 52

4.2.3 Hypothesis Testing ... 54

4.2.3.1 Hypothesis #1 ... 54

4.2.3.2 Hypothesis #2 ... 56

4.2.3.3 Hypothesis #3 ... 58

4.3 Pharmaceutical Companies – Big Contribution on the JKN Program... 59

CHAPTER 5 – CONCLUSIONS AND RECCOMENDATIONS ... 61

5.1 Conclusions ... 61

5.2 Recommendations ... 62

GLOSSARY ... 65

APPENDICES ... 66

Appendix A – Government’s Laws, Regulations, and Decrees ... 66

Appendix B – Table of Data ... 67

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Chantigy Jacinda

Appendix C – Normality Test ... 69

Appendix D – Interview Questions for Doctors ... 70

Appendix E – Interview Questions for Pharmacists ... 71

Appendix F – Interview Questions for Pharmaceutical Company’s Workers ... 71

REFERENCES ... 72