Title: INTEREST COSTS AND INTEREST REVENUE BEFORE AND DURING THE IMPLEMENTATION OF NOTIONAL POOLING IN THE CASH MANAGEMENT OF PT SEMEN INDONESIA (PERSERO) TBK.
Author: DYAH ISNAINI PUSPITASARI
Item Type : Thesis (Thesis)
Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
This research aims to determine the difference in average interest costs and interest income before and when Semen Indonesia implemented notional pooling. The hypotheses proposed are: (1) The average interest cost of the cash management method without notional pooling is greater than the average interest cost of the cash management method with notional pooling and (2) The average interest income of the cash management method without notional pooling is greater small compared to the average interest income of the cash management method with notional pooling. The number of companies used as samples were 6 companies participating in the Semen Indonesia notional pooling. Data collection was carried out by looking at the monthly financial reports of each company participating in notional pooling for the period January 2012 to December 2012 (for the period before notional pooling was implemented) and for the period June 2013 to July 2014 (for the period when notional pooling was implemented) to calculate costs interest and interest income. The results of this research state that the application of notional pooling in cash management has not shown the results as expected in terms of interest costs, namely that the average interest costs before implementing notional pooling are smaller than when notional pooling is implemented. Interest costs when implementing notional pooling are greater than before implementing notional pooling because the funding needs of notional pooling participants continue to increase and are met more by bank loans than notional pooling loans. Judging from interest income, the results show that interest income when notional pooling is implemented is greater than before notional pooling is implemented. This shows that the application of notional pooling has a positive impact on interest income. The greater interest income when notional pooling was implemented was due to the increase in the cash and cash equivalents of notional pooling participants and the increase in the deposit insurance institution (LPS) interest rate as an indicator of bank deposit interest rates and notional pooling interest.
Keywords: interest expense, interest income, cash management, notional pooling
Sources: http://repository.unair.ac.id/39450/
