Measuring Financial Performance of Semen Indonesia Amid Competition with Chinese Cement Producer

The cement industry is an essential for a nation's economy development as this binder is a building material used for infrastructure and commercial buildings. However, despite the rise in domestic demand, several key players in the cement industry from abroad entered Indonesia to establish new plants to develop their market especially players from China, such as PT Conch Cement Indonesia and PT Hongshi. China players who have just entered the Indonesian market are doing penetration by slamming the market price about 40 percent below the local price. Meanwhile, local cement players are more concerned with ensuring long-term business sustainability. Therefore, it is very easy to attract customer to switch from local product to Chinese product. This condition forced local cement companies to slightly reduce their prices, as the result company ended up with slim margin. This study was conducted to analyze the company's financial performance using Return on Assets, Return on Equity, Asset Turnover, Debt Equity Ratios, Financial Leverage, Current ratios and also financial health using the Altman Z-Score method model using the annual report of PT Semen Indonesia during the periods of 2018 – 2022. The results showed PT Semen Indonesia was in the financial healthy condition, with scores were as follows; 2018 was 3.88; 2019 was 2.51; 2020 was 2.50; 2021 was 2.74 and 2022 was 3.01. It seems PT Semen Indonesia has conduct risks regularly for considering internal and external conditions that may affect the company`s long term plans and achievement of company’s goals and performances.