Title: Government policy and cigarette industry performance in Indonesia

Authors: Rediyanto Putra; Oryza Ardhiarisca

Addresses: Accounting Department, Universitas Negeri Surabaya, Jl. Ketintang Surabaya, East Java, Indonesia ' Politeknik Negeri Jember, Jl. Mastrip Kotak Pos 164, Sumbersari, Jember, East Java, Indonesia

Abstract: The objective of this study is to examine the level of performance differences of cigarette industry companies listed on the Indonesia Stock Exchange (IDX) before and after the implementation of government policy that called PP. 109 in 2012. The research was conducted by using paired t-test. The results showed that there were significant differences in the level of bankruptcy and profitability potential before and after the application of PP. 109 of 2012. The results of the study failed to find any significant differences in the level of liquidity and solvency before and after the application of PP. 109 of 2012. The implications of this study based on the conclusions of the research results indicate that the application of PP No. 109 of 2012 needs to be reviewed again and need other solutions that can be done to maintain the operational sustainability of tobacco companies.

Keywords: bankruptcy; government policy; liquidity; profitability; solvability; Indonesia.

DOI: 10.1504/IJPSPM.2021.114038

International Journal of Public Sector Performance Management, 2021 Vol.7 No.2, pp.139 - 155

Received: 28 May 2018
Accepted: 01 Apr 2019
Published online: 08 Apr 2021 *

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