DEVELOPMENT STRATEGY OF PLANTATION SUB SECTOR LISTED IN INDONESIA STOCK EXCHANGE TO ENHANCE COMPANIES’ PERFORMANCE

Abstrak

Plantation as integral part from Agriculture Sector is one of sector that has important and strategic role in the national development. The Plantation Sub Sector in its production has excellent potential. In fact, the Ministry of Agriculture said that the plantation sub-sector is one of the agricultural sub-sector that can increase the country's foreign exchange and absorb labor. However, the performance of Agriculture Sector showed poor and less attractive to the Investor. Therefore, the aim of this study is to know the influence of internal factors that are Return On Investment (ROI), Earnings Per Share (EPS), Dividend Per Share (DPS), Debt To Equity Ratio (DER) and external factors that are Inflation, Exchange Rate, and Interest Rate whether simultaneously and/or partially toward Stock Returns in Plantation Sub Sector. It also to formulize the strategy of Plantation Sub Sector Company in enhancing performance of Stock Returns. Company data, samples, annual reports and financial reports that used in this study as many as 11 companies from the Plantation Sub Sector listed in Indonesia Stock Exchange during the year 2012 – 2016. These data uses secondary data, with time series and cross section also using Panel Data Regression.
The result showed that internal factors (ROI, EPS, DPS, DER) and external factors (Inflation, Exchange Rate, and Interest Rate) simultaneously have a significant influence on Stock Returns. Meanwhile, only ROI and external factors (Inflation, Exchange Rate, and Interest Rate) partially have a significant influence on Stock Returns. ROI variable become a reference in creating strategy for Plantation Sub Sector Companies. From performance of ROI during research period, it will be obtained the category for each companies. Company category using quadrant matrix, which there are 4 quadrants. Each Quadrant will be resulted the strategy for company based on their performance in Annual Report regarding to enhance ROI values.
Keywords: ROI, EPS, DPS, DER, inflation, exchange rate, interest rate, strategy.