UNIMAL Open Conference System, 2nd International Conference on Finance Economics and Business (ICOFEB)

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Prospects for Development of Palm Plantation in Indonesia: Financial Perspective
Husaini Husaini, Nurhasanah Nurhasanah, Nurlela Nurlela

Last modified: 2023-11-21

Abstract


This research aims to analyze the prospects for developing plantation businesses in Indonesia from a financial aspect. The indicator used to see the company's prospects is profitability and is used as the dependent variable. The independent variables used are asset turnover (TATO), company size and debt. The data collection technique used a purposive sampling method and 15 companies were selected with 105 observations from 2016-2022. Data were analyzed using panel data regression through the E-Views program. The research results show that the TATO and Size variables have a positive and significant effect on profitability. This shows that the prospects for palm oil development in Indonesia are relatively good from a financial perspective. Then Debt has a negative and significant effect on profitability. This means that the higher the debt, the lower the prospects for palm oil development in Indonesian companies. It is hoped that the results of this research will enrich the knowledge and information available to investors regarding the prospects for oil palm plantations in Indonesia.

 

 


Keywords


Profitability, TATO, Size and Debt