DEBT RESTRUCTURING IN INDONESIA: MERGER AND ACQUISITION PERSPECTIVE

The number of companies undergoing debt restructuring in
Indonesia has significantly increased each year. Debt
restructuring, as an alternative to mergers and acquisitions,
has become a strategy for many companies facing financial
challenges, especially in the credit sector. The purpose of this
research is to conduct an in-depth examination of debt
restructuring in Indonesian companies during the period 2003
- 2022. This study utilizes a method involving the analysis of
pre-test and post-test financial performance ratios of
companies after debt restructuring. The main financial ratios
focused on in this research are liquidity ratio, solvency ratio,
profitability ratio, and efficiency ratio. The data period used for
the study includes two years before (t-2) and two years after
(t+2) the occurrence of debt restructuring. The study involves
44 samples of companies in Indonesia that underwent debt
restructuring during the years 2003 - 2022, processed through
SPSS statistical analysis. Based on the ratio calculations, this
research concludes that debt restructuring has caused
significant differences in the Cash Ratio, Debt to Asset Ratio,
Profit Margin, Return to Asset, Return to Equity, and Asset
Turnover.