Abstract

The government has provided additional capital investment to help improve the capital structure and increase business capacity in order to increase the profitability of state-owned enterprises (SOEs). In addition, additional capital investment is also given to SOEs in order to carry out a special government assignment. This research aims to see if the additional capital investment has been used effectively and efficiently in improving the structure of capital and in generating profit. To achieve the goal of research, statistic descriptive and financial ratios are conducted. The results showed that in general the additional capital was used well in improving the capital structure of the debt ratio and debt to equity ratio. In addition, the additional capital has also increased return on equity even though it has not been efficient in increasing return on asset.