PERFORMANCE ANALYSIS OF REGIONAL GOVERNMENT OWNED ENTERPRISES BANK PERKREDITAN RAKYAT MAJATAMA AND THE REGIONAL WATER SUPPLY COMPANY OF THE MOJOKERTO REGENCY GOVERNMENT IN FINANCIAL PERSPECTIVE

Purpose — The purpose of this study is to evaluate the performance of the Mojokerto Regency 2019 Regional Owned Enterprises (BUMD). Design/methodology/approach — The research method used is descriptive qualitative analysis. The stages of preparatory research determine the techniques used in the analysis. The next stage gathers indicators in measuring financial performance. Determine the criteria in accordance with the theory used for financial performance analysis. Collection and analysis of financial data of BPR Majatama and the Regional Water Company. Findings — The results of the study show that Majatama People's Credit Bank Study of the Gross Value of Bad Debt in July, August, September, and October 2019 are safe. Originality/value — This study evaluates the performance of the People's Credit Bank Majatama. It also evaluates the performance of the Regional Water Supply Company and provides performance recommendations. Practical Implication — The calculation of Gross and Net non-performing loans experiences a positive trend and is far from the maximum limit required by Bank Indonesia of 5%. Regional Water Supply Companies in July, August, September, and October 2019, management is advised to control the general administrative costs, increase revenue and reduce operating costs through efficiency and effectiveness to increase profits in the following month. Research Type Research Paper

company management and to support the company's goals in improving the ability to provide services to customers and to obtain optimal profits. Based on the publication of the Central Statistics Agency in the Mojokerto Regency in Figures as for the Gross Regional Income of the Mojokerto Regency based on the Price Applicable within the last 3 years are Whereas the Gross Regional Regional Income figure based on constant prices in the last 3 years are :

RESEARCH METHOD
This research method is intended to provide an overview of the stages used in performance analysis of the condition of the Rural Bank of Majatama and the Regional Water Supply Company of Mojokerto Regency by using a descriptive qualitative analysis method of financial data of Mojokerto Regency-Owned Regional Enterprises.

Research Stages
a. Stages of preparation namely formulating the objectives carried out the analysis. b. Define aspects to be analyzed.

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c. Select and determine the techniques that will be used in the analysis. d. Arrange measurement tools that are used as indicators in measurement and financial performance. Determine benchmarks or criteria according to the theory used for financial performance analysis. e. Processing of results from collecting data on performance and financial reports of the Bank Perkreditan Rakyat Majatama and the Regional Water Supply Company of Mojokerto Regency. f. Report from an analysis of the financial performance of the Majatama Rural Bank and Regional Water Supply Company of Mojokerto Regency.
Based on the stages of the implementation of the research that has been compiled, a framework is made into two groups, based on the object being evaluated, namely the Perkreditan Rakyat Majatama Bank and the Regional Drinking Water Company of Mojokerto Regency. The Framework for Thinking is adapted to the objectives of performance evaluation and financial statements.

Framework for Thinking a. PT Bank Perkreditan Rakyat Majatama
The method used is as follows:  Take into account service ratios such as service coverage, customer growth, level of complaint resolution, customer water quality and domestic water consumption; 5. Take into account operating ratios such as production efficiency, water loss rate, service operating hours, customer connection pressure, and water meter replacement; 6. Calculate Human Resources ratios such as the ratio of the number of employees, the ratio of employee training, and training costs to employee expenses. 7. Give a Conclusion.

Profile Bank Perkreditan Rayat Majatama
Bank Perkreditan Rakyat Majatama is a Regionally-Owned Business Entity engaged in Banking. The Majatama Rural Credit Bank has been operating since 1979 under the name Regional Bank Market Company, based on the Regional Regulation of the Second Level Regional District of Mojokerto Number 5 of 1979. Later in 1994, the name of the Regional Bank Regional Market Company was renamed as the Rural Bank Regional Market Level II Mojokerto Regency Based on Mojokerto Level II Regional Regulation Number 10 of 1994 concerning Regional Banks Rural Banks Regional Banks.
The purpose and objective of helping and encouraging economic growth and regional development in all fields and as one source of regional income in order to improve the standard of living of the people with the following efforts: a. Collecting funds from the public in the form of time deposits and savings, and/or other forms offered with it. b. Give financial credits to small businesses and/or rural communities as well as civil and private employees. c. Conducting other banking businesses as long as they do not conflict with the applicable laws and regulations.

b. Company Profile Perusahaan Daerah Air Minur Mojokerto
The Regional Water Supply Company is one of the regional-owned business units engaged in the distribution of clean water to the general public in every province, district, and municipality throughout Indonesia. Regional companies as a means of providing clean water are monitored and monitored by the regional executive and legislative apparatus.
Modern state-run water companies have existed since the Dutch colonial era. In 1962 Law No. 5 on Regional Enterprises and the PDAM has started to form until now. By its very nature, companies must perform two types of functions. First is to run an economic function, which is looking for profit and the second one is to carry out social functions related to the purpose of article 33 of the 1945 Constitution, namely managing businesses that control the lives of many people, especially the provision of clean and healthy water facilities for the community.
Regional Water Supply Company located in Mojokerto Regency, Pahlawan street no. 4 Mojokerto, East Java. It has a total of 82 employees and 12,117 active customers. The population of the service area is 280,000 and the administration population is 1,000,049. Business volume during semester II 2019 tends to decrease. The position of the financial statements as of August 31, 2019, compared to July 2019, explained that the business volume of PT. Bank Perkreditan Rakyat has increased. The percentage increase of 2.43% or Rp 1,890,388 thousand from Rp. 77,637,984.ribu to Rp. 79,528,372. The increase in income was due to an increase in several accounts, in the asset account, namely cash at 40.75%, placements at other banks 4.16%, loans granted 1.25%, fixed assets investing 0.89%. On the liability side, there were also increases including immediate liabilities of 24.48%, savings deposits of 7.01%, deposit deposits of 0.73%, and other liabilities of 6.06%.

Vol. 28, No. 3 December 2020 © Centre for Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University
However, on the other hand, there were some decreases including interest income to be received 13.72%, other assets 5.50%, and interest debt 0.75%. The position of the financial statements as of 31 October 2019 compared to September 2019 explained that the business volume of PT. The Majatama People's Credit Bank has increased. The percentage increase of 0.22% or Rp 143,891 thousand from Rp. 66,113,511 thousand to Rp. 66,257,402 thousand. The increase was due to several accounts experiencing an increase, among others, interest income to be received 15.05%, loans granted 4.67%, immediate liabilities 13.28%, interest loans 3.38%, savings deposits of 3.50% and liabilities another 5.19%.  of Rp. 185,524 thousand or 10.99%. The increase in overall profit was due to an increase in operating income by 11.97%. Placements with other banks' current accounts with 0.70%, Placements with other banks with savings of 15.82%, Placements with other banks with deposits of 7.00%, loans granted to non-bank third parties at 12.97%, provision of loans to non-bank third parties by 11.39%.

a. Capital Ratio
Calculation of capital adequacy ratio of PT. Bank Majatama Rural Credit is obtained by determining the value of the Capital Adequacy Ratio (CAR). CAR is obtained from comparing capital with risk-weighted assets multiplied by one hundred percent. The strategies to reduce the risk of non-performing loans that are still high include increasing collections on overdue loans, adding credit facilities, extending credit terms, and reducing loan principal arrears.
From the steps above, the increase in the credit debit or expansion tray is prioritized. By expanding, there is a positive domino effect, namely the achievement of annual work plans in terms of the amount of credit extended. As a result, loan interest income also has the potential to increase.
This step needs to get support from company elements, namely by maximizing the Human Resources function of credit marketing by increasing the amount or increasing capacity. In addition, it is necessary to create and implement an incentive policy towards staff related to the credit performance .

c. Profitability Ratio
Calculation of PT. Bank Perkreditan Rakyat Majatama is obtained by determining the value of Return on Assets (ROA), Return on Equity (ROE), and Operating Expense (BOPO) ratio. ROA is obtained by comparing earnings before tax to total assets while ROE is obtained by comparing earnings after tax to total equity. The BOPO ratio is obtained by comparing the value of operating expenses with the value of operating income. ROA PT. BPR Majatama in July and August explained that there was a decrease of 0.04%. This percentage suggests that the ability of bank assets to generate profits in August 2019 has decreased. In the ROE ratio described above occurs a value that decreases by 0.24%. Calculation of this ratio explains that the ability of capital owned to generate profits in August 2019 has decreased compared to the previous month. BOPO Ratio, calculation results of BOPO Ratio of PT. BPR Majatama showed an increase of 0.17% compared to July 2019. The meaning of the increase was an increase in the efficiency process of operational expenses and an increase in efforts to increase operating income.
ROA calculation above, explains that an increase of 0.11%. This percentage suggests that the ability of bank assets to generate profits in October 2019 has increased. In the ROE ratio described above a score of 0.28% occurred. The calculation of the ratio explains that the ability of capital owned to generate profits in October 2019 has increased compared to the previous month. BOPO Ratio, calculation results BOPO Ratio shows a decrease of 0.19% compared to September 2019. The meaning of the decline is a decrease in the process of operational load efficiency and a decrease in efforts to increase operating income even though the decrease ratio is not significant.

d. Liquidity Ratio
The calculation of the liquidity ratio of PT. People's Credit Bank Majatama is obtained by determining the value of the Current Ratio     Profitability aims to measure the company's ability to generate profits for a certain period and measure the level of effectiveness of management in carrying out the company's operations. The profitability of local water companies is measured using two indicators, namely Return on Equity and Operating Ratio.

b. Calculation of Performance Value of Financial Aspects
Calculation of Return On Equity by dividing net income from total equity. The July 2019 RoE value shows a positive number with a value of 2. The value shows the company's ability to generate profits using equity in July 2019 is not yet fully maximized. Regional Water Company is expected to maximize equity optimally due to the resulting profit of 0.012 of total equity. The August 2019 RoE value shows a positive number with a value of 2. The value shows the company's ability to generate profits using equity in August 2019 has not been fully maximized. Regional Drinking Water Companies are expected to maximize equity optimally due to the resulting profit of 0.014 of total equity. The September 2019 RoE value shows a positive number with value 2. This value shows that the company's ability to generate profits using the equity in September 2019 has not been fully maximized and optimally maximizes equity due to the resulting profit of 0.11 of total equity. The October RoE value shows a positive number with a value of 2. The value shows the company's ability to generate profits using equity in October 2019 is not fully maximized. Besides this, it is expected to maximize equity optimally due to the resulting profit of 0.11 of total equity. Operating Ratio is calculated by dividing Operating Expenses against Operating Revenues. Operating Ratios are concluded with a value of less than 3. Based on the measurement results show management is less able to perform efficiently and control operating expenses. In addition, management is expected to make more efforts to increase revenue so that the revenue value is higher to cover operating expenses. Value of income of Rp. 2,502,379,945.00 while the Operating expenses are Rp. 1,917,864,129.33 Based on the cost structure, it is known that administrative and general costs reach a ratio of 42.49% of the total operational costs. This percentage shows that administrative and general costs contributed significantly to the total operating costs in October 2019. For the month Furthermore, management is advised to control general administrative expenses. Liquidity is an indicator to assess a company's ability to meet its obligations. Liquidity is measured using two indicators namely Cash Ratio and Billing Effectiveness.
The cash ratio is calculated by dividing the amount of cash and cash equivalents by the number of current liabilities. Based on the results of the calculation of the cash ratio can be concluded very well with a value of 5 or conditions> 100%. This value explains that the amount of cash and cash equivalents in October 2019 is very high and able to meet/pay off the short-term debt that is due. The cash ratio assessment for October 2019 needs to be maintained and improved by continuing to carry out the company's cash flow control.
Billing Effectiveness is an indicator to show the ability to effectively manage sales results (Water Receivables) so that it becomes revenue. The effectiveness of billing is measured by dividing the number of water bill receipts by the number of water bills. Based on the measurement results, billing activities undertaken by management can be concluded either with a standard value of 5 or a condition of 101.65%. This achievement explains that the process of improving services related to quality, quantity, and continuity has been in full accordance with public expectations.
Solvency aims to determine the ability of assets to guarantee the long-term debt. Therefore, the calculation is to divide the number of assets by the number of liabilities. The calculation results show that the value of solvency in October 2019 amounted to> 200% or with a

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standard value of 5. This value explains that the value of assets is very high and total long-term debt is low. It was concluded that assets can guarantee the long-term debt. The assessment of the solvency ratio in October 2019 is maintained and enhanced by continuing to carry out debt repayment payments according to the agreed schedule. Scope of Technical Services. This indicator aims to determine the ability of Management in providing water services to its technical area. The formula for calculating the scope of technical services is to divide the number of people served compared to the total population of service areas. The calculation results show that the value of Technical Services Coverage is 1 with conditions/standards of only 2.28%. The assessment gives the meaning that service coverage is still low because <20%. One potential problem that can be identified is because the community's interest in subscribing is still low due to alternative water sources that are still widely available. So it is Customer Growth. Customer growth illustrates the activity in trying to increase the number of customers. The formula for calculating customer growth indicators is to divide the number of customers in this period minus the number of customers last period by the number of customers last period. The calculation results show that customer growth by 0.00% with a standard value of 1. This percentage explains that customer growth in July, August, September, and October 2019 is categorized as very low. need to improve the distribution service network so that it can continue to increase customer growth.

b. Calculation of Service Aspect Performance Value
Level of Complaints. This indicator illustrates the level of management activity in an effort to resolve water service complaints or other complaints. The formula used is to divide the number of customer complaints handled by the number of complaints. Based on the measurement results, the level of complaint resolution is very satisfying. Measurement figures indicate a standard value of 5 or 100%. In July, August, September, October 2019 the number of complaints was 23, 23, 26, 29 complaints and all complaints were handled properly and thoroughly. The performance aspect of the complaint resolution indicator that needs to be maintained is that the customer complaint service system has been well planned so that all complaints can be resolved according to customer expectations.
Customer Water Quality. This indicator illustrates the ability to serve customers with the quality of drinking water service (3K) in accordance with Permenkes No. 492 / Menkes / PER / V / 2010 concerning drinking water quality requirements. The formula used is to divide the number of tests that meet the requirements compared to the amount tested. Based on the test results, the water quality of customers in July, August, September, and October 2019 was concluded to have met the permissible limits based on Permenkes RI No. 416/ Menkes/Per/IX/1990 concern-ing water quality requirements. The total number of tests is 16 areas and all tests meet the requirements or 100%

Vol. 28, No. 3 December 2020 © Centre for Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University
Domestic Water Consumption. This measurement aims to determine the average level of water consumption per household customer in one month in the year concerned. The formula used to measure these indicators is to divide the average amount of water sold to domestic customers by the number of domestic customers. Calculation results show that domestic water consumption for July, August, September, and October 2019 amounted to 17.25%, 16.68%, 16.87%, 17.28% with a standard value of 1. The interpretation of the results of these measurements is water consumption domestic investment is still very low. One potential problem that can be identified is that alternative water sources are still widely available. So there is a need for a program to add a distribution pipeline system.

Production Efficiency
The indicator shows the level of efficiency in utilizing its paired capacity. Production efficiency is measured by dividing production realization by installed capacity. Based on the calculation results, the Production Efficiency Value is 5 with a standard> 90%. This explains that the level of production 2. Non-billed water Indicator to measure management's ability to control the volume of water sold through the pipeline distribution system. The indicator is calculated by dividing the distribution of water minus water sold by water distribution. The results of measurements in July 2019 showed that the rate of water loss reached a percentage of 25.66% with a value of 5. The results revealed that there were indications that as much as 25.66% of water was wasted because there were some improper pipe connections so there needed to be an improvement on the pipe. In addition, there is a need for regular supervision of the water distribution network to customers. The level of water loss in July 2019 is categorized as very low. The results of measurements in August 2019 showed that the level of water loss reached a percentage of 15.16% with a value of 5. The results revealed that there were indications as much as 15.16% of water was wasted because there were some improper pipe connections so there needed to be an improvement on the pipe. In addition, there is a need for regular supervision of the water distribution network to customers. The level of water loss in August 2019 is categorized as very low. The results of measurements in September 2019 showed that the level of water loss reached a percentage of 14.66% with a value of 5. The results revealed that there were indications that as much as 14.66% of water was wasted because there were some improper pipe connections so there needed to be an improvement on the pipe. In addition, there is a need for regular supervision of the water distribution network to customers. The level of water loss in September 2019 is categorized as very low. The results of measurements in October 2019 showed that the rate of water loss reached a percentage of 16.92% with a value of 5. The results revealed that there were indications that as much as 16.92% of water was wasted because there were some improper pipe connections so there needed to be an improvement on the pipe. In addition, there is a need for regular supervision of the water distribution network to customers. The level of water loss in October 2019 is categorized as very low.

Service Operation Hours
The indicator is used to determine the ability to provide drinking water services to its customers 24 hours a day continuously. The calculation formula is to divide the time of water distribution to customers by the evaluation period. Based on the measurement results, the service operating hours are carried out 21.6 hours per day with a standard value of 5. The achievement explains that the service operating hours are already very high and does not limit the distribution operating hours so that water usage by customers is not limited by time.

Water Pressure on Customer Connections
This indicator is used to determine the achievement of water pressure on the average customer pipe. The formula for calculating the water pressure indicator on customer connections is by dividing the number of customers served by the pressure of 0.7 bar by the number of customers in October 2019. Based on the measurement results, the ratio of water pressure at customer connections is 100% with a standard value of 5. The achievement explains that the pressure 0.7 bar of water in the Mojokerto area is evenly distributed. These positive results need to be maintained by continuing to check the water pressure on the customer's connection.

Customer Water Meter Replacement
Indicators used to assess management's ability to replace water meters. The formula used to assess the indicator is to divide the number of water meters of customers replaced by the number of customers. Based on the results of the calculation, the ratio of customer water meter replacement is 0% with standard value 1. The results explain there is a possibility that the customer water meter condition inspection program is not yet available. Need to budget funds for the procurement and replacement of customer water meters. This indicator is used to measure employee efficiency towards customers. To measure the ratio of the number of employees is to divide the number of employees by the number of customers divided by one thousand. The calculation results show that the standard value of the ratio of the number of employees is 5 or <6 people. This explains that the ratio of employees to customers is in the efficient category. The number of employees is in ideal condition and can cover the number of customers in the city of Mojokerto.