INTERNATIONAL JOURNAL FOR INNOVATIVE RESEARCH IN MULTIDISCIPLINARY FIELD ISSN: 2455-0620 Volume - 4, Issue - 3, Mar – 2018 Monthly, Peer-Reviewed, Refereed, Indexed Journal with IC Value: 86.87 Impact Factor: 5.60 Publication Date: 31/03/2018 Available online on – WWW.IJIRMF.COM Page 73 Financial Distress Analysis on Indonesia Stock Exchange Companies AyuKurnia Sari 1 , Hendra Saputra 1 , AndysahPuteraUtama Siahaan 2 1 Faculty of Social Science, Universitas Pembangunan Panca Budi, Medan, Indonesia 2 Faculty of Science and Technology, Universitas Pembangunan Panca Budi, Medan, Indonesia 1. INTRODUCTION: Perpetrators in the foreign exchange market also see there will be movement in the currency as investors will be more sensitive to risk [11][12]. Investors are shifting to safe currencies such as the yen that rose to the highest point in 14 years against the US dollar. It threatens shares of Japanese exporters. Facing the possibility of default of Dubai World debts, the monetary authorities in several countries simultaneously take several steps to reduce the above domino effect of delay. India's central bank, The Reserve Bank of India, will request a report from banks in India on credit disbursements to Dubai World, as Bank of India Vice Governor ShymalaGopinath. China's central bank, Bank of China, said it did not channel credit to Dubai World. UniCredit Italy and Taiwan hastily declared no receivables to Dubai World. Similar cases of financial difficulties experienced by Dubai World, on a national scale also occur in Indonesia, among others, in Bank Century and PT Texmaco. The controversy of the government bailout of Rp 6,762 trillion to Century Bank from November 23, 2008, to July 21, 2009, stems from the company's inability to fulfill its obligations at the clearing session at Bank Indonesia on November 13, 2008 (Saroha magazine, 2009). Based on the financial statements of PT. Bank Century, Tbk. as of 31 October 2008, Capital Adequacy Ratio (CAR) indicates the figure -35.92% (the minimum requirement set by Bank Indonesia 8%), Return on Assets (ROA) of -0.5209, Return on Equity (ROE) of -9.8163, Loan to Deposit Ratio (LDR) of 93.16%. The severe financial figures of Bank Century, among others, are caused by the loss of Forex Securities (SSB) of US $ 76 million and US $ 45 million due on November 3, 2008, because they have not received the payment until 20 November 2008. Determination of the default status of these earning assets has undermined the income of Bank Century for the loss of earning assets. Also, the correction of interest recognition amounted to Rp 390 billion, which is not derived from cash receipts, and the shortage of Allowance for Asset Losses (PPA) of Rp 59 billion. At the same time, Bank Century also has a Third Party Fund (DPK) obligation which was delayed its cumulative payment up to November 20, 2008, amounting to Rp.746.5 billion and the position of the balance of Bank Century demand per 20 November amounted to Rp.1.96 billion. It resulted in higher bank liquidity pressure that Bank Century was unable to participate in clearing on November 21, 2008, and taken over by the government through the Deposit Insurance Corporation (LPS) on November 21, 2008 (Joint Press Release of Bank Indonesia-LPS dated November 21, 2009). Since then the government has disbursed a bailout to save Century Bank in four stages as at the beginning of this paragraph. On October 3, 2009, Bank Century was officially renamed to Bank Mutiara and was approved by Bank Indonesia Decision Number 11/47 / KEP.GBI / 2009 dated September 16, 2009. This change is in line with the improvement of the company's financial performance up to the third quarter 2009. The company recorded a profit of Rp 237.3 billion; Abstract: The formulation of the problem is whether there are differences in the average financial ratios between companies experiencing financial distress with companies that do not experience financial distress? The purpose of this study is the difference in financial ratios between companies experiencing financial distress with companies that do not experience financial distress. Financial Distress (FD) is a broad concept consisting of several situations in which a company faces financial difficulties. Type of research The relationship among the variables studied is the corresponding relationship of financial ratios between companies experiencing FD and NFD. The number of manufacturing companies listed on the Indonesia Stock Exchange is 134 companies. Scale ratio used in the research obtained through the calculation of research data using Microsoft Excel. While data analysis using SPSS. The conclusions of financial ratios in the two year period and one year before the occurrence of financial distress are Profit margin (X1), ROA (X2), DAR (X3). Current liabilities to assets ratio (X4), EAR (X6), LTDER (X7), Times interest earned (X8), Current ratio (X9). Current assets to total assets ratio (X10), Net working capital to total assets ratio (X11), Net Fixed assets to total assets ratio (X12). Cash ratio (X13), sales to assets ratio (X14), CFTS (X16), and CFTL (X17) are univariate significantly between companies experiencing financial distress and those without financial distress. These findings support the conclusions of previous studies conducted by Almilia (2006). The established model was able to predict the condition of financial distress and non-financial distress in two years and one year before the incident respectively of 96.1% and 93.4%. Models formed based on financial ratios in the two-year period before the occurrence of financial distress have a higher prediction accuracy than the model established by financial ratios in the two-year period before the occurrence of financial distress. Key Words: Financial Distress, UniCredit, Texmaco,