| 116 | Keywords: Financial Performance; Good Corporate Governance; Profitability Corresponding Author: Sophie Tiara Adriaty: Tel +62 251 8622986 E-mail: sophieadriaty@gmail.com Jurnal Keuangan dan Perbankan, 23(1):116–130 , 2019 http://jurnal.unmer.ac.id/index.php/jkdp Article history: Received: 2018-09-29 Revised: 2018-12-28 Accepted: 2019-01-19 ISSN: 2443-2687 (Online) ISSN: 1410-8089 (Print) A determinant of State-Owned Enterprises profitability with an independent board of commissioners as moderation variables Sophie Tiara Adriaty, Budi Purwanto, Wita Juwita Ermawati Department of Management Science, Faculty of Economics and Management IPB Graduate School (Bogor Agriculture University) Kampus IPB Dramaga, Jl. Raya Dramaga, Bogor, 16680, Indonesia Abstract Corporate governance drives the control function so that management could manage the corporate more effective. Good corporate governance could be the factor that boosts financial management to enhance profitability. This study examines the moder- ated effect of the independent commissioner proportion to the interaction between liquidity, capital structure, and sales growth to profitability. This study using purposive sampling technique, there are four state-owned enterprises (SOEs) which fit the criteria. The analysis method used in this research is moderated regression analysis on panel data. The results of the study show that liquidity and the proportion of independent commissioners influence the profitability of the company. SOEs needs to reduce the allocation of funds to current assets. Optimizing the performance of the SOEs board of commissioners also needs to be improved. The supervisory function carried out by the board of commissioners will affect operational activities so that managers will be more motivated to utilize current assets for operational investment and the company’s cur- rent assets can be used optimally. Increasing the proportion of independent commission- ers will also increase oversight of debt so that the condition of the company’s capital structure can be optimized through the reduction of debt from SOEs. Abstrak Penerapan GCG berperan dalam fungsi pengawasan, sehingga manajemen seharusnya dapat mengelola perusahaan dengan lebih efektif. Oleh karena itu GCG dapat menjadi faktor yang mendorong kinerja keuangan perusahaan untuk dapat meningkatkan profitabilitas. Penelitian ini bertujuan untuk menguji pengaruh moderasi dari proporsi dewan komisaris independen terhadap hubungan antara likuiditas, struktur modal, dan pertumbuhan penjualan terhadap profitabilitas. Melalui teknik purposive sampling didapatkan empat perusahaan dengan kriteria BUMN go public yang pernah mengalami kerugian tahun 2011-2016. Metode analisis yang digunakan adalah analisis regresi moderasi (MRA) data panel. Hasil penelitian menunjukkan bahwa likuiditas dan proporsi dewan komisaris independen berpengaruh terhadap profitabilitas perusahaan. BUMN perlu mengurangi alokasi dana pada aktiva lancar. Optimalisasi kinerja dewan komisaris BUMN juga perlu ditingkatkan. Fungsi pengawasan yang dilakukan dewan komisaris akan memengaruhi aktivitas operasional sehingga manajer akan lebih terdorong untuk memanfaatkan aset lancar untuk investasi operasional dan aset lancar perusahaan dapat digunakan dengan optimal. Peningkatan proporsi dewan komisaris independen juga akan meningkatkan pengawasan terhadap utang, sehingga kondisi struktur modal perusahaan dapat lebih optimal melalui pengurangan utang BUMN. How to Cite: Adriaty, S. T., Purwanto, B., & Ermawati, W. J. (2019). A determinant of State- Owned Enterprises profitability with an independent board of commissioners as moderation variables. Jurnal Keuangan dan Perbankan, 23(1), 116-130. https:// doi.org/10.26905/jkdp.v23i1.2519 This is an open access article under the CC–BY-SA license JEL Classification: G31, G34 Kata Kunci: Kinerja Keuangan; Good Corporate Governance; Profitabilitas