Financial Performance Analysis at Microfinance Institutions: Case Study at Regional Business Entities Bogor Regency

Regionally Business Entities (BUMD) are business entities whose capital is wholly or largely owned by the regional government, consisting of regional public companies and regional limited liability companies. Bogor Regency has several Regional Business Entities (BUMD) operating in various sectors, both strategic sectors that require regulation by the government, as well as commercial sectors that are not specifically regulated. Microfinance Institutions (LKM) are financial institutions established to provide business development and community empowerment services, either through loans or financing in micro-scale businesses to members and the community. PT Microfinance Institution (PT LKM) Bogor is a company originating from the Bogor District Credit Union (PD. PK), in accordance with applicable regulations and its legal form it has become PT LKM Bogor. PT LKM Bogor is located at Jalan KSR Dadi Kusmayadi No. 6B Ruko Citra Nusa, Kel. Tengah, Kec. Cibinong, Bogor Regency. The aim of this research is knowing the development of PT LKM's performance and the problems it is facing. The method for evaluating the performance of BUMD PT LKM Bogor was carried out based on the assessment of the health aspects of DIR Decree Number 30/SK/KEP/DIR dated 30 April 1997 concerning Procedures for Assessing the Health Level of Rural Banks and was guided by the Decree of the Minister of Finance of the Republic of Indonesia No. 826/KMK.013/1992. The aspects assessed in determining the level of company health include capital aspects, productive asset quality aspects, management aspects, profitability aspects and liquidity aspects. Based on the results and discussion above, the conclusions of this research are as follows: PT LKM's performance from 2018-2022 shows UNHEALTHY conditions. One of the reasons why PT LKM's health value is so small is because the quality of its productive assets, which have the greatest weight in determining the company's health level, has very little value.