| This research is objected to analyze financial performance of PT. Telekomunikasi Indonesia Tbk. before and after acquisition PT. Aria West International. One of the important factors for planning firm’s financial is by doing TELKOM’s performance measure and for investors can be used as guidance for investing. Mostly, company’s outlook is healthy and continuing growth, but in the reality company’s performance is stagnant. Asset acquisition has been done in July 2003. Period that will be analyzed are four years before and after acquisition. This is case study that analyzing TELKOM’s performance before and after acquisition. Economic Value Added (EVA) is the method to analyze TELKOM’s performance and Wilcoxon’s rank used to test the alternative hypothetical that show TELKOM’s average increasing after acquisition. From the result of EVA average TELKOM seem able to give the value added for company after acquisition, and from Wilcoxon test, it also showed that there is increase in average TELKOM’s performance after acquisition. This situation mainly caused by the significant growth from the income side, especially from telephone, cell phone, interconnection, data and internet. Increasing income also followed by increasing cost but it still smaller than the income growth. For maintaining the good performance and to achieved better performance in the future, TELKOM should optimized all the sources that could create new facilities for public which create new products and new services for customers and reduce cost which the programs have already erased from TELKOM operational. Management risk should be implemented at all business unit for avoiding incidents that could impact the losses like what happened in arbitration case that have been done by PT. Aria West International. As for the investors, they should more careful in the investment decisions at the company doing acquisition strategy because not every acquisition able to increased the company’s value. |