| There are three basic instruments to measure corporate financial performance, such as: Return on Equity, Return on Assets, and Return on Investment. But these methods are not good enough to measure the financial performance, because they didn’t consider the investor risk on their investment. According to these issues, a new calculation method and theory named Economic Value Added appeared. EVA method is different because this theory calculates cost of equity and considers shareholder’s benefit. As well a great value of ROA and ROE are not necessarily reflecting positive value of EVA. Researcher is using financial report of China Government Corporation named China Shanghai (Group) For Foreign Economic and Technological Cooperation or we can call it with China SFECO (Group) and the other is Indonesia public listing company named PT. Truba Alam Manunggal Engineering. These two companies are form a consortium company who is doing a power plant project with 2x30 MW capacity for Indonesia Government Electricity Company (PT. PLN (Persero)) in Bangka Belitung Island. Will these two companies survive and make a competitive advantage? According to this research report we can break through many people’s possesive thinking about ACFTA. At the beginning of ACFTA many company were experienced setback on their financial field, whether the project was terminated or captured by foreign companies from China. But based on this report, era ACFTA not only gave many chances for foreign companies, but also provide many chances for local companies to develop and earn some benefit. Through combination of new technology from abroad and market strategy from local company, they can have a competitive advantage to gain a market share and compete with another companies. Traditional methods like ROA and ROE can not reflected the true situation of financial performance in company. High liquidity ratio can’t guarantee the company had a great EVA value, on this report the value of EVA can relflect company financial performance more exactly. |