DONIE WIJATMIKA

MINING
ECONOMIC
COURSE
INTRODUCTION
OF BASIC
FINANCE
WHAT IS FINANCE OVERVIEW
FINANCE

THE
GOAL OF
THE CFO
4 BASIC
PRINCIPLES
OF
FINANCE
 WHAT IS FINANCE
THE STUDY OF HOW PEOPLE AND BUSINESSES EVALUATE
INVESTMENTS AND RAISE CAPITAL TO FUND THEM. (-- HOW TO
GET AND USE MONEY)

DEFINED AS THE MANAGEMENT OF MONEY AND INCLUDES

ACTIVITIES LIKE INVESTING, BORROWING, LENDING, BUDGETING,
SAVING, AND FORECASTING. THERE ARE THREE MAIN TYPES OF
FINANCE: (1) PERSONAL, (2) CORPORATE, AND
(3) PUBLIC/GOVERNMENT.
 CFO’S GOAL
THE GOALS MUST BE CONSISTENT WITH THE MISSION OF THE
CORPORATION TO MAXIMIZE FIRM VALUE SHAREHOLDER’S
WEALTH (AS MEASURED BY SHARE PRICES).

DIRECTS A COMPANY'S FINANCIAL GOALS, OBJECTIVES, AND

BUDGETS. THEY OVERSEE THE INVESTMENT OF FUNDS HELD BY THE
COMPANY, WEIGHING UP AND MANAGING ASSOCIATED RISKS.

CREATE VALUE OR PROTECT VALUE?

4 BASIC PRINCIPLES OF FINANCE
MONEY HAS A TIME VALUE

THERE IS A RISK-RETURN TRADE-OFF

CASH FLOWS ARE THE SOURCE OF VALUE.

MARKET PRICES REFLECT INFORMATION

 SIX
STAGES
OF
MINING
LIFE
CYCLE
 THE CFO AND FINANCE FUNCTION
IN A 4.0 WORLD
A KEY ROLE OF THE CFO AND THE FINANCE
FUNCTION IS TO COMMUNICATE THE VALUE OF
THE ORGANISATIONTO STAKEHOLDERS TO
ENABLE THEM TO MAKE DECISIONS. HOWEVER,
THE NATURE OF VALUE HAS CHANGED IN THE
LAST 30YEARS.
THE ROLE, SIZE AND SHAPE OF FINANCE
IN A 4.0 WORLD
 Financial stakeholders Wider stakeholders

Information for management Information for external users

FINANCE
FOCUS Financial and non-financial
Financial information
information
IN A 4.0
WORLD
Backward looking Forward looking

More transparent More trusted

STAKEHOLDERS
 TIME VALUE OF MONEY CONCEPT

THE TIME VALUE OF MONEY CONCEPT STATES THAT CASH RECEIVED

TODAY IS MORE VALUABLE THAN CASH RECEIVED AT SOME POINT IN
THE FUTURE. THE REASON IS THAT SOMEONE WHO AGREES TO
RECEIVE PAYMENT AT A LATER DATE FOREGOES THE ABILITY TO
INVEST THAT CASH RIGHT NOW. THE ONLY WAY FOR SOMEONE TO
AGREE TO A DELAYED PAYMENT IS TO PAY THEM FOR THE PRIVILEGE,
WHICH IS KNOWN AS INTEREST INCOME.
 TIME VALUE OF MONEY CONCEPT

THE TIME VALUE OF MONEY CONCEPT STATES THAT CASH RECEIVED

TODAY IS MORE VALUABLE THAN CASH RECEIVED AT SOME POINT IN
THE FUTURE. THE REASON IS THAT SOMEONE WHO AGREES TO
RECEIVE PAYMENT AT A LATER DATE FOREGOES THE ABILITY TO
INVEST THAT CASH RIGHT NOW. THE ONLY WAY FOR SOMEONE TO
AGREE TO A DELAYED PAYMENT IS TO PAY THEM FOR THE PRIVILEGE,
WHICH IS KNOWN AS INTEREST INCOME.
 TIME VALUE OF MONEY EXAMPLE

MANFAAT TIME VALUE OF MONEY ADALAH UNTUK

MENGETAHUI APAKAH INVESTASI YANG DILAKUKAN DAPAT
MEMBERIKAN KEUNTUNGAN ATAU TIDAK. TIME VALUE OF
MONEY BERGUNA UNTUK MENGHITUNG ANGGARAN.
 FUTURE VALUE
Nilai uang dimasa yang akan datang dari uang yang diterima
atau dibayarkan pada masa sekarang dengan
memperhitungkan tingkat bunga setiap periode selama jangka
waktu tertentu
RUMUS FV = Po (1+i)n
 FUTURE VALUE
Sebuah perusahaan memperoleh pinjaman modal dari suatu
bank sebesar Rp 15.000.000 untuk membeli peralatan
produksi dengan jangka waktu 5 tahun bunga yang dikenakan
sebesar 18 % per tahun berapa jumlah yang harus dibayar
oleh perusahaan tsb pada akhir tahun ke 5?
FV = Po (1+r)n
FV = Rp 15.000.000 (1+0.18)5
FV = Rp 34.316.366
 PRESENT VALUE
THE CURRENT VALUE OF A FUTURE SUM OF MONEY OR
STREAM OF CASH FLOWS GIVEN A SPECIFIED RATE OF
RETURN. FUTURE CASH FLOWS ARE DISCOUNTED AT THE
DISCOUNT RATE, AND THE HIGHER THE DISCOUNT RATE, THE
LOWER THE PRESENT VALUE OF THE FUTURE CASH FLOWS.
DETERMINING THE APPROPRIATE DISCOUNT RATE IS THE KEY
TO PROPERLY VALUING FUTURE CASH FLOWS, WHETHER THEY
BE EARNINGS OR OBLIGATIONS.
 PRESENT VALUE EXAMPLE
IF A STREAM OF CASH FLOWS CONSISTS OF +$100 AT THE
END OF PERIOD ONE, -$50 AT THE END OF PERIOD TWO, AND
+$35 AT THE END OF PERIOD THREE, AND THE INTEREST RATE
PER COMPOUNDING PERIOD IS 5%

NPV = PV1 + PV2 + PV3

NPV = 100 - 50 + 35 .
(1,05) 1 (1,05)2 (1,05)3
NPV = 95,24 – 45,35 + 30,23 = 80,12
SOAL FUTURE VALUE DAN PRESENT VALUE

HITUNGLAH FUTURE VALUE DAN PRESENT VALUE DARI SOAL-

SOAL BERIKUT
RISK / RETURN TRADEOFF
 RISK / RETURN TRADEOFF
RISK/RETURN TRADEOFF IS ALL ABOUT ACHIEVING THE FINE
BALANCE BETWEEN LOWEST POSSIBLE RISK AND HIGHEST
POSSIBLE RETURN. LOW LEVELS OF RISK ARE USUALLY ASSOCIATED
WITH LOW POTENTIAL RETURNS WHILE HIGHER LEVELS OF RISK
ARE NORMALLY EXPECTED TO YIELD HIGHER RETURNS. THE GRAPH
BELOW DEPICTS THE TYPICAL RISK / RETURN RELATIONSHIP.

RISK COMES FROM NOT KNOWING WHAT YOU ARE DOING. -

WARREN BUFFETT
 RISK

“RISIKO ADALAH KEMUNGKINAN

TERJADINYA PENYIMPANGAN DARI RATA-RATA
DARI TINGKAT PENGEMBALIAN YANG DIHARAPKAN YANG DAPAT
DIUKUR DARI STANDAR DEVIASI DENGAN MENGGUNAKAN
STATISTIKA.
“RISIKO DAPAT DIARTIKAN SEBAGAI KEMUNGKINAN TERJADINYA
HASILYANG TIDAK DIINGINKAN ATAU BERLA0ANAN DARI YANG
DIINGINKAN”
RISK TYPES
 SYSTEMATIC RISK
RISIKO SISTEMATIS SERING DISEBUT DENGAN ISTILAH RISIKO
PASAR, RISIKO UMUM, SYSTEMATIC RISK ATAU GENERAL RISK.
RISIKO SISTEMATIS PADA UMUMNYA SIFATNYA SISTEMATIK DAN
SULIT DIHINDARI. CONTOH RISIKO SISTEMATIK ADALAH
PENINGKATAN SUKU BUNGA (INTEREST RATE RISK), KENAIKAN
INFLASI (PURCHASING POWER / INFLATIONARY RISK) DAN
VOLATILITAS PASAR YANG TINGGI (MARKET RISK).
 UNSYSTEMATIC RISK
RISIKO NON SISTEMATIS SERING DISEBUT DENGAN ISTILAH RISIKO
SPESIFIK, RISIKO PERUSAHAAN ATAU UN-SYSTEMATIC RISK. RISIKO
NON SISTEMATIS PADA UMUMNYA DAPAT DIKELOLA DENGAN
MENGGUNAKAN PORTOFOLIO. CONTOH PORTOFOLIO INVESTASI
ADALAH REKSADANA. REKSADANA PADA UMUMNYA TERDIRI DARI
BEBERAPA JENIS SAHAM, OBLIGASI ATAU PRODUK-PRODUK
KEUANGAN LAINNYA. ISTILAH KERENNYA ADALAH DIVERSIFIKASI.
RISIKO NON SISTEMATIS DAPAT DIKELOLA DENGAN
MENGGUNAKAN DIVERSIFIKASI. CONTOH RISIKO NON SISTEMATIS
ADALAH: RISIKO LIKUIDITAS (LIQUIDITY RISK), RISIKO
KEBANGKRUTAN (FINANCIAL / CREDIT RISK) DAN RISIKO TUNTUTAN
HUKUM (OPERATIONAL RISK).
 RETURN
A RETURN, ALSO KNOWN AS A FINANCIAL RETURN, IN ITS
SIMPLEST TERMS, IS THE MONEY MADE OR LOST ON AN
INVESTMENT. A RETURN CAN BE EXPRESSED NOMINALLY AS THE
CHANGE IN DOLLAR VALUE OF AN INVESTMENT OVER TIME. A
RETURN CAN BE EXPRESSED AS A PERCENTAGE DERIVED FROM THE
RATIO OF PROFIT TO INVESTMENT.
 RETURN
POSITIVE RETURN
A POSITIVE RETURN IS THE PROFIT, OR MONEY MADE, ON AN
INVESTMENT OR VENTURE

NEGATIVE RETURN
A NEGATIVE RETURN IS THE LOSS, OR MONEY LOST, ON AN
INVESTMENT OR VENTURE

Cost of Equity = Rf + β*(Rm – Rf)

 CAPITAL ASSET PRICING MODEL
CAPM = Cost of Equity = Rf + β*(Rm – Rf)

Image: CFI’s Math for Corporate Finance Course

 CAPITAL ASSET PRICING MODEL
It trades on the NYSE and its operations are based in the United
States
Current yield on a U.S. 10-year treasury is 2.5%
The average excess historical annual return for U.S. stocks is 7.5%
The beta of the stock is 1.25 (meaning it’s average weekly return is
1.25x as volatile as the S&P500 over the last 2 years)
Let’s break down the answer using the formula from above in the
article:
Expected return = Risk Free Rate + [Beta x Market Return Premium]
Expected return = 2.5% + [1.25 x 7.5%]
Expected return = 11.9%
 FINANCIAL
REPORTING
 THE OBJECTIVES & PURPOSES OF
FINANCIAL REPORTING
Providing information to management of an organization which is used for the
purpose of planning, analysis, benchmarking and decision making

Providing information to investors, promoters, debt provider and creditors

which is used to enable them to male rational and prudent decisions
regarding investment, credit etc

Providing information to shareholders & public at large in case of listed

companies about various aspects of an organization.
 THE OBJECTIVES’S FR CONTD
Providing information about the economic resources of an organization, claims to
those resources (liabilities & owner’s equity) and how these resources and claims
have undergone change over a period of time

Providing information as to how an organization is procuring & using various

resources

Providing information to various stakeholders regarding performance

management of an organization as to how diligently & ethically they are
discharging their fiduciary duties & responsibilities
 THE OBJECTIVES’S FR CONTD

Providing information to the statutory auditors which in turn facilitates audit

Enhancing social welfare by looking into the interest of employees, trade union &
Government
 THE STATEMENT OF FINANCIAL POSITION (BALANCE
SHEET) TELLS YOU WHETHER THE COMPANY CAN PAY
ITS BILLS ON TIME, ITS FINANCIAL FLEXIBILITY TO
ACQUIRE CAPITAL AND ITS ABILITY TO DISTRIBUTE
STATEMENT CASH IN THE FORM OF DIVIDENDS TO THE COMPANY'S
OF OWNERS. IN SHORT, IT IS A VIEW OF THE COMPANY’S
FINANCIAL FINANCIAL POSITIONS AS OF THE DATE IT IS PREPARED.
POSITION

THE KEY BALANCE SHEET ACCOUNTING

EQUATION IS ASSETS = LIABILITIES + OWNERS EQUITY
 ALSO KNOWN AS THE PROFIT AND LOSS STATEMENT
OR P&L TELLS YOU BOTH
THE EARNINGS AND PROFITABILITY OF A BUSINESS. THE
STATEMENT P&L IS ALWAYS FOR A SPECIFIC PERIOD OF TIME, SUCH
OF AS A MONTH, A QUARTER OR A YEAR.
COMPREHEN
SIVE INCOME THE PERIODIC NATURE OF THE INCOME STATEMENT IS
ESSENTIAL AS THIS ALLOWS USERS TO COMPARE
RESULTS FOR THE COMPANY OVER SIMILAR PERIODS
OF TIME, AND TO THE RESULTS OF OTHER FIRMS FOR
THE SAME PERIOD. DEPENDING ON THE INDUSTRY,
YEAR OVER YEAR COMPARISONS THAT ELIMINATE
SEASONAL VARIABLES CAN BE ESPECIALLY USEFUL.
 FINANCIAL STATEMENT THAT SHOWS HOW CHANGES
STATEMENT IN BALANCE SHEET ACCOUNTS AND INCOME
OF AFFECT CASH AND CASH EQUIVALENTS, AND BREAKS
CASHFLOW THE ANALYSIS DOWN TO OPERATING, INVESTING, AND
FINANCING ACTIVITIES. ESSENTIALLY, THE CASH FLOW
STATEMENT IS CONCERNED WITH THE FLOW OF CASH
IN AND OUT OF THE BUSINESS.
 THE STATEMENT OF CHANGES IN EQUITY PRESENTS AN
ENTITY’S PROFIT OR LOSS FOR A REPORTING PERIOD,
STATEMENT ITEMS OF INCOME AND EXPENSE RECOGNISED IN
OF OTHER COMPREHENSIVE INCOME FOR THE PERIOD,
CHANGES IN THE EFFECTS OF CHANGES IN ACCOUNTING POLICIES
EQUITY AND CORRECTIONS OF ERRORS RECOGNISED IN THE
PERIOD, AND THE AMOUNTS OF INVESTMENTS BY, AND
DIVIDENDS AND OTHER DISTRIBUTIONS TO, EQUITY
INVESTORS DURING THE PERIOD.
 STRUKTUR STATEMENT OF
FINANCIAL POSITION
POS URAIAN
ASET (LIKUIDITAS) ASET LANCAR
ASET TIDAK LANCAR
LIABILITAS (JATUH TEMPO) LIABILITAS JANGKA PENDEK
LIABILITAS JANGKA PANJANG
EKUITAS MODAL DISETOR
SALDO LABA
LABA TAHUN BERJALAN
 STRUKTUR STATEMENT OF
COMPREHENSIVE INCOME
POS URAIAN
PENJUALAN
BEBAN POKOK PENJUALAN
LABA KOTOR
BEBAN USAHA
BEBAN PEMASARAN
BEBAN UMUM DAN ADMINISTRASI
LABA USAHA
PENDAPATAN (BEBAN) DI LUAR USAHA
PENDAPATAN DI LUAR USAHA
BEBAN DI LUAR USAHA
LABA SEBELUM PAJAK
PAJAK PENGHASILAN
LABA BERSIH
 STATEMENT OF CASH FLOW
POS
ARUS KAS DARI AKTIVITAS OPERASI
POS
ARUS KAS DARI AKTIVITAS INVESTASI
ARUS KAS DARI AKTIVITAS OPERASI
ARUS KAS DARI AKTIVITAS PENDANAAN
ARUS KAS DARI AKTIVITAS INVESTASI
KENAIKAN (PENURUNAN)
ARUS KAS DARI AKTIVITAS NETO – KAS DAN
PENDANAAN
BANK
KAS DAN BANK AWAL TAHUN
KAS DAN BANK AKHIR TAHUN
URAIAN
PENERIMAAN DARI AKTIVITAS OPERASI
PEMBAYARAN UNTUK AKTIVITAS OPERASI
URAIAN
PENERIMAAN DARI AKTIVITAS INVESTASI
PENERIMAAN DARI AKTIVITAS OPERASI
PEMBAYARAN UNTUK AKTIVITAS INVESTASI
PEMBAYARAN UNTUK AKTIVITAS OPERASI
PENERIMAAN DARI AKTIVITAS PENDANAAN
PENERIMAAN DARI AKTIVITAS INVESTASI
PEMBAYARAN
PEMBAYARAN UNTUK
UNTUK AKTIVITAS
AKTIVITAS PENDANAAN
INVESTASI
PENERIMAAN DARI AKTIVITAS PENDANAAN
 SOAL FINANCIAL REPORTING
1. SUSUNLAH LAPORAN POSISI KEUANGAN PT INDOCOAL LESTARI

2. SUSUNLAH LAPORAN ARUS KAS PT INDOCOAL LESTARI

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THANK YOU
Donie Wijatmika

+62 85888051286
dwijatmika7310@gmail .com

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