Debt Management and Effective Tax Planning Boost Firm Value in Indonesia’s Logistics Sector

Illustration by AI

The transportation and logistics sector serves as the backbone of the Indonesian economy, yet financial management remains critical for maintaining firm value in the eyes of investors. Recent research by Suci Ramadhani, Enggar Diah Puspa Arum, Wiralestari, and Ilham Wahyudi from the Universitas Jambi in 2026 reveals that a firm's strategic management of debt and tax planning has a direct impact on its market value.

Why Do Tax and Debt Management Matter?

In the investment world, firm value is a primary indicator of business success. For capital-intensive logistics companies, financial decisions—such as leverage (debt usage) and tax planning—are not merely operational issues; they serve as signals to investors regarding the company's future.

"Thin capitalization" (the dominance of debt in capital structure) and efficient tax planning are often viewed as strategies to optimize post-tax profits. However, the effectiveness of these strategies on market value in the transportation sector remains a compelling subject of study, particularly in the post-pandemic economic recovery era.

Research Approach

The research team conducted a quantitative analysis of 11 transportation and logistics companies listed on the Indonesia Stock Exchange (IDX) during the 2020–2024 period. Utilizing 55 units of analysis from annual financial reports, the study tested the influence of the Debt to Equity Ratio (DER) as a proxy for debt, and the Effective Tax Rate (ETR) as a proxy for tax planning, against firm value as measured by Tobin's Q ratio.

Key Findings: Positive Signals for Investors

The analysis yielded significant results:

·         Debt Has a Positive Impact: Debt usage (DER) has a positive and significant influence on firm value. This indicates that investors view debt as a signal of management’s confidence in future cash flows, while also benefiting from the "tax shield" effect.

·         Tax Efficiency is Profitable: Effective tax planning—characterized by a lower ETR—positively affects firm value. Management capable of reducing the tax burden legally is considered efficient, thereby increasing the net profit available to shareholders.

·         Simultaneous Influence: Combined, effective debt management and tax planning explain 55.9% of the variation in firm value within this sector.

Implications for Business

The research underscores that for companies in the logistics sector, maintaining debt ratios in accordance with regulations—such as Minister of Finance Regulation No. 169/PMK.010/2015—can be seen as a competitive advantage. Investors tend to respond positively to firms capable of balancing debt as a growth capital while simultaneously optimizing tax planning. These findings provide a strategic guide for corporate management to make more informed financial decisions to increase market attractiveness.

Author Profile:

  • Suci Ramadhani – Researcher, Universitas Jambi.
  • Enggar Diah Puspa Arum – Researcher, Universitas Jambi.
  • Wiralestari – Researcher, Universitas Jambi.
  • Ilham Wahyudi – Researcher, Universitas Jambi.

Research Source:

Ramadhani, S., Arum, E. D. P., Wiralestari, & Wahyudi, I. (2026). "The Effect of Thin Capitalization and Tax Planning on Firm Value in Transportation and Logistics Sector Companies Listed on the Indonesia Stock Exchange 2020-2024". International Journal of Integrated Science and Technology (IJIST), 4(5), 300-309. DOI: https://doi.org/10.59890/ijist.v4i5.10

Posting Komentar

0 Komentar