Optimization of Asset Liability Management on Textile and Garment Companies Using Goal Programming Model

Asset liability management is an important topic in a company’s financial planning strategy; therefore, quantitative techniques are needed to optimize its management. In the financial statements of a company, there are values of assets, liabilities, equity, income, and financial expenses that can assess the condition of the company. To analyze the optimization of the five elements of the financial statements, a Goal Programming (GP) Model was built. The Goal Programming Model was chosen because it is considered a mathematical model that can be used to obtain optimal solutions to problems that have multiple objectives. Besides, the deviation variables in the Goal Programming Model can produce complete information on the relative achievement of existing goals. The data used are financial statement data on textile and Garment Companies in West Java, Indonesia, namely PANASIA INDO, SUNSON TEXTILE, UNI-CHARM, EVER SHINE, INDO RAMA, INKOBAR, and MANITO. Based on the optimization results of the GP ALM model that was carried out on seven damages, it can be concluded that the asset goal has been achieved for SUNSON TEXTILE, UNI-CHARM, EVER SHINE, INDO RAMA, and INKOBAR companies. Liability has been achieved by the Companies PANASIA SINDO and MANITO. For revenue, no single company has yet achieved its financial goals, but the financial goals for equity and expenses have only been achieved by the SUNSON TEXTIL company. This study also provides recommendations for each company regarding the achievement of assets, liabilities, equity, revenue, and expense targets.