The Impact Analysis of Privatization and Shariah Screening on Financial Performance and Shares Return of State Owned Enterprises as the member of Jakarta Islamic Index

Privatization is one of the government’s programs in restructuring State-Owned Enterprises (SOEs). Other than restructuring SOE, privatization is also source of state budget funds (APBN). By privatizing SOE, government expected healthy corporation that will contribute larger tax payments, dividend payments, and additional paid-in capital. So it is expected that SOEs are always in a healthy condition, high competitive and produce goods quality products and services.In order to invite Islamic foreign investors. Now also available public listed SOEs that is according to Islamic sharia. SOE sharia shares are expected to be an example of implementing business in accordance to sharia, will benefit better financial performance and better share price. Eight SOEs who are members of the Jakarta Islamic Index, those are WSKT, WIKA, PTPP, SMGR, TLKM, PTBA, ANTM and PGAS, will be evaluated in this research regarding their financial performance and stock performance during the period 2000 to 2016.This research is included in descriptive research method that is ex post facto. The researcher evaluated the company's financial performance and stock performance during the 17-year period, from 2000 to 2016, financial performance measured is profitability performance (NPM, ROA and ROE), solvency (Total Asset Turnover) activity (Debt to Equity Ratio). The measurement of stock performance those are EPS. PER and PBV. Data analysis used in this research is descriptive analysis, trend analysis and Test t test.Based on the results of the study, the variable condition before the regression, NPM, ROA, ROE, DER, DR, DI, S / TA, EPS, PER and PBV variables have scattered residues normally. However, when tested for heteroscedasticity using scatter diagrams these variables such are NPM, ROA, ROE and PER free from heteroscedasticity. But variables such as DER, DR, DI, S/TA, EPS and PBV variables tend to contain heteroscedasticity. NPM variable data, tends to increase every year, as well as ROA, ROE. However, DER, DR, DI, S / TA, EPS, PER and PBV variables tend to be stable from year to year.Through a simultaneous equation method that reflects the existence of circular causation, it gives an idea of all variables being independent and dependent. Variable net profit margin on each SOE member JII, influenced significantly by the variable ROE, DER, DR, PER, PBV. The variable return on asset is influenced by ROE and DER variables significantly. The return on equity variable is significantly influenced by NPM, ROA, DER, PER and PBV variables. Debt To Equity Ratio (DER) variables are influenced significantly variables of NPM, ROA, ROE, DER, PER and PBV. Days Receivable (DR) variables influenced by NPM variables significantly.Days Inventory variables are not affected by any variable. Variable of Asset Turn Over (S / TA) is influenced by one variable only that is EPS. Variable Earning per Share (EPS) influenced significantly by variable DER and S / TA. Price Earning Ratio (PER) variables are significantly influenced by NPM, ROE, DER, and PBV. Price to Book Value (PBV) variables are significantly influenced by NPM, ROE, DER and PER variables.

performance are an analysis conducted to see how far a company has been carrying out business activities by using the rules of financial implementation properly and correctly.
Profitability Ratios and Rentability Ratios show the company's ability to generate profits at the level of sales, assets and share capital.Profitability ratio measures how big the company's ability to generate profits. According to Gitman (2003) "Profitability is the relationship between revenues and cost generated by using the firm's assetboth current and fixed-in productive activities". Profitability is the ability of a company to generate profits from the sale of its products (Riyanto, 1997).
Net profit margin is the ratio of the ratio between net incomes after tax with sales (Warsono, 2003). The amount of net profit margin calculation shows how much profit after taxes the company earns for a certain level of sales.
ROA (Return on Assets) is the ratio between net retained earnings after tax with total assets of the company as a whole. ROA also describes the extent to which the return of all assets owned by the company.
According Syahyunan (2004), ROA shows the ability of companies to generate profits from the assets used. The amount of the calculation of return on assets shows how much the ability of the company to generate profits available to ordinary shareholders with all assets owned.
According to Tandelilin (2003), ROA illustrates the extent to which the ability of assets owned by companies to generate profits, ROA ratio obtained by dividing earnings before interest and taxes by the amount of company assets. Munawir (2002), Return On Assets (ROA) reflects how much the company has gained on the financial resources invested in the company ". Gibson (2001), Return On assets measures the firm's ability to utilize it's assets to create profits by comparing profit with the assets that generate the profits. Gibson explained that the ratio of ROA is a ratio that measures the ability of companies to take advantage of assets owned by companies to generate revenue by comparing revenue with assets used by companies to generate revenue. This ratio is used to measure the ability of the capital invested in the overall assets to generate profit for all investors. The calculation results of this ratio shows the effectiveness of management in generating profits that have been invested by shareholders (either directly or with retained earnings). Bighram, Enrhardt (2005), ROE (Return on Equity) measures the power of firms to generate profits on book value investments of shareholders.
According to Gibson (2001), Return On Equity measures the return to the common stockholders of the residual owner ". Return on equity consisting of ordinary shares is a measure of return on equity to ordinary shareholders. ROE calculation results close to 1 indicate the more effective and efficient use of corporate equity to generate income, and vice versa if the ROE approaching 0 means the company is not able to manage capital efficiently available to generate income. Solvency ratio shows the company's ability to fulfill its long-term obligations.
Leverage relates to the use of fixed costs to generate revenues and profits of a company that involves the financing of assets with credit funds from creditors and preferred stockholders who have a fixed rate of return or reward so that it is a liability for the company, the higher the proportion of debt relative to the higher the equity the risks owned companies and affect the ability of companies to share profits with shareholders. Leverage sources can come from long-term debt such as bonds and short-term liabilities of preferred stock (Rahardjo, 2005). This ratio includes: Total Debt to Total Equity compares Total Liabilities with Total Capital to show the level of corporate financial leverage which is the lower the ratio the better.
Activity ratio or efficiency ratio include:

Average Receivable Age (Days Receivable)
Shows how long the conversion of accounts receivable into cash.This ratio divides accounts receivable with total credit sales multiplied by 365 days which is less days of receivables then the faster it means the better. According to Munawir (2004), the position of the receivables and the estimated time of collection can be assessed by calculating the turn over receivable ie by dividing the total net credit sales with average receivables. According to Warren (2005), accounts receivable turnover is used to measure how often a trade receivable turns into cash within a year.

Average Inventory Age (Days Inventory)
This ratio shows how long the conversion of inventory to finished goods for one year by dividing the average inventory amount to cost of goods sold multiplied by 365, the smaller the better. Turn over inventory is the ratio between the total cost of goods sold and the average value owned by the company. This turn over shows how many times the merchandise inventory is replaced within a year (sold and replaced), Munawir (2004).This ratio shows the efficient use of company-owned assets in generating sales by dividing sales by total assets, the greater the better.
Understanding Performance -According to Anwar King (2009), performance is defined as: The results of work in quality and quantity achieved by the management in carrying out its duties in accordance with the responsibilities given to him. Ratios that indicate important company information are disclosed on a per-share basis or view the development of the company's relative value to the book value of the firm.
Total Asset Turnover the greater the better.
Understanding Performance -According to Anwar Prabu (2009), performance is defined as: Results of work in quality and quantity achieved by management in performing their duties in accordance with the responsibilities given to him.

Earning Per Shares (EPS)
It is the portion of corporate profits allocated to each existing share that reflects the profitability of the company.
EPS is the most important component in calculating stock value. The most commonly used measuring tool is earning per Share (EPS). The figures show from EPS is often published about the performance of companies that sell their shares to the public (go public), because investors and prospective investors hold that the EPS contains information important to predict the amount of dividends per share in the future and the rate of stock return in the future, and EPS are also relevant to assess the effectiveness of management and dividend-sharing policies.
According to Tandelilin (2001), a company's EPS information shows the amount of net profit the company is ready to share for all shareholders of the company.
Price / Revenue Ratio (Price Earning Ratio) is a commonly used ratio to measure the market price (market price) of each common share with earnings per share. This measure involves an amount that is not directly controlled by the company's ordinary stock market price. The price / earnings ratio reflects investors' valuation of future earnings. (Simamora, 2000).
The ratio of the market price to the book value (Price to Book Value) is the market share price per share with the book value per share. This ratio compares the market value of investment in the firm with its cost.
A value smaller than 1 means that the company fails to create value for its shareholders. (Rahardjo, 2009).
According Rahardjo (2009) Price to Book Value can be calculated by: The capital market is a market in which there are various long-term securities (tradable) securities, in the form of debt (bonds) and private equity (shares) issued by the government and private companies (Husnan, 1998). Savas (1987) defines privatization as an act of reducing the role of the Government or enhancing the role of the private sector especially in activities involving ownership of assets. Pranoto (2011) cites Peacok (1930, defines privatization as a process of transferring industrial ownership from government to the private sector. In his dissertation Pranoto (2011) quotes Dunleavy (1980 interpret privatization as a permanent removal of the production activities of goods and services by state enterprises to the private sector. According to Abravanel (2006) research also quoted by Pranoto (2011), the benefits received by the Government from the privatization of SOEs are not just the proceeds from the sale of shares in the SOE (IPO Proceed) but also include the interest of local and foreign investors to enter the industry. SOEs efficiency will create cheaper products and services price and the quality of goods / services is better, the opportunity of SOEs to be regional / global champion because of a more competitive business environment, thereby finally increasing shareholder value. In accordance to Law No. 19 of 2003 on State-Owned Enterprises, the notion of privatization is the sales .
The scope of business activities of issuers that are contrary to the principles of Islamic sharia law are: a. Gambling and gambling-related businesses or games are prohibited.
b. The business of conventional financial institution containing ribawi element including banking and conventional insurance.
c. Enterprises that produce distribute and trade food and beverages that are classified as haram.
d. Enterprises that produce distribute and provide goods or services that are destructive to morals and harmful.
The main principles of TRS that can be explored (not limited to) are as follows:  is the set of equations in which the dependent variable in one or more equations is also an independent variable in some other equation, Sumodiningrat (2007), or can be defined as a model having causality or causal relations between the dependent variable and its independent variable, variables can be expressed as dependent and independent variables in other equations. In TSR view, the concept of simultaneous equations is a reflection of the concept of circular causation.
The simultaneous equations that are affected by theta are as follows: 11. Ɵ = Theta (learning) The system of simultaneous equations should perform identification tests in advance to detect each equation whether categorized as exactly identifiable, under identified, or over identified.
Once the simultaneous equation model is identified, the next is to do the model estimation.
According to Gujarati (2003), the method of assessment in the method of simultaneous equations is: The least indirect square method is used to estimate an equation that is part of a simultaneous simultaneous system. This method is called the least indirect square. Since structural parameters are estimated indirectly through the estimation of their reduced-form equations, the endogenous variables are only a function of exogenous variables and disturbance variables. Therefore, the ILS technique is only suitable for estimating the exactly identical structural equations that are part of the system of simultaneous equations without restriction on the covariant variant matrix of the disturbance variable.
Gujarati (2003), assumes the use of ILS In the 2SLS method required a considerable amount of obsevarsi data, it is necessary if the model has many exogenous variables. The 2SLS method here has advantages, the 2SLS method still yields its parameter estimates of single value even though the model is over indentified. However, if the model is exactly identified then the ILS and 2SLS procedures will provide the same estimates.
Sumodiningrat (2007), states that the 2SLS method is widely used in practice research is due: 1. The equation is over identified, ILS produces a parameter of double value, while 2SLS produces a single estimate 2. Although 2SLS is specifically designed to solve over-identified equations, this method can be applied to exactly identifiable equations. In the case of exactly identified results the calculation will be equal to the calculation by the ILS method.
3. Application of the ILS method would be more difficult in estimating the standard error of reduced-form coefficients. While in the application of 2SLS method, there is no such difficulty, this is because the structural keofisien directly assessed from the OLS regression onthe second step.

Instrumental Method Variable
The background of this method is basically to overcome the relationship between the variable U with free variables by entering a suitable exogenous variable as an instrument, in this method if the correlation between the independent variables and the interference variables can be removed then the procedure OLS produces a  (2006).Therefore in order that the model can be processed by using simultaneous then with lag in the equation, Choudury and Hasan (2006). To prove that the hypothesis is true or not, must test the truth of the hypothesis that is F statistic and t test statistic or significance resulting from the test.By first determining the level of significance between 90% to 95% or error rate between 5% to 10%, and pay attention to the number of observations (n).
Based on the above then compare the t-table and t-arithmetic obtained from the processing with SPSS. Or see from the probability that results from data processing with the program. In this research the proposed hypothesis has one tail test (one-way test) and two tail test (two-way test). Where the proposed hypothesis is as follows: Hypothesis: Ha: independent variables together have a significant effect on the dependent variable.
H0: independent variables together have no significant effect on the dependent variable. Furthermore, hypotheses are conducted in the same order of independent variables, where the dependent variable is the ROA, ROE, DER, DR, DI, S / TA, EPS, PER and PBV variables.

Results and Research Analysis
After processed using SPSS application, all variables are tested for normality and its heteroscedasticity. The t test is intended to test whether the independent variable is partially significant to the dependent variable. 3. In the table above the sig value of the variable X4 (DER) = 0.000 <0.05 so that H0 is rejected, which means that this independent variable is partially negatively and significant to the variable X1 (NPM).
The higher the X4 (DER), the lower the X1. Vice versa. This is still in line with the explanation on the correlation between variables, where high debt will reduce profits, and otherwise low debt will increase profits.
4. In the table above the sig value of the variable X5 (DR) = 0.039 <0.05 so that H0 is rejected, which means that this independent variable is partially negatively and significant to the variable X1 (NPM).
The higher the value of variable X5 (days receivable), the lower the value of variable X1, and vice versa. The explanation is that if the average day of receivables increases, the lower the profit.
5. In the table above the sig value. variable X6 (DI) = 0.704> 0.05 so that H0 is not rejected, which means that this independent variable partially has no significant effect on variable X1.
6. In the table above the sig value of the variable X7 (S / TA) = 0.351> 0.05 so that H0 is not rejected, which means that this independent variable is partially no significant effect on the variable X1.
7. In the table above the sig value of the variable X8 (EPS) = 0.250> 0.05 so that H0 is not rejected, which means that this independent variable is partially no significant effect on the variable X1.
8. In the table above the sig value of the variable X9 (PER) = 0.000 <0.05 so that H0 is rejected, which means that this independent variable partially positively and significantly to the variable X1, the higher the X10 (PER), the higher the value of X1 (NPM ), and vice versa.
9. In the table above the sig value of the variable X10 (PBV) = 0.000 <0.05 so that H0 is rejected, which means that this independent variable is partially negatively and significantly affect the variable X1. The higher the X10, the lower the X1. Vice versa.  Where each variable has embedded theta element (Ɵ), ie each variable is the result of the integration and evolution (IIE) interaction process. For example Net profit margin can be predicted from one variable return on asset, which has embbeded theta element. Theta ROA element is the return value is the result of the financial statements recorded by the employee of the financial department, where the records are performed after the proof of the sale fund or the bill has been entered in the form of transfer reports, sales reports. Once inputted, then the record will be checked by the supervisor. Reports will be periodic reports to management. If there is any improper adjustment will be made to be more accurate. It is a shuratic element, leading to a refinement of the return report in the end. Similarly, the results of the report can be a consideration for the Management whether action needs to be adjusted to report return obtained for example under the target or exceed the target. This process is continuously carried out such as circular causation, to bring about improvement in everything.
Similarly, the variables ROE, DER, DR, DI, S / TA, EPS, PER and PBV. All of them have been embedded with theta element.
Anailisis Trend Explanation of trend of net profit margin variable at PT Aneka Tambang (Persero), it can be explained that NPM component is not free of influence, it can be seen that commodity price factor and economic growth also cause NPM change. That is why NPM variables need to be analyzed by simultaneous equations. In addition the theta factor has also been embedded on the NPM variable, since the profitability ratio is the result of the division of the net profit component with income. Where the components of net profit and income is the result of employee performance over a certain period. The work done is of course implemented with a mutually agreed system, this is a shuratic process in TSR theory. In the process of income-generating activities, there has www.cribfb.com/journal/index.php/ijibfr also been a system of supervisory supervision and system. This is in order to lead to improvements to gain maslahat or benefits. So it goes on with other variables that have also been embedded with theta.

Conclusion
So from the analysis and discussion obtained the following conclusions:  The variable data used in this study generally has normal residual distribution, so that it meets the requirements for regression. TLKM, WSKT. While the PBV is down or worsen is shares PGAS, SMGR, WIKA, WSKT.

Theoretical and Managerial Implications
In general, research on the financial performance and stock performance of eight (8) Sharia SOEs JII members over a 17-year period can be explained that basically all financial ratio variables in theory are generally only independent, can also be a dependent variable and big or small always affect each other. Although not all variables but it can be concluded that the aspects of sharia and privatization can give a real effect on the company's performance both in financial and stock value. That for one dependent variable not all independent variables can give a significant influence. For example, although theoretically can be explained the close relationship between the average variables of receivable (DR) and operating income (NPM), that with the better the average day of receivable (decrease) then the business profit should increase. But ROA and ROE are equally related to profitability does not significantly affect the average variable day receivable or DR. This indicates that there are still other unexplained factors from this study.
While managerial implications, it can be conveyed that to support more and more explanations obtained in the study, the parties related to the development of stock exchanges and SOEs in order to encourage more state-owned enterprises in the privatization and can be classified into the appropriate sharia companies. So that investors are increasingly interested to instill the excess funds in the form of halal shares, and can be a reference material for further research. So this requires a simpler privatization process, where the privatization process is currently regulated by many government regulations and laws. On the one hand these laws and regulations are very good in order to avoid unfairness in the implementation of privatization. But on the other hand can hamper the acceleration of the privatization process.

Limitations of Research and Advice
Limitations of this research is located in research methodology where the method used in this dissertation data processing is by using approach of Tawhidi String Relation (TSR) where TSR method has the main principle of interaction integration and evolution and the existence of function by using model of circular causation that is model where the exogenous variable has the opportunity to become the endogenous variable in the model, therefore in this research the simultaneous equation model is used.Because this equation model is already eligible to be used as an analytical tool. In addition, research using the TSR methodology model has not been widely published, either in the form of a journal or dissertation that specifically discusses this research.
The data used in this study is secondary data. This is a drawback in this study, since secondary data are not entirely representative of the purpose of this study. So in the future, it is expected that the research can use primary data in the form of real survey results by interviewing directly to the management of each BUMN related to Sharia aspect and privatization.
From the conclusions presented above in general can be understood that the factor of financial performance is determined by the company's profit and debt structure. The significance of a variable simply illustrates the strength of the influence of the independent variable in each change of the dependent variable, but not adequately explained by only 10 variables and a period of 17 years. It is also related to the uniform timing of observations on issuers within JII, due to the discrepancy of IPO time and the limited number of financial ratio variables. Furthermore it is suggested to expand the number of variables studied with a longer period of time. (2-tailed)