Sugar is one of the basic needs of the community as a relatively cheap source of calories. The existence of sugar cannot be interpreted economically, but the political aspect also affects the dynamics of sugar, especially with regard to government policies in regulating all aspects of sugar production. As a basic necessity of the people, the government's inability to manage sugar prices will be able to trigger inflation. Therefore, this commodity can be said to be a strategic commodity that can influence and be influenced by economic, political, social and even cultural factors. Indonesia has designated sugar as a special commodity (special products) along with rice, corn and soybeans in the World Trade Organization (WTO) negotiations. This determination gives meaning to the role of sugar commodities which are very influential in people's lives. Sugar has become a strategic food need from several basic needs stipulated by the government in the decree of the Minister of Industry and Trade No. 20/M-DAG/PER/3/2017.

The increase in the population in Indonesia is one of the main factors influencing the amount of sugar consumption. The projected population of Indonesia over the next twenty-five years continues to increase, from 238.5 million in 2010, 273.5 million in 2020 and is estimated to reach 294.11 million in 2030. With the increase in population, the need for sugar will certainly continue to increase in the coming years. In addition to population growth factors, increasing economic growth also affects the level of sugar consumption by the community [1]. Although the Indonesian economy in 2019 experienced a slowdown, Indonesia's Gross Domestic Product (GDP) per capita increased to Rp.59.10 million or equivalent to US$ 4,174.9. This figure increased by 5.5 percent compared to 2018 (Rp.56.00 million,) and 2017 (Rp.51.89 million-).

According to Hermawan [2], people's need for sugar will continue to increase along with population growth, increasing population income and increasing industries that require raw materials in the form of sugar. The increasing demand for sugar is not offset by an increase in production capacity that has also increased, causing a production deficit. The government has been importing sugar from other countries to meet people's needs for sugar. The government's way of importing sugar from other countries has further reduced the country's foreign exchange and increased the state budget.

PT Perkebunan Nusantara X is an integrated sugarcane-based agro-industry from upstream to downstream that works on non-sugar sugarcane derivative businesses as well as businesses that can strengthen added value for the company's business chain. PTPN X's main product is white crystal sugar with by-products, in the form of drops. PTPN X's business is supported by 9 units of sugar factories with a total capacity of 39,050 TCD and 3 units of tobacco plantations. In addition, PTPN X is in charge of 3 subsidiaries, namely PT. Dasaplast Nusantara which is engaged in plastic sacks, PT. Agro Nusantara Energy in the field of bioethanol, as well as PT. Mitratani Dua Seven provides frozen food, such as edamame and okra. PT Perkebunan Nusantara X immediately took steps to control costs and increase productivity so as to reduce production costs per unit to maintain strong cash flow. This action forms a strong foundation for PTPN X in facing future challenges and to achieve optimal profits from any future price improvements.

The analysis of financial statements has the aim of knowing how far the business development between companies is from year to year and the effectiveness of company management. By knowing the level of financial changes, both capital, profit and Remaining Business Results (SHU) shared, so as to find out the condition or prospects of the company in the future. Analysis of financial statements used to assess management achievements in managing the company's business. Financial statements as a useful source of information, if the financial statements are in several comparative periods. By comparing these financial statements, it will help interested parties to analyze the development of the company. In addition, it can also be known whether the coefficient of the management team in managing the company. In other words, a financial statement is a report that shows the company's financial condition at the moment or in a certain period [3].

According to Fahmi [4], the company's financial performance has a close relationship. There are many financial ratios and each of them has its own uses. If the ratio does not represent the purpose of the analysis, he is going to do then the ratio will not be used. Because the concept of finance is known as flexibility, meaning that the formula used must be adjusted to the case under study. The financial statements will be more important and useful for interested parties, if the data can be compared between two or more periods for analysis and will be able to provide an assessment of the actual state of the company, whether it has experienced an increase or decrease in financial performance. This study aims to analyze internal and external factors that become strengths, weaknesses, threats and opportunities for the financial performance control system and alternative strategies for developing a financial performance control system at PT. Nusantara Plantation X.

The research location was selected purposively with a method of determining the location of the study which was determined deliberately based on the consideration of PT Perkebunan Nusantara X (PTPN X) is a state-owned company engaged in the agro-industry managing sugarcane crop commodities into white crystal sugar products. The total sample in capturing stakeholder opinions to determine strategies for the financial performance control system through interviews and filling out preliminary questionnaires with a purposive sampling approach. The sample used in this study was 10 key informants as Table 1.

Table 1: Key Informan

Source: primary data, 2023

Based on the data in Table 1 that has been reduced and presented, researchers make conclusions that are supported by strong evidence at the data collection stage. Conclusions are the answers to the formulation of problems and questions that have been expressed by the researcher from the very beginning. The method of formulating or formulating a sustainability strategy for the development of a financial performance control system at PT. Nusantara X plantation is carried out through the following stages:

• Internal Factor Evaluation Matrix (IFE), namely the evaluation of Internal Factors (IFE) is used to determine the internal factors of the institution related to strengths (strenghts) and weaknesses (weaknesses) that are considered important

• External Factor Evaluation Matrix (EFE), namely the evaluation of External Factors (EFE) is carried out to evaluate external factors of the institution such as opportunities and threats. External factors concern PPL, government support and competing institutions that provide capital loan assistance

• IE Matrix Analysis (Internal–External) i.e. the IE matrix is arranged based on the total value of IFE and EFE scores. Where on the horizontal axis is the total IFE score and on the vertical axis is the total EFE score. The point of intersection between the two axes will indicate the strategy that the organization considers appropriate. SWOT analysis is a tool to maximize the role of positive factors, minimize weaknesses in the organizational body and reduce the impact of emerging threats. According to David the steps in compiling a SWOT matrix are as follows:

• List of external opportunities

• List of external threats

• List of internal forces

• List of internal weaknesses

• Match internal strengths with external opportunities and record the results of the SO Strategy

• Match internal strengths with external opportunities and record WO Strategy results

• Match internal forces with external threats and record ST Strategy results

• Match internal weaknesses with external threats and record WT results

Based on these conditions, a method is needed that can accommodate the relationship between criteria, namely the QSPM (Quantitative Strategic Planning Matrix) method. QSPM results are in the form of scores. The highest score indicates that the alternative strategy is important as a top priority to implement. The value is obtained from the multiplication of weights and attractiveness scores (attractiveness scores, or AS) which range from 1–4 (Score 1 = unattractive, score 2 = somewhat interesting, score 3 = quite interesting and score 4 = very attractive). Respondents who fill out the U.S. score are people who understand and understand the strategies that can be executed, while the material is taken from the SWOT matrix. Steps for the development of a QSPM:

• List opportunities, threats, strengths and weaknesses in the left-hand column of the QSPM. This information is taken from the EFE matrix and IFE matrix

• Weighting each external and internal key success factors. This weight is the same as that in the EFE Matrix and IFE Matrix

• Identify alternative strategies whose implementation the company should consider and these strategies are noted at the top of the QSPM line

• Establish an Attractiveness Score (US), which is a value that indicates the relative attractiveness of each selected strategy. The Attractiveness Score is determined by examining each external and internal key success factors. The Attractiveness Score must be present in each strategy to show the relative attractiveness of one strategy to another. The limitations of the Attractiveness Score value are 1 = unattractive, 2 = somewhat attractive, 3 = logically attractive, 4 = very attractive

• Calculating the Total Attractiveness Score. Total Attractiveness Score of multiplication of Attractiveness Score (stage 3) by Weight (Stage 4) on each row. The Total Attractiveness Score shows the relative attractiveness of each alterative strategy

• Calculates the sum of the Total Attractiveness Score and sums all the Total Attractiveness Scores in each QSPM column. Of the several TAS values obtained, it is the highest TAS value of alternative strategies that indicate that alternative strategies are a priority [5]

Internal and External Factors That Become Strengths, Weaknesses, Threats and Opportunities for The Financial Performance Control System of PT. Nusantara Plantation X

Several internal factors that influence the Company's Financial Performance Control System Strategy Case Study of PT. Nusantara X plantation includes strengths and weaknesses. Strength factors include: 

• Our company has sufficient production capacity to meet the national sugar needs

• Our company always provides products according to the wishes and needs of customers compared to competitors

• Our company always offers high quality products compared to competitors

• The Company has the Technology and Resources needed to support production

Meanwhile, the weaknesses include: 

• Our Company's Production Costs tend to increase from the previous year

• Our company has not been able to significantly reduce losses due to the production process 

• Our Company Management still has not implemented an information system in supporting the production process optimally

• Our company has not implemented Total Quality Management optimally

From the interview results, several external factors were obtained that are considered to affect the Company's Financial Performance Control System, Case Study of PT. Nusantara X Plantation which consists of Opportunities (opportunity) and Threats (threat), the opportunities that exist include: 

• The government declares self-sufficiency over consumable sugar products that will have a positive impact on the company

• Our company always innovates products in line with customer needs

• The market demand for sugar consumption is still large, so that production will be absorbed by the domestic market

• There is the potential to develop derivative products with high economic value

Table 2: Matrix SWOT

Meanwhile, the threats are: 

• The existence of competing companies that are more flexible in implementing policies

• The existence of the government's highest price for sugar consumption so that the company cannot raise the selling price higher

• Our company has not been able to guarantee partnerships with farmers in the form of long-term cooperation

• Our company has not been able to guarantee the optimal and high-quality supply of raw materials

Financial Performance Control System Development Strategy at PT. Nusantara Plantation X

Financial Performance Control System Development Strategy at PT. Perkebunan Nusantara X to achieve the right goals, the employees of PT. Perkebunan Nusantara X need to identify internal factors (strengths and weaknesses) and external factors (opportunities and threats) that affect the Financial Performance Control System Development Strategy at PT Perkebunan Nusantara X. After knowing the internal and external factors in the Financial Performance Control System Development Strategy at PT. Perkebunan Nusantara X, the next stage of data collection, the models used are the Internal Strategy Factor Matrix (IFAS) and the External Factor Matrix (EFAS). Internal Factors (IFAS) there are 4 strength indicators and 4 weakness indicators, External Factors (EFAS) there are 4 opportunity indicators and 4 threat indicators. Furthermore, a merger is carried out between internal strategic factors and external strategic factors such as Table 3.

Table 3: Development of PT. Nusantara Plantation X

After calculating the weight of each internal factor and external factors, it is then analyzed using a position matrix to see the position of the sustainability strategy of the Financial Performance Control System Development Strategy at PT. Perkebunan Nusantara X. Based on table 3, an X value of -0.25 (X<0) and a Y value of -0.3 (Y<0) were obtained. The coordinate positions of IFS and EFS can be seen in figure 5.4. Strategy matrix for the Development of Financial Performance Control System at PT. The Nusantara X plantation in figure 5.4 shows the value of X<0 which is -0.25 and the value of Y<0 is -0.3. This means the position of the Financial Performance Control System Development Strategy at PT. Nusantara X plantation is in quadrant IV (second) namely W-T. 

From the results of the internal - external matrix obtained from the total weighting score value in the Financial Performance Control System Development Strategy at PT. Nusantara X plantation obtained an internal factor of -0.25 which means that this value is the difference between strength and weakness, where weakness is greater than strength. And for external factors, it is -0.3, which means that this value is the difference between opportunity and threat, where the threat value is greater than the opportunity. The strategy that must be applied in this condition is to control the losses that may be suffered by fixing resources, namely the Devensif (damage control) strategy. The position of its coordinate points can be seen in the Figure 1:

Table 4: The results of the QSPM analysis in the formulation of a strategy for developing a financial performance control system at PT. Nusantara Plantation X

Source: primary data, 2023

Strategy W–T as for the strategy that can be done for the Strategy of Developing a Financial Performance Control System at PT. Nusantara X plantation by looking at its weaknesses and threats is as follows:

• Optimizing production costs so that in pricing sugar consumption is in accordance with the target profit (W1, T2)

• Reduce losses due to the production process by increasing the supply of optimal and quality raw materials (W2, T4)

• Improving the information system in supporting partnerships with farmers in the long term (W3, T3)

• Optimizing the implementation of more flexible policies in the implementation of Total Quality Management (TQM) (W4, T1)

With so many strategic alternatives obtained, several strategies must be chosen that will be made a priority. The decision-making stage is the next stage of strategy formulation using QSPM (Quantitative Strategic Planning Matrix) analysis. This analysis is aimed at determining the priorities of the Financial Performance Control System Development strategy at PT. Nusantara Plantation X.

Based on the results of the QSPM analysis, a strategy is formulated that can be used as a strategic priority in determining the Financial Performance Control System Development Strategy at PT. Perkebunan Nusantara X. However, a strategic need to be implemented in the form of an operational program. Some of the programs that the author can formulate based on the results of the evaluation of the implementation of the program that has been implemented and the results of the evaluation using the SWOT and QSPM analysis are as follows:

• Optimizing production costs so that in pricing sugar consumption is in accordance with the profit target. Based on the analysis of the W – T strategy of business development by optimizing production costs so that in determining the price of consumption sugar in accordance with the profit target where to meet national sugar needs, PT Perkebunan Nusantara X (PTPN X) continues to strive to boost its production. In addition, by continuing to spur production cost efficiency so that prices in the market are more competitive. Production cost efficiency must continue to be suppressed because competition is getting tougher. In addition, to meet the standards of good, sweet, clean and fresh sugarcane raw materials, farmers' sugarcane planting patterns must be well regulated. The planting pattern of the early, middle and late periods must be made stricter, the goal is that the results meet the requirements for raw materials, namely clean and fresh sweetness. Another thing that is quite important is that sugar factories must be able to reduce costs so that they are even more efficient. That way, not only PG will make a profit, but also farmers. So that all PG in Indonesia can reduce the cost of goods produced again to make it more competitive. In pricing to achieve profit targets, it can be seen in the company's performance is an overview of the financial condition of a company that is analyzed with financial analysis tools, so that it can be known about the good and bad financial condition of a company that reflects work performance in a certain period. This is very important so that the company's resources are used optimally in the face of environmental changes. Performance measurement is used by the company to make improvements to its operational activities in order to maintain the company's survival (sustainable) and be able to compete with its competitors. Financial performance analysis is the process of critically reviewing data, calculating, measuring, interpreting and providing solutions to the company's finances at a certain period. PTPN X's financial performance measurement is then carried out as an important indicator that shows whether the strategic steps taken by the company are appropriate. The financial performance indicator is through testing profitability ratios

• Improve information systems to support partnerships with farmers in the long term. Based on the analysis of the W – T strategy of business development by improving the information system in supporting partnerships with farmers in the long term where the partnership program is a cooperative step carried out by two or more people to get mutual benefits. The partnership program provided by PTPN X aims to improve the economic life of the community and the community can live independently and creatively. This partnership program is a form of corporate contribution in the form of an information system for corporate social responsibility programs or CSR. The potential of this partnership program is of course to improve human resources around the company by providing capital loans and equipped with various trainings on entrepreneurship. Dalam kemitraan yang dilakukan di sini ialah, melakukan kemitraan melalui peleburan dan pengembangan (Conjungation partnership). In empowerment through the partnership program, of course, there is a development process in partnership, namely: starting to build relationships with candidates, understanding the business conditions of the partnering parties, developing strategies and assessing business details, developing programs, starting implementation and monitoring and evaluating development. In the information system process of the PTPN X partnership program, of course, the company first socializes about the existing programs in the company so that the public can know in detail about the purpose and objectives of the program and the community can play an active role in participating in the programs in the company

• Reduce losses due to the production process by increasing the supply of optimal and quality raw materials. Based on the analysis of the W – T strategy, the business development strategy by reducing losses due to the production process by increasing the supply of optimal and quality raw materials which in this case must pay attention to the supply of sugarcane raw materials in the factory area in an effort not to lack sugarcane raw materials or stop grinding. This can be overcome by estimating tomorrow's capacity, the remaining sugarcane in the morning and the time when the sugarcane can go directly to the mill yard. By calculating the amount of sugarcane raw material inventory per hectare, it can be calculated how many hectares of sugarcane must be cut down. However, if the mill is unable to meet the expected milling capacity, for example, the mill is damaged so that there is leftover milled sugarcane yesterday, eating the transport part or plant part can reduce the amount of logging. Control of the supply of sugarcane raw materials is carried out by the plant section on the basis of information from the manufacturing department regarding the remaining sugarcane and factory capacity. The amount of sugar production in the Sugar Factory per milling season depends on the production target set by the board of directors. To be able to meet this target, the availability of adequate raw materials is needed. The amount of sugarcane raw materials not only meets the quantity of production but also pays attention to its quality. Sugarcane that is ground is expected to have good quality, namely sweet, clean and fresh and has a high yield, thus high quality granulated sugar can also be produced. The production process that pays attention to quality will produce products that are free from defects. This can avoid waste and efficiency so that production costs per unit can be reduced and product prices can be more competitive. With the application of the Six Sigma method, it is hoped that it can bring the company to the lowest level of material losses and can even reduce it until the production process runs towards perfection (zero defect). Thus, it is expected that it will increase profits and will result in a decrease in costs incurred. In addition, the company can maintain its survival and can even improve its market position in the face of hypercompetitive competition

• Optimizing the implementation of more flexible policies in the implementation of Total Quality Management (TQM). Based on the analysis of the W – T strategy of business development by optimizing the implementation of policies that are more flexible in the application of Total Quality Management (TQM) where the best way to improve the capabilities of the components of human resources, processes and the environment on an ongoing basis is to implement Total Quality Management (TQM). TQM provides benefits, namely increasing the competitiveness of the company. The TQM concept is the concept of continuous improvement carried out by monitoring the quality of products and services at each level of operation. Quality monitoring carried out by the company can reduce the level of damage from the resulting product to small, or in other words, product damage at the stages of the production process tends to be non-existent so that the company does not need to spend additional costs to repair damaged products, which makes the burden of production costs small, the company's profit will be high and consumers get good quality products. PT Perkebunan Nusantara X is a company engaged in agro-industry and agribusiness business. PTPN X in the implementation of policy management aims to increase profits for shareholders through company quality and employee welfare through synergistic program implementation from all related parties, especially the support and participation of all employees through hard work, discipline, sincerity and perseverance, harmonious and integrated cooperation, full of dedication and loyalty, as well as a consistent and sustainable proactive attitude. The Company carries out business transformation in an effort to improve the quality of products and services to the company's external and internal environment.

Figure 1: Position Matrix of Financial Performance Control System Development Strategy at PT. Nusantara Plantation X

Source: Data dialised, 2023

Factors of the financial performance control system in PT. Nusantara X Plantation where the strength factors include: 

• Our company has sufficient production capacity to meet the national sugar needs

• Our company always provides products according to the wishes and needs of customers compared to competitors

• Our company always offers high quality products compared to competitors

• The Company has the Technology and Resources needed to support production

Meanwhile, the weaknesses include: 

• Our Company's Production Costs tend to increase from the previous year

• Our company has not been able to significantly reduce losses due to the production process

• Our Company Management still has not implmented an information system in supporting the production process optimally

• Our company has not implemented Total Quality Management optimally

Opportunities include: 

• The government declares self-sufficiency over consumable sugar products

• Our company always innovates products in line with customer needs

• The market demand for sugar consumption is still large, so that production will be absorbed by the domestic market

• There is the potential to develop derivative products with high economic value

Meanwhile, the threats are:

• The existence of competing companies that are more flexible in implementing policies

• The existence of the government's highest price for sugar consumption so that the company cannot raise the selling price higher

• Our company has not been able to guarantee partnerships with farmers in the form of long-term cooperation

• Our company has not been able to guarantee the optimal and high-quality supply of raw materials

Strategy for developing a financial performance control system at PT. Perkebunan Nusantara X Some of the programs that the author can formulate based on the results of the evaluation of the implementation of the program that has been implemented and the results of the evaluation using SWOT and QSPM analysis are Optimizing production costs so that in determining the price of sugar consumption in accordance with the profit target, Improving the information system in supporting partnerships with farmers in the long term, Reducing losses due to the production process by increasing the supply of optimal raw materials and quality and Optimizing the implementation of more flexible policies in the implementation of Total Quality Management (TQM).

1. Persaulian, B. et al. “Analisis Konsumsi Masyarakat di Indonesia.” Jurnal Kajian Ekonomi, vol. 1, no. 2, 2013, Padang.

2. Hermawan, Agus. Komunikasi Pemasaran. Jakarta: Penerbit Erlangga, 2012.

3. Kasmir. Analisis Laporan Keuangan. Jakarta: Raja Grafindo Persada, 2016.

4. Fahmi, Irham. Analisi Kinerja Keuangan. 3rd ed., Alfabeta, Bandung, 2014.

5. David, F.R. et al. “The Quantitative Strategic Planning Matrix: A New Marketing Tool.” Journal of Strategic Marketing, 2016. ISSN: 0965-254X.