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INDONESIA’S MEMBERSHIP OF ASIA-PACIFIC SPACE COOPERATIONORGANIZATION (APSCO):

ORGANIZATIONAL PERFORMANCE

Shinta Rahma Diana and Maya Syafriana Effendishinta_alfin@yahoo.com, shinta.rahma@lapan.go.id, shinta.rahmadiana@gmail.com

Center For Aerospace Policy Studies, National Institute of Aeronautics and Space(PusKKPA, LAPAN)

ABSTRAK

Penelitian ini bertujuan untuk menentukan keputusan strategis dalam hal diratifikasi atau tidaknya konvensiAPSCO. Pendekatan yang digunakan adalah dengan melihat kinerja keuangan Organisasi yang diukur denganmenggunakan alat analisis trend, common size dan gabungan kedua alat analisis tersebut. Metodologi Penelitianmenggunakan (1) analisis kuantitatif dengan melakukan perhitungan menggunakan alat ukur berupa analisa trend,common size dan keduanya untuk mengukur kinerja keuangan APSCO; (2) analisa kualitatif dengan menganalisakinerja APSCO berdasarkan hasil perhitungan. Jenis data menggunakan data sekunder berupa laporan keuanganAPSCO tahun 2012-2014. Hasil analisis menunjukkan bahwa APSCO memiliki kinerja keuangan yang baik.Ditunjukkan dari tingginya realisasi basic activity, hal ini menunjukkan bahwa negara anggota memanfaatkanbudged yang ada dengan maksimal dan APSCO concern terhadap peningkatan program-program melaluipelaksanaan kegiatan-kegiatannya. APSCO memiliki komitmen yang tinggi terhadap capaian output organisasi,akan tetapi APSCO harus tetap membuat strategi perencanaan manajemen terkait dengan struktur expenditures,mengurangi administration expenditures dan staff salary demi mempertahankan dan memperbaiki kinerjakeuangannya. Hasil menunjukkan sebaiknya Indonesia meratifikasi Konvensi APSCO dan harus dapatmemanfaatkan dengan maksimal program-program yang ditawarkan APSCO.

Kata-kata kunci: APSCO, Analisa Tren, Analisa Common Size, Kinerja Keuangan.

ABSTRACT

This research aims to formulate a policy about Indonesia’s membership status in APSCO. The approachused in this research is to examine organization’s financial performance measured by trend analysis tool,common size, and combination of both analysis tools. The research methods would be (1) Quantitativeanalysis by doing calculation using measuring instrument i.e. trend analysis, common size, and both, tomeasure APSCO’s financial performance; (2) Qualitative Analysis (descriptive) by analyzing APSCO’sperformance from quantitative calculation result. Types of data is secondary data which is APSCO’sfinancial report of 2012-2014. The result of analysis shows that APSCO has an excellent financialperformance. It can be seen from its high realization of basic activity. It means that member states utilizethe budged maximally and APSCO’s concern towards programs improvement through theimplementation of its activities. However, APSCO should make a management planning strategy relatedto expenditures structure to maintain and repair its financial performance. Result shows that it would bebetter for Indonesia to sign as a full-mempership of APSCO and should utilize maximally the programsor activities offered by APSCO.

Keywords: APSCO, Trend Analysis, Common Size Analysis, Financial Performance

I. INTRODUCTIONA. Background Of The Study

Asia-Pacific Space CooperationOrganization (APSCO) is an inter-

governmental organization beyond UnitedNation (UN) system for Asia-Pacific region,initiated by People Republic of China.APSCO aims at peacefully explore andexploit space science and technology and

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their applications for promotion ofsustainable socio-economic development bystrengthening multilateral cooperation forhuman benefit of the Asia-Pacific regions.APSCO was officially inaugurated in 2008.

On 28th October 2005, APSCO’sconvention was signed by 8 nationsincluding Bangladesh, China, Indonesia,Iran, Mongolia, Pakistan, Peru, andThailand. Turkey becomes the 9th nation tosign APSCO convention on 1st June 2006(Siddiqi, 2010). Until today, those nations ofAPSCO founder have become full-memberof APSCO, except Indonesia. APSCOcommittee intensively approach Indonesia’sgovernment to be APSCO’s full-member.

At this moment, bilateral strategicrelationship between Republic of Indonesiaand develops quite well especially in thearea of space cooperation. The fact thatChina is the main sponsor for APSCO is themain factor for Indonesia to become thefull-member of APSCO. Therefore,Indonesian Ministry of Foreign Affairssuggests to review Indonesian positionwhich previously as an observer andbecoming APSCO’s full-member. Anothercriterion stated in The LAW of the Republicof Indonesia No. 21 of 2013 on SpaceActivities in Chapter IX Article 73 Section 1which stated that the Government ofIndonesia may conduct internationalcooperation in the field of space activitieswith Government of other states, entities orinternational organizations in accordancewith the prevailing laws and regulation.Further more in Article 74 Section 1 of thislaw stated that the Government ofIndonesia must actively participate as amember of space international organizationto enhance international cooperation. Inaddition to these, regulation governingabout international cooperation is set inPresidential Decree No.64 of 1999 aboutIndonesian Membership and Government’scontribution on International Organizations.

The decision about becoming or notbecoming a full-member of APSCO, ofcourse, will depend on many factors. One ofmany crucial factors to consider is bylooking at APSCO’s financial performanceas a non-profit entity. According toFinancial Accounting Standard’s statementNo.45 (PSAK No.45) of non-profitorganization, it is visible that APSCOcharacteristic suit the PSAK No.45. Thesecharacteristics are as follows:1. APSCO’s financial sources come from

the member countries that do not expectfor re-payment at the amount of givencontributions;

2. APSCO provides advantages such asactivities or programmes withoutaiming to foster profit, and no suchprofit is distributed to the memberstates;

3. Unlike general business entity, there isno ownership in APSCO. It means thatownership in non-profit entity cannot besold, transferred, or redeemed. In otherwords, the ownership does not reflectthe proportion of non-profit entity’sresource sharing upon liquidation ordissolution of business entities.

Overall performance of non-profitorganization can be evaluated usingfinancial performance process, politic,merit, and other performance decisions(Duan, 2010). Financial performance is ageneral performance from variousorganizations. A bad financial quality oforganizations or non-profit entities willaffect benefits quality (activities orprograms) offered (Lulu Meutia, 2012).There is a strong relationship betweenfinancial condition of non-profitorganizations and its ability inaccomplishing it missions (Lee, 2010).

Generally, an organization has aspecific purpose to be achieved through itsactivities for fulfilling the need of themembers. Appraisal of achievement orperformance of an organization can be used

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as a basis for decision-making, both byinternal and external parties. Internal partymeans the organization’s member whileexternal party is outsider. Internal partyneeds performance analysis to seeachievement of activities or programs whileexternal party needs it for decision-makingof joining the organization or not.

With regard to APSCO, Republic ofIndonesia, represented by National Instituteof Aeronautics and Space (LAPAN) as thefocal point in space activities, is consideredas an external party. In this case, LAPANneeds to establish strategic policy in orderto recommend the ratification of APSCOconvention. Such strategic policy will bebased on APSCO’s financial performance.

B. Research QuestionBe based the background of study, researchproblems in this research is, what kind ofstrategic decision should be established byIndonesia regarding its membership statusof APSCO by using APSCO financialperformance measurement approachthrough trend analysis, common size, andcombination of both analysis?

C. Research ObjectivesThis research aims at providing a tool forIndonesia (LAPAN) as part of its strategicpolicy to formulate a policy of Indonesia’smembership in APSCO by using financialperformance of APSCO measurementapproach through trend analysis, commonsize, and combination of both analysis.

D. Research ContributionsThis research giving contributions forscholars in appliying conceptual frameworkin PSAK number 45 (nonprofit entity’sfinancial report) and technical analysistheory application of financial report informulating a policy. For Goverment, inhelping to formulate the taken policywhether or not ratifying the convention inan international organization.

II. LITERATURE REVIEWA. Asia-Pacific Space Cooperation

OrganizationAPSCO is an inter-governmental

organization, which was officiallyinaugurated in 2008 with objectives topeacefully explore and exploit space scienceand technology and their applications forpromotion of sustainable socio-economicdevelopment by strengthening multilateralcooperation for human benefit of the Asia-pacific Region (APSCO Document). Themain purpose of APSCO is to enabledevelopment of Member States’ Spacecapabilities by harnessing joint resources tobenefit the people of this region inparticular and in the world in general.APSCO’s objectives are as follows:1. Promoting and strengthening the

development of collaborative spaceprograms among it Member States byestablishing the basis of cooperation inpeaceful applications of space scienceand technology;

2. Taking effective actions to assist theMember States in such areas as spacetechnological research anddevelopment, applications and trainingby elaborating and implementing spacedevelopment policies;

3. Promoting cooperation, jointdevelopment, and to shareachievements among the Member Statesin space technology and its applicationsas well as in space science research bytapping the cooperative potential of theregion;

4. Enhancing cooperation among relevantenterprises and institutions of theMember States and promoting theindustrialization of space technologyand its applications;

5. Contribute to the peaceful uses of outerspace in the international cooperativeactivities in space technology and itsapplications.

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APSCO’s establishment was basedon convention aims to improve spacecoordination between member states,including the coordination’s improvementbetween companies and institutions relatedto aerospace from member states andpromote space technology industrializationand its applications (Susilawati, 2015).Another purposive goals are stated inAPSCO’s convention Article 4 of 2005, asfollows:1. Improve and strengthen space

coordination program across memberstates by establishing basis forcooperation in space science andtechnology application for peacefulpurposes;

2. Do effective action to help memberstates in areas such as research anddevelopment of space technology,application and training by formulatingand implementing space developmentalpolicy;

3. Improve cooperation, jointdevelopment, and profit sharing across

member states in space technology andits application. Also, space scienceresearch by integrating working-cooperation potential in the region;

4. Improve cooperation betweencompanies and institutions related tomember states and increase spacetechnology industrialization and itsapplication;

5. Play role in using space peacefully inany international cooperative activitiesin the field of space technology and itsapplications.

APSCO consists of council led bychairman and a committee led by SecretaryGeneral. Council is the highest decisionmaker, which members consist of ministersor deputy ministerial level from nationalspace agency’s member’s nation. Eachmember states should propose oneconchellor or ministry representative to bedelegation on the council. Below isAPSCO’s organization structure (Figure 1):

Figure 3-1: APSCO’s Organization Structure

Figure 1. APSCO’s Organizational StructureSource: APSCO Presentation in APRSAF-22, Bali, 2015

B. Organization Performance

APSCO COUNCIL

APSCO SecretariatSecretary-General

Department ofExternal

Relations &Legal Affairs

Department ofStrategic Plan &

ProgramManagement

Departmet ofEducation/Training &Database

Management

Department ofAdministration &

Finance

Deputy Secretary-General

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According to Corina Gavrea, LiviuIlieş, and Roxana Stegerean (2011),organizations have an important role in ourdaily lives. Successful organizationsrepresent a key element for developingnations. Many economists considerorganizations and institutions similar to anengine in determining the economic, socialand political progress. Continuousperformance is the focus of anyorganization because only throughperformance, organizations are able to growand make progress. Thus, organizationalperformance is one of the most importantvariables in the management research andperhaps the most important indicator of theorganizational performance.

Appraisal of organizationperformance as a result of managementdecision process, consider as a complexissue, because it concerns about capitalefficiency and effective use fromorganizational events regarding the valueand security from various demands arisingagainst the organization. According toMeutia (2012), organization performanceshould be a result that can be measured bydescribing the condition of an organization.“Report from PSAK No.45 presents thereport to the organization board, donors,assisted group, and public regardingorganization performance referring to theamount of funds received and type ofactivities performed.” (Halim and Kusufi,2012: 420)

Lebans and Euske (2006: p. 71)provide a set of definitions to illustrate theconcept of organizational performance:1. Performance is a set of financial and

nonfinancial indicators which offerinformation on the degree ofachievement of objectives and results(Lebans & Euske 2006 after Kaplan &Norton, 1992);

2. Performance is dynamic, requiringjudgment and interpretation;

3. Performance may be illustrated by usinga causal model that describes howcurrent actions may affect future results;

4. Performance may be understooddifferently depending on the personinvolved in the assessment of theorganizational performance (e.g.performance can be understooddifferently from a person within theorganization compared to one fromoutside);

5. To define the concept of performance isnecessary to know its elementscharacteristic to each area ofresponsibility;

6. To report an organization's performancelevel, it is necessary to be able toquantify the results.

APSCO in accordance withcharacteristic and purpose of itsestablishment can be categorized as non-profit organizations. For non-profitorganizations, performance measurementcan be very beneficial for work program’sgrowth in the future. By doing performancemeasurement as one of organizationmanagement tools, not only it can increaseoperational efficiency and social credibility,but also will support economic growth byinteraction between profit-orientedgovernment and company (Duan, 2010)

As for non-profit organization’sstakeholder, performance measurement canbe used as evaluation of organization’sinternal and external accountability(Meutia, 2012). As stated by Duan (2010),that performance measurement of non-profit organization can be measured byfinancial performance. It has a significancedetermination of specific sizes which canmeasure the success of a company ingenerating income (Sucipto, 2013). So doesthe non-profit organization, as stated inPSAK No. 45 scope No.7, that performancemeasurement used in order to evaluatemerits (program) given by non-profit

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entities and its skill to continue givingservices (program), management manners(in this case APSCO) in takingresponsibilities and other aspects from theperformance.

Lee (2010), to understand whetheran organization is financially vulnerable ornot, zan organization should know itscurrent financial performance. Douglas(1987) and Weisbrod (1988) in Lee (2010)pointed out, nonprofit organizations playan important role in satisfying theminority’s demands for public goods andservices. During the economic crisis, theminority such as the elderly, the disabled,and the poor, will go throughunderprovided public services, as well aseconomic hardship, when financialvulnerability makes nonprofit organizationsdecide to reduce their service offerings.Based on Lee (2010), financial performanceof non-profit organizations can be measuredbased on financial analysis. Financialanalysis uses financial statements and othersources of information that show thefinancial condition of an organization. Bylooking at financial report of anorganization, organizational activities canbe described. Therefore, organization’sfinancial report is a result of an accountingprocess which can be used as acommunication tools and also asorganization performance measuring tools.

Benefits of financial report accordingto Farida Efriyanti, Retno Anggraini, YunusFiscal (2012) are, (1) to measureachievement accomplished by anorganization in certain period which reflectsactivities’ implementation level of success;(2) used to assess contribution of a portionin accomplishing overall corporateobjectives; (3) used as a basis of determiningcompany’s strategy for the future; (4) Giveclues in decision making and organizationalevents generally, and division ororganizational parts specifically; (5) as abasis of investment policy’s determination

to increase company’s efficiency andproductivity.

Financial performance is adescription of organization’s financialcondition which analyzed using financialanalysis tools, so the good and bad financialconditions of an organization can bedetermined to see theachievement/works/activities/ program oncertain period. It is important for having anoptimal use of resources. Way of knowingboth the poor of financial performance in acompany or organization can be known byanalyzing the relations from various postsin a financial report (Farida Efriyanti, RetnoAnggraini, Yunus Fiscal, 2012). Thefinancial analysis is conducted for severalpurposes, one of them us it can be used asearly screening in choosing investmentalternative.

Type of analysis which can beconducted are (1) Horizontal Analysis is afinancial data growth analysis and companyoperational data year by year to determinefinancial strength and weakness of relatedcompanies. This analysis consists ofComparative Statements, and IndexNumber Series; (2) Vertical Analysis is alimited financial report, only on oneaccounting period. This analysis consists ofCommon Size Financial Statement andRatio Analysis. Several financial reportanalysis technique are mentioned asfollows:1. Comparative Analysis

Comparative analysis is a financialreport analysis technique conducted bypresenting financial report horizontallyand compare between one another byshowing financial information or otherdata either rupiah or in unit

2. Trend AnalysisIt aims to determine situation’stendency or inclination of a company inthe future, both tendencies increase,decrease or remain.

3. Common Size

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Common size technique used a patternor number simplifying technique infinancial report. Financial reportanalysis using this technique needs abasic numbers as calculation baseconversion. The balance usually usetotal assets or liabilities as a basis by thenumber of 100%

4. Financial Ration AnalysisRatio analysis is an analysis method todetermine the relations of certain postsin a balance or income statementindividually or combination of bothreport.

III. METHODOLOGYA. Research Subject

Research subject of this study isAPSCO, cooperation organizations beyondUN system for Asia-Pacific initiated byRRC.

B. Research DesignQuantitative analysis is an analysis

conducted by calculating using provideddata from companies or organizations(Efriyanti, et.al. 2012). This research isconducted using calculation with trendanalysis as measuring instrument, commonsize, and both, to measure APSCO’sfinancial performance. Data is in form ofAPSCO’s annual report of 3 years period(2012-2014). Annual report of 2015 not yetavailable for use as an input in analyzingAPSCO’s financial performance, since it isonly a draft which do not pass the validitytest.

Qualitative analysis (descriptive) is amethod which aims to give descriptionabout research subject based on deriveddata by variable from group of subjectsstudied. This research conducted byanalyzing APSCO’s performance be basedon calculation result using trend analysistechnique, common size, and combinationof both. The analysis, until the stipulation ofstrategic moves from LAPAN is in a form of

decision, whether yes or not to join as a fullmember of APSCO.

C. Data Resources and TypesTypes of data used in this research is

secondary data be in form of literary study,which is derived from APSCO’s annualreport documents of 2012-2014, journals,and oter references. Another secondarydata, either directly written by relatedpolicy makers to this article and also directobservation of the issues regarding thiscase. Data derived from annual report of2012-2014 used in this research uses theincome statement and expenditures.

In this research, measurement offinancial performance is more focused onframework or expenditures’ structure.Likewise one of recommendation given byLee (2010), that “Non-profit organizationmay need to make strategic managementplan for its expenditure structure and needto create an effective management strategyin program expenses. All organizationsneed to invite board members who havesome financial institution background todiscuss the management strategy forimproving its financial performance. Theyshould do efficient management of programexpenses to decrease their operatingexpenses. Basically, the costs to deliverpublic services increase as the demand ofpublic services increases during economiccrisis era (Tuckman and Channg 1991 in Lee(2010).”

D. Data Analysis MethodInstruments used in analyzing are as

follows:1. Trend Analysis

Trend financial analysis report is ahorizontal analysis method. This analysisuses comparison of company’s financialratios over the years approach to see theextent of company’s financial performance.Whether it is improved or otherwisedecline? If the trend improved, it is inferred

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that company’s financial performance isrelatively good, and vice versa. Thisanalysis needs electoral base years for theentire post, usually given index numbers of100. Since the base year becomes a referenceto all comparison, best choice is a year withnormal business condition (Subramanyam,2010).

The year used as trend calculation inthis research is 2012 base year. So, in theperiod of 2012 for expenditures account onstaff salary, basic activity andadministration have a percentage of 100%.Meanwhile, percentage of 2013 and 2014 is aresult of all absolute expenditures numbersof 2013 and 2014 divided by 2012 base year.2. Common Size

Common size financial reportanalysis is known as vertical analysismethod, that is by analyzing financialreport for one period by comparing oneanother posts. Common size technique usespattern or simplified figures technique infinancial report. According to Subramanyan(2010), common size’ financial reportanalysis is a knowledge of group’sproportion or sub-group which formed aspecific post where posts inside the groupexpressed as a percentage of total relevant,so the total posts is 100%. Therefore in thisresearch, total expenditures is stated in100% and each absolute expendituresfigures divided by total expenditures. Thecalculation result aims to discovercontribution’s proportion of eachexpenditures towards total expenditures, sothe funding of organization can be known.3. Combination of common size and

trend analysisThis is a kind of combination

analysis of both vertical and horizontalmethod. Calculation result using commonsize analysis then being analyzed by seeingtrend calculation result. Subramanyan(2010) stated that time comparison overcompany or organizations common sizereport is beneficial to reveal post

proportional changes inside group costsand other categories. In this case, interestedparties in financial reports can see thedevelopment or increase or decreasetendency of each expenditures’contribution, which goals is to assessfinancial performance of the organization.

According to Dunn (2003),researchers used model in answering therising formulation is a model withprospective approach. “Prospective modelis a policy analysis that leads its study topolicy’s consequences ‘before’ it isimplemented. This model can be referred toas predictive model, since it frequentlyinvolves forecasting techniques to predictpossibilities arising from proposed policy”.It is because this study considers as a studywhich can be used before a policy isimplemented by considering policyanalysis’ form that leads its study topolicy’s consequences ‘before’ itsimplementation. Its predictive naturebecause of the upcoming used analysiswould be future predictions by usingfinancial techniques premised on historicaldata.

IV. RESULTS AND DISCUSSION

APSCO’s financial structure containsof Income and Expenditures. Incomeconstitutes the revenue for APSCO.APSCO’s income consists of contributionfrom member states, optional projectmanagement fee, and other income such asinterest and tax. Contribution of memberstates comes from paid contributions byAPSCO’s member states calculated basedon each GDP rates. While optional projectmanagement fee derived from optionalactivity, if a member state propose anactivity. Other income comes from interestand tax. APSCO’s income can be seen inFigure 2 below:

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Figure 2. APSCO’s Income

Source : Data ProcessedAPSCO’s provisions stated that if a

nation ratifies APSCO’s Convention, then itshould give annual fee to fund APSCO’sevents. Based on APSCO’s calculation for2015-2017, each APSCO’s membercontribution is shown in Table 1:

Table 1. Member States ‘Contribution And Its Estimation Of 2015-2017 If Indonesia Becomes The Member

Member States Average 3 YearsGDP

(2011-2013)

GDP

(%)

50%GDP

Average 3Years GDPPer-Capita(2011-2013)

GDPPer-

Capita(%)

50%GDPPer-

Capita

Total(%)

(5)+(8)

Kontr (%)

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)1. Banglades

h119.265.372.121 1,06 0,53 770,466 1,75 0,83 1,41 3,00

2. China 8.263.884.145.587 73,14

35,57 6.115.841 13,93 6,97 43,54 18,00

3. Iran 466.686.574.918 4,13 2,07 6.115.841 13,93 6,97 9,03 9,034. Mongolia 10.199.934.549 0,09 0,05 3.642.852 8,30 4,16 4,19 4,195. Pakistan 225.063.672.652 1,99 1,00 1.255.763 2,86 1,43 2,43 3,006. Peru 188.498.547.995 1,67 0,83 6.281.007 14,31 7,15 7,99 7,997. Thailand 366.296.737.409 3,24 1,62 5.483.619 12,49 6,35 7,87 7,878. Turkey 794.608.139.869 7,03 3,52 10.737.068 24,46 12,23 15,75 15,759. Indonesia 863.665.546.159 7,64 3,82 3.498.809 7,97 3,98 7,81 7,81

Total 11.298.168.671.558 100 50,00 43.901.248 100,00 50,00 100,00 76,63

Source: APSCO

APSCO’s calculation as shown in Table 1shows Indonesian contribution for 2015-2017 at average of 7.81%. If converted torupiah with 1 USD exchange rate = Rp.13.033,- while APSCO’s budget for 2015-2017 is USD 4.763.075; USD 4.878.756; andUSD 4.990.301, so Indonesia’s contributionfor each period of the year are Rp4.848.225.921,-; Rp 4.965.974.985,-; and Rp5.079.514.108,-.

Expenditures are spending for

APSCO to finance every APSCO’s activitiesor programs, so obtaining benefits that canbe received by member states can be seen inthis funding framework. Expenditures usedto fund APSCO’s events can be divided into3 categories, namely: (1) staff salary:international official, local staff, personneldocuments management; (2) BasicActivities: Activities & Development Plan,Fundamental Research, ExtendingApplications, Education & Training,

INCOME

CONTRIBUTION OFMEMBER STATES

OPTIONAL PROJECTMANAGEMENT FEE

OTHER INCOME

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Membership Expansion, and NetworkManagement and; (3) Administration(Meeting, Traveling Expenses,Communication, OfficeFurniture/Equipment, VehicleMaintenance, Headquarter/BuildingMaintenance, Public Relation/Publications,Miscellaneous).

While APSCO’s programs or eventsin detail can be seen in basic activitiescategory where the details of each sub-group events are as follows: (1) Activities &Development Plan (Investigation &Research); (2) Fundamental Research (Rules& Regulations, Space Science, SpaceTechnology, Space Applications); (3)Extending Applications (InfrastructureConstruction, Database Depreciation,Other); (4) Education & Training (ShortTraining Course, Degree EducationProgram, Distance Education International,International Symposium, Space EducationProgram, Education Cross-countryplatform Development Program,

International Education Cooperationdevelopment program, Exchange ofScientist/Technologists, Maintenance ofRelative Space and Organization NetworkSystems, Maintenance of Data platform andnetwork, Others relared to the activities); (5)Membership Expansion (Investigation &Research, Exhibition, Reception, andOthers), and Network Management(Maintenance of Data Platform). Figure 3shows APSCO’s expenditures framework.

Figure 2 and 3 describes APSCO’sfinancial structure, which consists of incomeand expenditures. From the financialstructural we can see the overview ofAPSCO’s events or programs. Contributionfrom member states will be used asfinancial support in every APSCO’s eventsor programs. Based on Development Plan ofspace activities of asia-pacific spacecooperation organization (2011-2020),APSCO’s scope of events stated inDevelopment of space activities for 2011-2020, period, are as follows:

Table 2.Development Plan of Space Activities APSCO

SpaceTechnologyApplication

SpaceTechnologyDevelop-ment

Space science Educationand training

Spacepolicies, lawandregulation

Capacity building

1. Earthobserva-tionapplication

2. Navigationandpositioningapplication

3. Weatherforecastingapplication

4. Communi-cationapplication

5. Experimen-tal technolo-gies andapplications

1. Earthobserva-tion satellitesystems

2. Communicati-on satellitsystems

3. Navigati-onsatellitesystems

4. Metrologi-cal satellitesystems

5. Scientificexperimental satellite

6. Spaceport7. Space lunch

1. Spaceenviromental and solarphysics

2. Study onexplorationof deepspace

3. Study onspace lifeandmicrogravity

1. Shorttraining

2. Degreeeducation

3. Distanceeducation

4. Spaceeducation

5. Educationresourcescrosscountryplatformdevelopment

6. Internationalcooperatio

1. Spacepolicy

2. Space law3. Space

regulati-on4. Space law

researchcenter

1. Data andinformationsharing andservicecapability

2. Missionplanning andimplementation capability

3. Infrastrukturcontructionandmanagementcapacity

4. Standardization and policycoordinationcaacity

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SpaceTechnologyApplication

SpaceTechnologyDevelop-ment

Space science Educationand training

Spacepolicies, lawandregulation

Capacity building

8. Deep spacemission

n foreducation

5. Spaceeducation andtrainingcapacity

Source: APSCO

Project plans of 2011-2020, based onagreement of first and second councilmeeting, from 40 project list suggested bymember states, and council, has agreed to 6projects specifically as follows:1. Spatial data sharing services pltform

and its application pilot project(DSSPAP)

2. APSCO applied high resolution satellite(APRS)

3. Asia-Pasific Ground Based opticalSatellite Observation System (APOSOS)

4. Application on Compatible navigationterminal System (ACNTS)

5. Research on Atmospheric Effects (RAE)6. Education and training(Activity report PUSJIGAN, LAPAN. 2009)

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Figure 3. APSCO’s ExpendituresSource : Data Processed

EXPENDITURE

STAF SALARY

InternationalOfficial

Local StaffPersonnel

DocumentsManagement

BASICACTIVITIES

Activities &Development

Plan

1. Investigation &Research2. Relative Research

FundamentalResearch

1. Rules & Regulations2. Space Science3. Space Technology4. Space Applications

ExtendingApplications

1.InfrastructureConstruction2. Other3. Database Depreciation

Education &Training

2. Degree Education Program3. Distance Education4. International5. International Symposium6. Space Education Program7. Education Cross-country PlatformDevelopment Program8. International Education CooperationDevelopment Program9. Exchange Of Scientist/Technologists10. Maintenance Of Relative Space AndOrganization Network Systems11. Maintenance Of Data Platform AndNetwork12. Others Relared To The Activities

MembershipExpansion

Investigation & Research, Exibition,Reception, Others

NetworkManagement Maintenance Of Data Platform

ADMINISTRATION

Meeting, Traveling Expenses, Communication,Office Furniture/Equipment, Vehicle Maintenance,Headquarter/Building Maintenance, PublicRelation/Publications, Miscellaneous

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Moreover, to assess the good or poorfinancial performance of the organization,can be conducted by using trend andcommon size analysis or combination ofboth techniques. The focus of such analysis

is on expenditures’ framework. Table 3 andGraph 1 below show the calculation resultsof such analysis based on APSCO’s PlannedBudged Expenditures for the period of2012-2014:

Table 3. Trend and Common Size Analysis of Planned Budged Expenditures (2012 – 2014)Description Planned Budged Expenditures (USD) Trend (%) Common Size (%)

2012 2013 2014 2012 2013 2014 2012 2013 2014

Staff Salary 974,534.77 1,199,532.51 1,239,552.41 100 123 127 34 37 39

Basic Activity 1,398,502.00 1,431,451.00 1,328,600.00 100 102 95 49 45 42

Administration 462,018.20 582,100.00 623,420.00 100 126 135 16 18 20TotalExpenditures 2,835,054.97 3,213,083.51 3,191,572.41 100 113.3 112.6 100 100 100

Source : Data Processed

Graph 1. Planned Budged Expenditures (2012 — 2014)Source: Data Processed

From Table 3 and Graph 1 we can see thatbased on trend analysis total expenditure ofAPSCO increased by 13.3% in 2013 and12.6% in 2014. These due to an increase ofstaff salary by 23% in 2013 and by 27% in2014, and for administration increased by

26% and 35% respectively in 2013 and 2014.However, for the basic activity onlyexperience an increase by 2% in 2013 and adecrease by 5% in 2014.

Based on common size analysis wefound that the expenditure for staff salary

Staff Salary Basic Activity Adm. TotalExpenditures

2012 Budged riil 974.534,77 1.398.502,00 462.018,20 2.835.054,972013 Budged riil 1.199.532,51 1.431.451,00 582.100,00 3.213.083,512014 Budged riil 1.239.552,41 1.328.600,00 623.420,00 3.191.572,41

-

500.000,00

1.000.000,00

1.500.000,00

2.000.000,00

2.500.000,00

3.000.000,00

3.500.000,00

USD

14

increased by 34%, 37%, and 39%respectively for 2012, 2013 and 2014. Theexpenditure for Basic Activity decreasedevery year by 49%, 45%, and 42%. While foradministration the expenditure alsoincreased by 16%, 18%, and 20% in 2012,2013.

The above analysis shows that theexpenditure of staff salary andadministration increased every year. Incontrast, the expenditure of basic activitiesdecreases every year for the period of 2012-2014. It means that the number ofparticipants involves and basic activitiesdeclined every year. However, the total

budget allocated for basic activities remainhigher compare to total budget allocated forstaff salary and administration.

Budged allocation, which has beenplanned and become APSCO’s programthen used in the fiscal year. Table 4 showsthe real expenditure during 2012 – 2014.This Table also shows calculation results,which can be used to measure financialperformance of APSCO using trend analysisand common size, or combination of bothanalyses. The following are the trendcalculation or tendency and common sizefrom each expenditure:

Table 4. Trend Analysis and Common Size of Real Expenditures (2012 — 2014)

DescriptionReal Expenditure (USD) Trend (%) Common Size (%)

2012 2013 2014 2012 2013 2014 2012 2013 2014

Staff Salary 826,144.01 992,120.06 1,107,531.08 100 120 134 44 43 38

Basic Activity 571,259.28 735,033.78 1,314,239.38 100 129 230 30 32 45

Administration 477,115.10 564,819.29 466,797.31 100 118 98 26 25 16DonationExpenditure - 1,480.62 - - - - - 0 -

TotalExpenditures 1,874,518.39 2,293,453.75 2,888,567.77 100 122 154 100 100 100

Source: Data Processed

Staff Salary Basic Activity Adm. TotalExpenditures

Realisasi 2012 Actual 826.144,01 571.259,28 477.115,10 1.874.518,39Realisasi 2013 Actual 992.120,06 735.033,78 564.819,29 2.293.453,75Realisasi 2014 Actual 1.107.531,08 1.314.239,38 466.797,31 2.888.567,77

-

500.000,00

1.000.000,00

1.500.000,00

2.000.000,00

2.500.000,00

3.000.000,00

3.500.000,00

USD

15

Graph 2. Trend Real Expenditure (2012 – 2014)Source: Data Processed

As shown in Table 4, there was realexpenditure apart from staff salary, basicactivity, and administration, namelyDonation Expenditure at the amount of $1,480.62 in 2013. Total real expendituresduring 2012-2014 increased by 22% in 2013and 54% in 2014. Real expenditure for staffsalary and basic activity increased by 20%and 34% and by 29 and 130% respectively in2013 and 2014. Real expenditure foradministration increased by 18% in 2013and then experienced a decline by 2% in2014.

Based on common size calculation Ifound that the average percentage ofcontribution for staff salary reach 42%, forbasic activities as much as 36% and foradministration at the amount of 22%.Nevertheless, if we look at the trendpercentage of contribution, I found that thereal APSCO’s expenditures for basic activityincreased significantly from 2012 to 2014.Real expenditure in 2012 at the amount of30%, in 2013 reach 32%, and in 2014 equals45%. On the other hand the contribution

percentage for staff salary in 2012, 2013, and2014 decreased year by year at the amountof 44%, 43%, and 38%, and foradministration the real expenditure in 2012at the amount of 26%, in 2013 equals 25%and decreased to16% in 2014.

Based on the trend of contribution Ifound specifically (1) increasing trend forcontribution percentage of basic activityand decreasing trend for bothadministration and staff salary; (2) In 2014,the highest contribution percentage lies onbasic activity’s component. This indicatesthat member states maximized theutilization of the allocated budget comingfrom APSCO’s annual contribution paid bymember states.

The performance analysis usingtrend analysis or common size, andcombination of trend and common size onplanned and real expenditure provide acomprehensive description of APSCO’sfinancial performance. The following tablesand graphs show the direct comparisonbetween planned and real expenditure forthe period of 2012-2014:

Table 5. Planned and Real Expenditure (2012 – 2014)

Source : Data Processed

Description Planned Expenditure (USD) Real Expenditure (USD)2012 2013 2014 2012 2013 2014

Staff Salary 974,534.77 1,199,532.51 1,239,552.41 826,144.01 992,120.06 1,107,531.08

Basic Activity 1,398,502.00 1,431,451.00 1,328,600.00 571,259.28 735,033.78 1,314,239.38

Adm. 462,018.20 582,100.00 623,420.00 477,115.10 564,819.29 466,797.31

Donation Expenditure - - - - 1,480.62 -

Total Expenditures 2,835,054.97 3,213,083.51 3,191,572.41 1,874,518.39 2,293,453.75 2,888,567.77

16

Graph 3. Planned and Real Expenditure (2012 – 2014)Source : Data Processed

Graph 4. Planned and Real Expenditure For Staff Salary, Basic Activity and Administration Data (2012 – 2014)Source: Data Processed

Table 6. Trend Analysis for Planned and Real Budged (2012 – 2014)

DescriptionTREND Analysis

Planned Expenditure (%) Real Expenditure (%)2012 2013 2014 2012 2013 2014

Staff Salary 100 123 127 100 120 134Basic Activity 100 102 95 100 129 230

- 200.000,00 400.000,00 600.000,00 800.000,00

1.000.000,00 1.200.000,00 1.400.000,00 1.600.000,00

Staff Salary BasicActivity

Adm. Staff Salary BasicActivity

Adm. Staff Salary BasicActivity

Adm.

2012 2013 2014

17

Administration 100 126 135 100 118 98Total Expenditures 100 113.3 112.6 100 122 154

Source: Data Processed

Table 7. Common Size for Planned and Real Budget (2012 – 2014)

Expenditure COMMON SIZEPlanned Budget (%) Real Budget (%)

2012 2013 2014 2012 2013 2014Staff Salary 34 37 39 44 43 38Basic Activity 49 45 42 30 32 45Administration 16 18 20 25 25 16Total Expenditures 100 100 100 100 100 100

Source: Data Processed

In Table 6, we can see the trend of increasefor real expenditure is higher than realexpenditure. In 2012 to 2013, plannedexpenditure increased by 13.3% and thendecreased by 12.6%, meanwhile realexpenditure increased continuously andsignificantly with trend increase by 22% and54%. The trend per component of plannedexpenditure for basic activity decreasedwhile staff salary and administrationincreased year by year. In contrast the trendrealization per component which showssignificant trend increasing for basic activityup to 130% in 2014, and then followed byincreasing trend of staff salary by 34% in2014 and decreasing trend foradministration.

Table 7 shows contribution for eachexpenditures’ components on totalexpenditures. The highest contribution forplanned expenditure was the basic activityaccount and the lowest contribution wasadministration component. However, thebasic activity’s contribution has adecreasing trend while the staff salary andadministration increased. On the otherhand, for real expenditure I found that thehighest contribution was the staff salary,and followed by basic activity, andadministration. However, there is a positivesignal that basic activity for real

expenditure has an increasing trend whenstaff salary and administration’s trenddecreased. In fact, at the end of 2014, thehighest expenditure was the basic activity.

V. CONCLUSIONS

From analysis’ result based on finalcalculation using common size, trend, andcombination of both financial reportanalysis, shows that APSCO has a goodfinancial performance. It can be concludedaccording to the increasing of trendrealization in basic activity, while staffsalary and administration trend realizationdecreased. The result of common size alsoshows that basic activity’s contributionrealization in the end of the year becomesthe highest contribution with increasingcontribution’s trend.

High realization on basic activityshows that member state maximize theusing of allocated APSCO’s annualcontribution paid by member state. Thisalso shows that APSCO has a seriousconcern on the improvement oforganization’s performance. By the highrealization of basic activity components,means that APSCO concerns on program’simprovement through its activities’implementation. This, strengthen the

18

previous analysis that mention aboutAPSCO’s high com

Analysis based on final calculationalso shows allocation structure of budgedriil, funds allocation to achieve programswith decreasing trend even if basic activityhas the biggest contribution (allocatedmost), but the trend shows a decrease. Thiscondition is contrary to staff salary andadministration, where contribution is lower

than basic activity, but an increasing trend.Moreover, allocated funds for staff salary isalmost similar to basic activity’s allocatedfunds at the end of the year. By seeing thestructure of budged riil’s funds allocation,APSCO must create strategic managementplan for its expenditure structure, reducingadministrative costs and staff salary tomaintain and improve its financialperformance.

On the above is in accordance withthe basis contained in PSAK No.45 whichstated that performance measurement usedin order to assess services (program) givenby non-profit organizations and its ability tocontinue giving those services (program),how the management (APSCO) carries outthe responsibilities and other aspects fromits performance. And also, Lee (2010)statement, to understand whether anorganization is financially vulnerable or not,an organization should know its currentfinancial performance. Douglas (1987) andWeisbrod (1988) in Lee (2010) pointed out,nonprofit organizations play an importantrole in satisfying the minority’s demandsfor public goods and services.

Using the premise above, it is betterfor Indonesia to join as a full member ofAPSCO and need to utilize maximally theprograms or activities offered by APSCO.

Another premise is corresponding to LawNumber 21of 2013 concerning Aero-Spaceand Precidential Decree Number 64 of 1999.In allocation structure of real-budged whichhas decreasing trend even though itscontribution is the highest, hence, byIndonesia ratifies APSCO’s convention,Indonesia can place a minimum of oneperson to have positions in APSCOorganization who can contribute in creatingstrategic management plan for itsexpenditure structure.

ACKNOWLEDGEMENTS

Author is very grateful to Chairman of theCenter for Aerospace Policy Studies,National Institute of Aeronautics and Spacewho has contributed to this research. Also,thank you to the reviewers of this article.

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