Study on Capital Participation of Kutai Kartanegara Government into Bankaltim

Return on Investment (ROI) is a tool to measure the level of effectiveness of capital participation of Kutai Kartanegara Regency Government investment into Bankaltim. The analysis focused on the ratio between the earnings obtained in the form of dividends per year and the total investment in the period of 2006 to 2014. The purpose of this study was to measure the effectiveness of capital participation of Kutai Kartanegara Government decisions into Bankaltim. The benefit of capital participation is to increase the regional revenue. Data used was secondary data which consists of the capital invested information, the dividend earned by the government from bank Kaltim and the bank rate average in 2006 to 2014 period. The result of the study showed ROI 2006 to 2014 period respectively as follows 17.34 %, 39.63 %, 47.81 %, 50.09 %, 33.59 %, 30.62 %, 26.28 %, 28.19 %, and 40.01 %. The average rate of ROI percentage was 34.85 % more than average bank rates that was 7.67 %. It was concluded that the decision of capital participation of the government into Bankaltim seen from the financial aspect was effective.