Financial Distress Prediction Model in the Construction Industry in Indonesia

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The PCA model predicted financial distress with 94% accuracy for T-1 and 93% for T-2, demonstrating its high effectiveness.
Key evidence reveals that profitability is a significant predictor in distress modeling for construction companies during 2017–2024.
Assessment used logistic regression and confusion matrix methods applied to data from 33 companies on the Indonesia Stock Exchange.
The findings highlight the impact of government infrastructure spending on improving prediction accuracy for financial health.

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Evaluation shows PCA model predicts financial distress effectively in Indonesian construction firms, suggesting improved fiscal monitoring.

Angga Surya Adiputra (2025) studied this question.

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Evaluation shows PCA model predicts financial distress effectively in Indonesian construction firms, suggesting improved fiscal monitoring.