Abstract
This study aims to analyze the influence of mineral export policy through government regulation No.1 Tahun 2014 and No.1 Tahun 2017. Export policy refers to the government regulation that mining companies must carry out mineral processing in Indonesia before export is carried out. This study compares the value of mining companies before, during, and after the regulation is applied which is analyzed using market performance and accounting performance. The mining companies are listed in Indonesia Stock Exchange (IDX) period 2011-2017 that has criteria according to UU No.4 Tahun 2009. This study used purposive sampling which had a population of 49 companies with the sampel of 20 companies. The data were processed by using Friedman and wilcoxon analysis. The results of this study indicate that there is a difference in the value of the company due to the policy applied to decrease the value of the company. The decline in the value of the company occurred after the government imposed government regulation No.1 Tahun 2014, after the government regulation was not implemented the value of the company gradually improved. The result of this study shows that the value of Market Performance that has chi square 6.100(p=0.047) is significant. Meanwhile, the result is not siqnificant for the accounting performance based on DER has chi square 1.300(p=0.500). The results are significant for ROA which has chi square 14.700 (p=0.001), chi square of ROE is 15.600 (p=0,000) and chi square of ROI is 14.800 (p=0.000).
Highlights
Indonesia is one of the countries rich in mineral resources such as nickel, gold, silver, bauxite, copper and tin, but has not been managed optimally to increase state revenues and prosper the Indonesian people (Syahrir, 2017)
The Indonesian government implemented the policies contained in PP No 1 of 2014 in order to increase mineral added value for the people and the interests of regional development
According to research conducted by Satriawan (2015) these regulations can have an impact on the Indonesian economy
Summary
Indonesia is one of the countries rich in mineral resources such as nickel, gold, silver, bauxite, copper and tin, but has not been managed optimally to increase state revenues and prosper the Indonesian people (Syahrir, 2017). The Indonesian government implemented the policies contained in PP No 1 of 2014 in order to increase mineral added value for the people and the interests of regional development. Based on the considerations contained in PP No 23 of 2010 concerning Implementation of Mineral and Coal Mining Business Activities. Mining companies need to purify coal and minerals in the country, in order to increase added value of minerals. The policy on raw mineral exports prohibits a number of positive impacts including the decline in illegal mining practices, encouraging the development of processing industries, increasing economic growth, and reducing the rate of environmental degradation (Tribun Bisnis, 2016). Because the government prohibits mining companies from exporting raw minerals. Large mining companies such as Freeport and Newmont, are looking for loopholes to reject the enactment of the Mineral and Coal Law because the company reap huge profits from the export of raw minerals
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