Indonesian Mining Research Articles

PREDICTION OF MULTI-SEAM MINING-INDUCED SURFACE SUBSIDENCE IN UNDERGROUND COAL MINE IN INDONESIA

This paper attempts to predict the surface subsidence induced by multi-seam longwall mining in the PT Gerbang Daya Mandiri (GDM) underground coal mine in Indonesia. Several numerical models of multi-seam longwall mining under various depths were built in the finite difference code software “FLAC3D” which was used as a tool for numerical simulations. Effect of mining sequence and influence of lower seam mining were firstly investigated. The angle of draw (AoD) and maximum surface subsidence (Smax) were used to describe characteristics of the surface subsidence. Based on simulated results, it is indicated that the undermining provides a better mining sequence in multi-seam longwall mining compared to the overmining. Mining the coal seam in an undermining order will not cause any difficult mining conditions in a lower seam, whereas some ground control problems in an upper seam are expected when the coal seam is mined in an overmining order. Under all mining depths in the undermining, extracting the lower seam panels significantly influences the magnitude of surface subsidence. The AoD and Smax increase significantly after all panels in the lower seam is mined. This indicates that very large surface subsidence is expected when multi-seam mining is applied at GDM underground coal mine. An application of some countermeasures such as adopting a large pillar width and a small panel width is suggested in this underground coal mine in order to minimize the surface subsidence caused by multi-seam longwall mining. Minimizing the surface subsidence by adopting a large pillar width and a small panel width is therefore numerically investigated in this paper. Based on simulated results, it is found that the AoD and Smax decrease significantly when larger pillar width and narrower panel width are adopted. The use of larger pillar width and narrower panel width result in smaller AoD and Smax.

EnglishExamination Of Factors Determining Transfer Price In Indonesian Mining Companies

The purpose of this study was to examine the effect of firm size, leverage, tax planning, tunneling incentives, intangible assets, and multinationality on the decision to transfer pricing. The research was conducted on mining sector companies listed on the Indonesia Stock Exchange in 2015-2019 by applying multiple linier regression analysis. Samples were obtained by purposive sampling method. Based on the results of the hypotheses in this study, it shows that firm size, leverage, intangible assets, multinationality affect transfer pricing, whereas tax planning and tunneling incentives do not affect transfer pricing. The results have substantial implications for theory as well as practice, in understanding transfer pricing decision, particularly for mining companies. 
 Keywords: Transfer Pricing; Leverage; Intangible Assets; Multinationality.

Implications of Changing the Terminology of a Contract of Work to a Mining Business Permit for Mineral and Coal Mining

The existence of a paradigm that has changed from being young to investing has created various opinions on Law Number 3 of 2020 concerning Minerals and Coal. So it is necessary to make a comprehensive study that examines the implications of changing the terminology of a contract of work to a mining business permit (IUP). For this reason, researchers can formulate two problem formulations, first, how are the differences between contracts of work and mining business permits (IUP) in Indonesia. Second, what are the implications of changing the contract of work into a mining business permit (IUP) for mineral and coal mining in Indonesia? This research is normative juridical research using a statutory approach and a conceptual approach. The results show that the term contract of work has a long history with changing regulatory concepts, wherein Law Number 3 of 2020 there is a cut in regional authority, as well as a change in the contract of work regime which was changed to a mining business permit regime. These changes also have implications for the economic, social, cultural, and environmental sectors. Therefore, the central government must be able to ensure that these changes are also able to have a positive impact on the welfare of the people in the region, both economic, social, and cultural welfare region.

“The economic impact of tin mining in Indonesia during an era of decentralisation, 2001–2015: A case study of Kepulauan Bangka Belitung Province”

This paper examines the economic impacts of tin mining activities in Indonesia during the country's decentralisation period, 2001–2015, focusing on the case of Kepulauan Bangka Belitung Province. Here, the evidence points to tin mining contributing significantly to Gross Regional Domestic Product (GRDP) and, through catalysing backward linkages, having fuelled growth in local construction and manufacturing trades. In addition, the multiplier effects of tin mining have significantly affected household income across the province. From an economic standpoint, therefore, tin mining has not caused a resource curse in Kepulauan Bangka Belitung Province, although production has been associated with a series of adverse social and environmental impacts.

Alternative Dispute Resolution in Mining Disputes with the Mechanism of Mediation

In Article 33 of the constitution of the Republic of Indonesia Year 1945, the management and exertion needed protection and legal certainty both to the public as a common property over the excavated material, the entrepreneur as a manager, and the government as a regulator. Mining activities often cause disputes involving the government, employers mining (investors), and the community in the territory of the mining operations. Therefore, need to be pursued to resolve the dispute through the dispute settlement mechanism. Issues to be examined include the development of the regulation of business activities the mining sector in Indonesia and the dispute settlement mechanism in the field of mining in order to create legal certainty and justice. This paper discusses the completion of mining disputes by alternative dispute resolution in mining through the concept of mediation. Be aware that the development of the regulation of the activities of the mining business in Indonesia has existed since the reign of the Dutch east Indies with the entry into force of the Indische Mijnwet 1899, after the independent published a Regulation Number 37 of the 1960s about Mining, Regulation Number 44 of 1960 on Oil and Gas, LAW Number 37 of Prp. 1960 about Mining, later replaced by LAW No. 11 of 1967 about the Basic Provisions of Mining which is then lifted and the publication of LAW No. 4 Year 2009 on Mineral and Coal Mining. As for the dispute settlement mechanism of mining through a few options that include adjudications, non-adjudications, the court, arbitration, ADR, mediation and traditional institutions. In this discussion the author argues that the choice of dispute resolution through mediation is the right choice rather than the settlement of disputes in court. This is due to the mediation has several advantages such as the dispute resolution process is faster, the result of an agreement that is a “win-win solution”, as well as the guarantee of the confidentiality of the dispute from the public spotlight. Based on these advantages, mediation is considered more appropriate to be applied in a contract dispute mining in Indonesia. Keywords: Alternative Dispute Resolution, Mining, Mediation.

MARBLE MINING AT PT. MAKASSAR MULIA INDAH MARBLE MAROS REGENCY

Mining is the extraction of valuable minerals from the earth. Marble recovered by the mining process. Marble is usually used as a building material. PT. Makassar Marmer Muliaindah is a private company, that is actively operating in marble mining in Indonesia. The mining system applied by PT. Makassar Marmer Muliaindah is Open Pit System with a Quarry method. Phases of mining activities conducted by PT. Makassar Marmer Muliaindah includes clearing, stripping, drilling, cutting, block splitting, block release, block refinement, loading, hauling, and stocking.

Crypto Minning : Indonesia Carbon Tax Challenges and Safeguarding International Commitment on Human Security

The need for financial transactions in the virtual world that continues to grow demands an increase in the speed, quality, and quantity of various innovations and discoveries in the field of financial technology known as cryptocurrency. This discovery encourages various developments of the virtual world economy which is increasingly diverse and growing according to the needs and interests of existing economic actors. Cryptocurrencies are currently only considered as digital assets that can be traded so they are not recognized as a means of payment. However, cryptocurrency trading in Indonesia is a fast-growing field, so its economic value continues to rise rapidly. This encourages the emergence of crypto mining businesses that tend to use large amounts of electricity. The issue of carbon footprint in cryto mining has in several ways been the cause of the prohibition of this activity. In Indonesia, this activity is still not banned, in 2022 a carbon tax will be applied where every kilogram of carbon equivalent emissions that exceed a certain cap will be subjected to Rp-30 (0.21 cent dollar) tax. So the paper tries to analyze the extent to which this carbon tax will affect crypto mining in Indonesia and how the mitigation of crypto mining's carbon footprint can be managed through proper regulation without disturbing the crypto economic sector that is blooming in Indonesia.

Praktik Pengungkapan Sustainability Report dan Environmental Incidents: Studi pada Sustainability Report Perusahaan BUMN PT. Pertamina (Persero) Tahun 2017-2018

Mining industry sector companies are companies that contribute a lot income to the state, but with many mining companies it is possible that will damage the surrounding natural environment. According to the Environmental Performance Index (EPI) ranking, Indonesia ranks 133 out of 180 countries. In Indonesia, not a few cases that occur related to environmental pollution. About 70% of environmental damage in Indonesia is caused by mining operations. In practice, a company needs to build a harmonious relationship with the community. These activities are usually outlined in the form of corporate social responsibility or what we often hear as corporate social responsibility or CSR.
 To communicate these activities, the company realized to make a report that not only provides financial information about the company but also provides social and environmental information, which is called sustainability report. PT Pertamina is a state-owned company in charge of managing oil and gas mining in Indonesia. Pertamina has been doing Sustainability Report reporting practices since 2011, using standards issued by the Global Reporting Initiatives (GRI). The results showed, the average disclosure of Pertamina's sustainability report during the research years were 28% and 37% respectively. The results of the data analysis also showed that raising news about environmental incidents caused by Pertamina's operational activities increased the extent of disclosure to Pertamina's sustainability report in the following year. Pertamina made the sustainability report to restore the company's positive image and the legitimacy of the stakeholders towards Pertamina's operational activities.

Tinjauan Yuridis Pertanggungjawaban Pidana Terhadap Pelaku Penambangan Pasir Ilegal

The rise of Illegal Sand Mining is due to the lack of firm action from Law Enforcers and the application of low penalties. This study aims to examine and analyze legal arrangements, criminal liability and the basis for judges' considerations in making decisions against illegal sand mining actors in Decision number 424/Pid.B/LH/2020/PN Kis. This research uses a normative juridical research method which is descriptive analytical. Data collection techniques were carried out based on library research and field research which were analyzed qualitatively. The results show that sand mining in Indonesia is regulated in several laws and regulations, among others, the Law on Environmental Protection and Management, the Law on Mineral and Coal Mining, Government Regulation on Mining Areas and Government Regulation on the Implementation of Mineral Mining Business Activities. and Coal. Criminal liability against perpetrators of illegal sand mining is regulated in Article 158 of Law no. 4 of 2009 concerning Mineral and Coal Mining with a maximum penalty of 10 (ten) years and a maximum fine of 10,000,000,000.00 (Ten Billion Rupiah). The basis for the judge's consideration in imposing the decision Number 424/Pid.B/LH/2020/PN Kis against the Defendant was sentenced to imprisonment for 10 (ten) months and a fine of Rp. 500,000,000.00 (Five hundred million Rupiah) in which the Judge's Decision was deemed too mild does not realize the purpose of punishment itself to provide a deterrent effect.

The Motivation Behind CSR Manager Role in Indonesian Mining Companies

The goal of this research is to investigate the underlying motivations for the role of the CSR manager. The study used smart PLS analysis to identify three motivations behind the role of CSR managers in mining companies, namely economic, legal and ethical domains. The study includes 114 managers or representatives from CSR-implementing mining companies in South Sumatera, Indonesia. The manager of mining companies in this region is mandated to implement CSR based on the rules of legislation. The study found that following Indonesian CSR legislation is not a significant motivation for CSR managers. Instead, CSR managers' decisions are influenced by economic motivation. Furthermore, analysis results revealed that CSR managers' motivation for economic and legal domains influenced their role in CSR.
 Keywords: CSR, mining companies, motivation, role.

Eucalyptus Leaves as Potential Indicators of Gold Mine in Indonesia

Eucalyptus is a plant that is able to absorb gold (Au) particles from the soil and store them in the leaves. Eucalyptus roots have the ability to penetrate the soil of the calcrete zone, which is rich in the mineral calcium (Ca). Calcium is a chemical element with the symbol Ca and atomic number 20. As an alkaline earth metal, calcium is a reactive metal that forms a dark oxide-nitride layer when exposed to air. and contains Au particles as impurities, making this plant a potential natural indicator (biogeochemical) of potential Au metal mining. The Au content in eucalyptus leaves can be determined by using the XRF (X-Ray Fluorescence) instrumentation material analysis method for qualitative analysis and AAS (Atomic Absorption Spectroscopy) for quantitative results. The form of XRF characterization of the intensity versus energy spectrum of certain elements from the XRF analysis results obtained is a spectrum with a peak power of 9.731 keV which indicates the presence of Au metal in the sample. The results obtained qualitatively are the Au metal content in the eucalyptus leaf sample of (9.0 ± 0.5) ppm. However, the Au metal content in each leaf sample was different. This provides information that Eucalyptus from different plants has the potential to be a biogeochemical indicator of potential Au metal mining in Indonesia

Pengaruh Penambangan Pasir Terhadap Kondisi Sosial - Ekonomi, Fisik Dan Keluhan Kesehatan Masyarakat (Studi Kasus: Desa Pematang Kasih Kecamatan Mesuji, Ogan Komering Ilir)

Sand mining in Indonesia with an open pit mining system in the river has been carried out for decades. In the past, the use of traditional tools such as hoes, shovels and cikrak with human power is a mining model that is widely available in rivers. However, with the increasing demand for river sand, mining using manual tools has began to be replaced by sand mining with a sand suction machine. It should be noted that initially the majority of the people in Pematang Kasih Village were farm laborers who earned income only when the harvest season arrived. The occurrence of an economic crisis in some people in the village, with limited job opportunities in Pematang Kasih Village caused them to look for alternative livelihoods in other sectors to meet their daily needs, one of which is sand mining. The purpose of this study was to determine the effect of sand mining activities on the socio-economic, physical and public health conditions in Pematang Kasih Village. This research conducted survey method and uses quantitative descriptive analysis. It is basically gave a positive impact in the form of increasing income for miners and the ease of fulfilling local sand materials at cheaper prices and short ordering times. Meanwhile, the negative impact felt by the community is mostly through the sand mining business which can result in environmental damage such as river pollution caused by the liquid waste, disturbance of health and safety of the population, air pollution in the form of dust and clean water pollution, as well as roads damaged by the sand transporting route that crosses the area around the population. Keywords: Sand Mining, Socio-Economic, Environmental Damage, Public Health

Business diversification of coal mining companies as a strategy facing coal price volatility

This study aims to determine the effect of business diversification on stock prices by mediating company performance, represented by the variable ROE and EPS in a fluctuating coal price situation. The data used are 16 companies engaged in coal mining in Indonesia and listed on the Indonesia Stock Exchange (IDX) from 2012 to 2019. Using two analysis methods: path analysis to examine direct and indirect relationships between variables and different tests to see differences in the performance of companies that diversify and do not diversify. The results showed that coal commodity prices had a significant positive effect on stock prices and indirectly, through ROE and EPS, had a significant positive impact on stock prices. Business diversification directly has a significant negative impact on stock prices and indirectly through EPS positively affects stock prices. Business diversification provides a substantial difference to EPS and does not provide a significant difference to ROE.

The Law Enforcement of Environmental Law against Illegal Mining

The purpose of this study is to identify and analyze law enforcement against illegal mining in Indonesia. Based on the results of the study, it can be concluded that illegal mining law enforcement is an unlawful act, regulated by Act No. 4 of 2009 concerning Mineral and Coal Mining, the threat of punishment is regulated from Articles 158 to 165. Administrative law enforcement in illegal mining crimes by the authority law enforcement is carried out in a preventive manner. Supervision in law enforcement of mining administration in a limited manner has been regulated as stipulated in the provisions of Article 39, Article 78 and Article 79 concerning Mining Business Permits (IUP) or Special Mining Business Permits (IUPK). The signs contained in the Mining Business Permit (IUP) or Special Mining Business Permit (IUPK), are obligations that must be carried out by the recipient of the Mining Business Permit (IUP) or Special Mining Business Permit (IUPK), and if a violation is committed, the official who issuing the permit has the right to impose sanctions. Based on this suggestion, it is hoped that there will be coordination and integration between relevant agencies, in particular to carry out socialization activities for legal counseling regarding Act No. 4 of 2009.

Analisis Faktor-Faktor yang Memengaruhi Leverage dan Profitabilitas Perusahaan

A firm’s leverage and profitability are two significant aspects of overall firm management. This study mainly aims at examining and analyzing the determinants of leverage and profitability in Indonesian mining firms listed by including both trade-off theory and pecking order theory approaches. Secondary data as sample has been collected for 26 Indonesian mining firms listed in Indonesian stock exchange (IDX), for the period of 9 years from 2010 to 2018. Firm’s size, asset tangibility, asset growth, and liquidity have been selected as exogenous variables to examine their effect on endogenous variables, i.e., leverage and profitability. Path analysis technique was employed to analyze the research data. The results indicate that leverage exerts negative impact on firm profitability. The finding results of this study provides great insights for Indonesian mining firm management, to integrate the financial leverage models in their financial decision to obtain optimum firm profitability.

How Organizational Culture Moderate the Effect of Total Productive Maintenance Practice on Organization’s Operational Performance? Evidences from Indonesian Mining Industry

The industry needed a system to support its operation when most of the processes were done by equipment or machines. Total Productive Maintenance (TPM) was a system to ensure all equipment or machines run in optimal performance for long period by fully supported by top management until the bottom level. Implementation of this system in the mining industry was still seldom due to some factors and organizational culture was one of the reasons. The purpose of this research was to analyze the influence of TPM implementation on operational performance by moderating the effect of organizational culture in the mining industry by using a two-step approach of structural equation model (SEM). The research type was under explanative research with hypothesis testing from primary data that was obtained from distributing questionnaires and direct interviews in the field which was analyzed by using Lisrel 8.7. This research showed that the construct of TPM has a significant impact to influence operation performance directly in the mining industry with a t-value of 3.54 and organization culture also increases the significance by moderating effect with t-value of interaction 5.28 was higher than 1.96 while organizational culture was not significant to influence operational performance directly that was showed by t-value 1.22. This research had a novelty for studying TPM practice in Indonesian mining by using SEM to analyze the moderating effect of organizational culture. The managerial implication of this research was a guideline for decision-makers to implement TPM by considering developing, group, hierarchical, and rationale culture to improve operational performance in the Indonesian mining industry.

Mining Corruption and Environmental Degradation in Indonesia: Critical Legal Issues

<div><table cellspacing="0" cellpadding="0" align="left"><tbody><tr><td align="left" valign="top"><p class="AbstractText">Indonesia has enacted mining law, environmental protection law, and a number of rules addressing mining and environmental issues. However, the establishment of these numerous laws and regulations has not resulted in a decline in corruption cases and environmental degradation. In fact, government officials are frequently lenient with mining industry owners who fail to follow good environmental standards. This is critical since Indonesia has spent the last two decades attempting to resolve corruption and environmental challenges. This study describes specific instances of mining and environmental law confusion resulting from corrupt activities. The study takes a normative legal approach. Resources have been gathered through examinations of mining and environmental laws and regulations, as well as reports by multiple authorities that track the same subject. The study demonstrates how prior Indonesian mining law policy acknowledged regional governments as mining authorities. The policy has caused widespread mining corruption, particularly in the area of business permits, involving regional political leaders and the private sector. The irresponsibility of regional political elites has jeopardized the environment and ecosystem. It is also an echo of overlapping legislation and authorities in the mining and environmental sectors.</p></td></tr></tbody></table></div>

Slope stability and bearing capacity analysis of disposal in open-pit coal mining

Open-pit mine is a mining method by excavating overburden strata to get coal seam near the surface. One of potential hazard often occur in mining area is slope failure. The hazard can be prevented by performing geotechnical study. The study is required to provide recommendations regarding safe design of slope geometries in both open-pit and disposal sites. This paper produce information related to the results of slope stability analysis especially on the disposal embankment. The analysis is performed by using the limit equilibrium method. It is also produce the bearing capacity analysis of subsurface strata in disposal site. The analysis is carried out to determine the ability of the strata to burden the load of disposal embankment above. The location was selected in a site of open-pit coal mine in Indonesia. The results will become consideration for management in designing slope disposal and choosing the location of disposal facilities.

Towards collective action in conflict resolution on environmental impacts due to coal mining in Indonesia

The Indonesian government has formally determined large-scale coal production to meet economic initiatives. This study uses the documentary method. The study found that coal mining activity has both positive and negative impacts. Coal mining creates environmental damage resulting in conflicts and advantaged and disadvantaged groups. The conflict resolution approach tends to be partial and has not resolved the problems associated with coal mining because the community tends to be victimized. Taking a participatory and inclusive collective action approach is essential to mitigate challenges coal mining entails because environmental problems require diverse stakeholders’ involvement. The commitment of coal mining entrepreneurs and the government’s concrete actions to minimize the negative impacts of coal mining cannot be further delayed which are to ensure the sustainability of Indonesia’s resources, human life, and the natural environment.

The NDVI algorithm utilization on the google earth engine platform to monitor changes in forest density in mining area

Periodic forest monitoring needs to be done to avoid forest degradation. In general, forest monitoring can be conducted manually (field surveys) or using technological innovations such as remote sensing data derived from aerial images (drone results) or cloud computing-based image processing. Currently, remote sensing technology provides large-scale forest monitoring using multispectral sensors and various vegetation index processing algorithms. This study aimed to evaluate the use of the Google Earth Engine (GEE) platform, a geospatial dataset platform, in the Vale Indonesia mining concession area to improve accountable forest monitoring. This platform integrates a set of programming methods with a publicly accessible time-series database of satellite imaging services. The method used is NDVI processing on Landsat multispectral images in time series format, which allows for the description of changes in forest density levels over time. The results of this NDVI study conducted on the GEE platform have the potential to be used as a tool and additional supporting data for monitoring forest conditions and improvement in mining regions.