Mining Companies In Indonesia Research Articles

How the Financial Performance of Coal Mining & Metal, and Mineral Mining Companies in Indonesia's Stock Market From 2017 to 2022 Influenced Their Stock Prices

This research ascertained the effect of return on asset, debt to equity, company size, and current ratio on stock prices. The study applied descriptive quantitative. The method includes library research that utilizes data from secondary sources. The population in this study are all coal mining, metal, and mineral mining companies registered on the Indonesia Stock Exchange in the 2017-2022 period. Using the purposive sampling method, 26 companies are obtained with a total of 31 data observations. In analysing the data, the research used panel data analysis (fixed effect). Meanwhile data testing was done by using the E-views 10 program. The findings revealed that partial return on assets and company size had an effect on stock prices, whereas debt-to-equity and current ratios had no effect on stock prices. The study found that several factors which are return on asset, debt-to-equity, company size, and current ratio all simultaneously impact stock prices.

Productivity Improvement of Coal Hauling using Lean Techniques: A Case Study in Coal Mining Company in Indonesia

The adoption of the lean concept as a company strategy to creates competitive advantages and provides important savings opportunities has been increasing recently. Its application has been extended from manufacturing to almost all types of industry including coal mining under the realization of the need for productivity improvement and the need for efficient operation. However, published information and articles showing the real application of lean in the mining sectors are still scarce. The objective of this paper is to show the application of lean production method in coal hauling operations in one of coal mining company in Indonesia. The lean method with Plan, Do, Check, Act (PDCA) cycle has been utilized to identify, analyze and improve productivity. The main result of this study reveals that implementing lean increase the productivity of coal hauling operations from 115 to 129 tons per hour. Statistical test using two sample t-test confirmed the significance of the result. This paper demonstrates lean application in coal hauling operations and bring significant result.

Morning Sustainalytics: Environmental, Social, Governance and Financial Leverage Risk Ratings on the Financial Performance of Mining Companies in Indonesia

This research investigates the influence of Environmental, Social and Governance (LST) Risk Ratings on the Financial Performance of mining companies in Indonesia. The financial performance of this research is focused on return on assets (ROA). This research design uses associative quantitative. The population of this research is mining companies in Indonesia, which are listed on the Indonesian Stock Exchange (BEI). The sample from the population was selected using a selection approach, namely mining companies that had complete disclosure of ESG Risk Rating information from Morning Sustainalytics and comprehensive financial reports and did not record losses in consecutive financial reports in the 2019-2022 period. Statistical research results show a 95% confidence level that both ESG Risk Rating and Financial Leverage negatively impact financial performance (ROA) in mining companies in Indonesia. ROA is influenced by Risk Rating ESG, which implies that a mining company implements sustainable practices or has a P Risk Rating. Good ESG _ or low tends to achieve better financial performance. The finding that there is a statistically significant influence between ESG assessments and the economic success of general mining companies in Indonesia indicates that environmental, social and corporate governance factors have a measurable impact on the financial performance of these mining companies.

The Role of Economic Policies to Adopt Renewable Energy and Digital Technology on Business Decisions and HR Management in the Indonesian Mining Sector

The problem formulation that arises from this research is how the direct and indirect effects of renewable energy adoption variables and digital technology adoption affect the business decisions of mining companies in Indonesia with HR management variables as intervening variables. The subjects of this research are leaders in mining companies in Indonesia totaling 390 business units, where the variables in this study are independent variables, namely the adoption of renewable energy and the adoption of digital technology, while the dependent variable is the business decisions of mining companies in Indonesia, and the intervening variable is the HR management variable, where data analysis uses path analysis using Amos 22 software. The research method carried out is to use a quantitative descriptive approach by using data analysis with the path analysis method, where the results of data processing with the path analysis method are carried out with the Amos 22 application. From the results of this study, the conclusions that exist, namely partially the variable adoption of renewable energy and the variable adoption of digital technology, have a direct effect on the business decisions of mining companies in Indonesia. Renewable energy adoption variables partially also have a direct effect on HR management of mining companies in Indonesia, and HR management variables of mining companies in Indonesia have a direct effect on business decisions of mining companies in Indonesia. Simultaneously, the renewable energy adoption variable and the digital technology adoption variable indirectly affect the business decisions of mining companies in Indonesia through HR management as an intervening variable. With the process of adopting renewable energy and adopting digital technology, it will create changes to the business decision process carried out by the mining industry in Indonesia regarding HR management to become human resources capable of managing these changes. The government must carry out economic policies that support these changes, such as providing industrial incentives that are willing to change and adopt renewable energy and digital technology in order to compete and create products that are able to reduce the risk of climate change.

A Slight Look Environmental Disclosure Score Trends during Covid-19 Outbreak: What’s Driver the Environmental Disclosure in Indonesian Mining and Manufacturing Companies

Amid growing environmental challenges and economic development in developing countries, companies must adopt robust environmental disclosure practices to fulfil their corporate responsibility. This study examines environmental disclosure trends from 2020 to 2022 during the COVID-19 pandemic, specifically focusing on the environmentally sensitive manufacturing and mining sectors selected through purposive sampling. A total of 40 company samples, encompassing 120 units of analysis, underwent analysis involving descriptive statistics, classical assumption tests, and multiple linear regression. The research explores the connection between various variables, such as company size, age, profitability, leverage, share ownership, and audit committee composition, and their impact on environmental disclosure practices. The findings reveal a rising trend in environmental disclosure among manufacturing and mining companies during the COVID-19 and post-pandemic period, increasing from 53.2% in 2020 to 60.8% in 2022. In 2022, the energy, industrial, and health sectors saw increased environmental disclosure, while the basic materials and cyclical consumer sectors decreased. Regression analysis shows that company size, profitability, and audit committees impact environmental disclosure, while company age, leverage, and foreign ownership have no discernible influence. This research provides valuable insights into environmental disclosure in Indonesia's manufacturing and mining sectors.

Analysis of Environmental Social Governance (ESG) Impact Study on Local Cultural Wisdom: A Case Study at PT Bukit Asam Tanjungenim, South Sumatera, Indonesia

The implementation of Environmental Social Governance (ESG) in Indonesia is increasingly being implemented, including in the mining sector. PT Bukit Asam (PTBA) as one of the largest coal mining companies in Indonesia has implemented ESG in its operations. This research aims to analyze the impact of PTBA's ESG implementation on local cultural wisdom in the Tanjungenim area, South Sumatera. This research uses a qualitative method with a case study approach. Data collection was carried out through interviews with key informants, participant observation and documentation. Data were analyzed using qualitative data analysis techniques. The research results show that PTBA's ESG implementation has both positive and negative impacts on local cultural wisdom. The positive impacts include: (1) increasing public awareness about the importance of protecting the environment; (2) increasing community participation in decision making related to the environment; (3) improving the quality of life of the community through community empowerment programs. The negative impacts include: (1) changes in local cultural values due to external cultural influences; (2) the occurrence of social conflict between indigenous communities and companies; (3) loss of local traditions and culture due to modernization. In conclusion, PTBA's ESG implementation has positive and negative impacts on local cultural wisdom. Efforts need to be made to maximize the positive impacts and minimize the negative impacts.

Financial Modelling of Metal and Mineral Mining Companies in Indonesia using Altman Z-scores

Predictions about a company's financial condition related to bankruptcy are important information for interested parties, such as creditors, investors, government, auditors, and the company's internal management. This research models the financial condition of metal and mineral mining companies through the Altman Z-Score model and panel data regression analysis. This study focuses on a sample of nine companies involved in metal and mineral mining from 2017 to 2022. In this study, the Altman method was used to determine a company's health category using the Z-score standard. Panel Data Regression modelling showed that the fixed model was the best. The partial test results indicated that WCTA and RETA did not affect the Altman Z-score. However, when considering all the ratios simultaneously (WCTA, RETA, MVBV, and STA), they contribute to predicting a company's financial condition. These results highlight the importance of understanding the variables that influence a company's health and progress. Notably, the variables of WCTA, RETA, and STA play a crucial role in determining the Altman Z-score and contribute to our understanding of a company's financial condition.

The Influence of Company Size, Profitability, And Sales Growth on Capital Structure

This study investigates the impact of firm size, profitability, and sales growth on capital structure in the context of mining companies listed on the Indonesia Stock Exchange for the period of 2019-2022. The study aims to provide insights into the factors that influence the capital structure decisions of mining companies in Indonesia. The data used in this study is secondary data obtained from the official website of the Indonesia Stock Exchange, namely www.idx.co.id. The sample size for this research is 11 companies, selected using purposive sampling technique. The findings of the study reveal that firm size has a significant effect on capital structure, indicating that larger firms tend to have a higher level of debt in their capital structure. However, the study finds no significant relationship between profitability and sales growth with capital structure. These results suggest that mining companies in Indonesia may prioritize firm size when making capital structure decisions, while profitability and sales growth may not be significant factors in determining their capital structure. The implications of these findings are important for mining companies in Indonesia, as they provide insights into the factors that influence their capital structure decisions. By understanding the impact of firm size on capital structure, companies can make informed decisions about their debt financing and equity financing options. Additionally, the findings suggest that profitability and sales growth may not be significant factors in determining capital structure, which may help companies to focus on other factors when making capital structure decisions.

Exploring The Impact of Green Accounting and Corporate Social Responsibility Disclosure on Firm Value Through Profitability In Mining Companies In Indonesia

This study is dedicated to examining how the implementation of green accounting and the disclosure of corporate social responsibility impact the value of mining companies in Indonesia through profitability. Green accounting is a relatively novel area of research in Indonesia, particularly in the context of the mining sector. Given the ongoing governmental reforms in the mining industry, with the prohibition of raw material exports under Law Number 3 of 2020 amending Law Number 4 of 2009 on Mineral and Coal Mining, the study finds it intriguing to explore the implications of green accounting. The ban on nickel ore exports, as stipulated by the aforementioned legal amendments, sparked strong opposition from the European Union, leading to Indonesia being taken to the World Trade Organisation (WTO) in early 2021. This policy aligns with the broader objective of downstreaming, which seeks to secure a domestic supply of raw materials for mineral processing and refining, thereby mitigating adverse environmental effects. To initiate the research, the first step involves gathering data on pertinent variables from the financial statements of mining companies listed on the Indonesian Stock Exchange (IDX). Subsequently, SPSS will be employed to conduct tests and assess the influence of green accounting and corporate social responsibility disclosure on firm value, with profitability acting as a mediating factor.

Causality Analysis between ESG Performance and Financing Support

Recent global trends in electric vehicles (EV) triggered Indonesia to participate in battery industry development. Rich in geological resources, the government promotes various capital-intensive industries that process raw mining commodities, particularly limonite nickel ore, to support the EV industry in Indonesia. Inarguably, financial support is needed from various financial institutions and investors. On the contrary, the mining industry is closely related to environmental issues that attract the attention of financial institutions and investors. Therefore, understanding the relationship between “sustainability” and “financing activity” is essential, as it may not only practically guide the business to re-examine their environmental, social, and governance (ESG) initiatives but also extend the literature review on these matters. Therefore, this paper aims to describe the system through the Causal Loop Diagram (CLD) formed by ESG factors related to the financing process in mining companies in Indonesia. The research method used in this paper is developing causal loop diagrams from primary data and literature reviews. The CLD is constructed through a literature review and confirmed by an expert from the mining company. The result explains the causal loop between sustainability and financing. Improving ESG performance will increase financial support from global investors and financial institutions. To support practice and concept sustainability in Indonesia, the government should encourage mining companies to increase local partnerships and CSR Allocation as it will support the company's financing activity and trigger community improvement. Creating a supporting environment to attract global investors to finance the mining company in Indonesia is also necessary. Keywords: Causal Loop Diagram, ESG Performance, Financial Performance, Mining Industry, Sustainability JEL : M14, Q01, G32

What Factors Affecting Indonesian Mining Companies’ Stock Price Before and During the COVID-19 Pandemic

This study aims to analyze the factors influencing stock prices of mining sector companies listed on the Indonesian Stock Exchange before and during the COVID-19 pandemic. Panel data regression is utilized, with a sample of 39 mining companies selected through Purposive Sampling. Results indicate that, before the pandemic (2017–2019), company size significantly impacted stock prices, while liquidity, leverage, and profitability ratios did not. Conversely, during the pandemic (2020–2022), liquidity ratios and company size had a significant effect on stock prices, unlike leverage and profitability ratios. Throughout both periods, stock prices were significantly affected by liquidity, leverage, profitability, and company size. These findings provide insights for businesses to enhance productivity and financial sustainability, especially during economic instability like the pandemic. They also serve as indicators for investors regarding buying or selling shares, particularly in the mining sector. Additionally, the government can leverage these insights to optimize the mining sector, potentially boosting company revenues and supporting GDP growth.

The Moderating Role of Psychological Well-Being on The Relationship Between Psychological Capital and Job Satisfaction

There has been a lot of research on job satisfaction recently. Employees who are satisfied with their job will have an impact on their job performance. This study aimed to determine the moderating role of Psychological Well-Being on the relationship between Psychological Capital and Job Satisfaction. Participant in this study is 207 employees of an X coal mining company in Indonesia. The measuring tools used were Psychological Well Being Scale (Ryff et al., 1995), Psychological Capital Questionnaire (Luthans et al., 2007), and Michigan Organization Assessment Questionnaire Job Satisfaction Sub Scale (Camman, et al., 1979). The result of the analysis data show that there was a relationship between psychological capital and job satisfaction, and psychological well-being had no moderating effect on the relationship between psychological capital and job satisfaction.

Metode valuasi ekonomi dalam pengambilan kebijakan lingkungan di sektor pertambangan

The mining sector is a strategic pillar of national economic development. This sector provides a multiplier effect on people's lives but also has the potential for negative impacts on the environment. Economic valuation of natural resources and the environment is needed to determine the quantitative value of the goods and services produced. The purpose of writing this paper is to analyse the comparison of the use of economic valuation methods in environmental policymaking in the mining sector. Literature studies were carried out to look for references in the form of journals that were considered relevant to the purpose of the writing. Economic valuation methods such as cost-benefit analysis (CBA), real option valuation (ROV), and net present value (NPV) are crucial in the context of policymaking in the mining sector. These three methods can be used together or separately, depending on the context and characteristics of the project. The government and mining companies in Indonesia can utilise CBA for general policies, NPV for projects with a low level of uncertainty, and ROV for projects with a high level of uncertainty. The use of appropriate methods will provide a strong foundation for sustainable decision-making and support the development of an economically, environmentally, and socially responsible mining sector.

Peran Political dan Military Connections terhadap Pengungkapan Corporate Social Responsibility Perusahaan Pertambangan di Indonesia

This study investigates whether political connections and military connections influence the level of Corporate Social Responsibility (CSR) disclosure in mining companies in Indonesia. The study employs a quantitative method with the population in mining sector companies listed on the Indonesia Stock Exchange (IDX) from 2019 to 2021. The sample was selected using a purposive sampling method, totalling 102 samples from 34 mining sector companies listed on IDX for the 2019-2021 period. The data analysis techniques used panel data regression analysis with the EViews12 tools. The results show that political connections and military connections have a positive effect on CSR disclosure. Furthermore, this study used control variables, revealing that earnings management and financial performance don’t show a significant impact on CSR, while company size has a negative effect on CSR disclosure. The limitations of this study are associated with the sample size, which includes only mining companies in Indonesia and utilizes data from the past three years. During this period, the samples were under the influence of the COVID-19 pandemic. Therefore, for future study, it is necessary to expand the research time frame by involving a longer period. With an enhancement in CSR, it is also expected to contribute positively to financial performance. Keywords: Political Connection, Military Connection, Corporate Social Responsibility

The Future of Nickel Mining Industry – Study at PT VALE

Indonesia is the world’s largest producer of nickel. With the increasing global demand for nickel, it presents an opportunity for Indonesia to enhance its revenue potential through the export of nickel ore. Concurrently, the Government of the Republic of Indonesia has implemented policies to promote the downstream processing of nickel ore, thereby creating a multiplier effect on the country’s economy. PT VALE Indonesia stands as one of the largest nickel mining companies in Indonesia. The opportunity to process nickel ore holds the potential for added value and profits for PT VALE Indonesia. However, the production and sales of nickel by the company have experienced a decline over the years. This becomes intriguing as valuing the company requires forecasting nickel prices. This research analyzes the historical performance of PT VALE Indonesia and provides insights into potential further declines in performance, offering strategic steps as preventive measures for the company’s sustainability. Utilizing nickel price projections and pro forma methods, this research represents a form of company valuation study. Additionally, it sheds light for investors that, as of December 30, 2022, the company was undervalued by the market.

Modeling and Forecasting Closing Prices of some Coal Mining Companies in Indonesia by Using the VAR(3)-BEKK GARCH(1,1) Model

Today, coal is the main source of energy in both developed and developing countries. The use of coal fuel for power generation and industry continues to increase. This research will discuss the closing price relationship model for the share prices of two coal companies in Indonesia, namely ABM and IND_E, from January 2018 to July 2023. The modeling used is a multivariate time series approach. From the results of the data analysis, the best model that fits the data is the VAR(3)-BEKK GARCH(1,1). Based on this best model, further analysis of Granger causality, impulse response function (IRF), and forecasting for the next 30 periods as well as the proportion of prediction error covariance are discussed.

Analisa Produktivitas Excavator di Area PIT 2 Swakelola Tambang Banko Barat PT Bukit Asam, Tbk

A good coal mining process is assessed by productivity and efficiency. Productivity can also be increased by using heavy equipment accompanied by competent operators. As one of the largest coal mining companies in Indonesia, PT Bukit Asam, Tbk is required to always be at the best performance, including at the heavy equipment operator level. This research aims to determine the factors of heavy equipment use as assessed by cycle time on coal productivity. Productivity is limited to the overburden loading process by the Komatsu PC3000SE excavator at PIT 2 Swakelola Tambang Banko Barat. The greatest productivity obtained was 1099 m3 per hour and the average percent productivity was 79.4%. In this research, a match factor of 0.8 was also obtained as a basis for further research that needs to be carried out to optimize the overburden loading and dumping process for PT Bukit Asam

Analisis Harga Saham Perusahaan Pertambangan Batubara PT Bukit Asam Tbk dan PT. Aneka Tambang Tbk

The purpose of this research is to analyze the effect of falling coal reference unit prices in the world on the stock prices of coal mining companies in Indonesia, an analytical study of PT Bukit Asam Tbk. And PT Aneka Tambang Tbk. In this paper it is intended or useful to find out whether the fall in world coal prices has affected the stock prices of the two companies so that an investor can find out the condition of the company’s shares before and after the incident occurred. To get the results the author uses the event study method. Event study is research that observes the impact of an information announcement that affects the price of a company’s securities. Obtained from the use of non-parametric research methods, the wilcoxon signed rank test found that the company PT Bukit Asam Tbk. Not affected by this event, in another sense even though international (worldwide) coal prices are declining, even so this event does not affect the share price of this company’s coal mining company. However, it is inversely proportional to the Company PT Aneka Tambang Tbk. Because because of these events it was found that this company was affected by the consequences of these events.

Analisis Keuntungan Tak Terduga Yang Didapat Perusahaan Ekspor Tambang Batubara Di Indonesia Pada Periode 2020-2022

It will be a breath of fresh air for coal mining enterprises all around the world, including Indonesia, when global coal prices rise in 2021. This gain is referred to as a windfall profit since causes outside of the miner's control are what led to it. The COVID-19 epidemic, on the other hand, has led the Indonesian economy to contract, having an effect on output, exports, and the new wind in coal prices tied to the exchange rate. Due to this disparity, investigation was done to see if the unexpected earnings that Indonesian mining firms experienced were liable to reserve tax. The approach of literature study or literature review was employed in this study. This study will demonstrate that the application of windfall tax to coal exports is effective by looking at the situation of coal mining companies in Indonesia, the application of windfall tax in other nations, and taking into account the coal company tax regulations that apply in Indonesia. It may be used to generate cash for the government and supply domestic coal as feedstock for automated stabilizers. Additionally, it will have an impact on coal export prices and output between 2020 and 2022. Based on this research, a temporary sasaraned supplementary income tax for short-term goals and a permanent tax for long-term goals can be imposed.

Analysis of the Effect of Return on Assets (ROA) and Current Ratio (CR), on Stock Prices with Earnings Per Share (EPS) as a Moderation Variable (On the Mining Sector on the IDX 2020- 2022)

In the investment world, investment decisions are important in determining future investment success. In capital market activities, stock prices are a very important factor and need to be considered by investors because stock prices show the performance of the issuer. One of them is a mining company in Indonesia. The stock price also shows the value of the company, with the higher the stock price of a company, the higher the value of the company and vice versa. Return On Assets (ROA) is a ratio of profitability that shows the result (return) on the total assets used in the Company. The current ratio (CR) is a liquidity ratio that compares the company's current assets with the company's current liabilities. Earnings per share (EPS) is an important indicator in fundamental stock analysis, which describes how much profit a company generates for each share owned by an investor. This study uses regression analysis which aims to determine the effect of variable performance, at least in terms of ROA, does not affect the value of the company's shares in the time period studied. The Current Ratio (CR) also does not affect the share price of mining companies on the Indonesia Stock Exchange in the 2020–2022 period. This means that the company's liquidity level as measured by CR does not significantly affect the company's share price in the market. In the mining industry listed on the Indonesia Stock Exchange in the 2020–2022 period, earnings per share (EPS) does not affect the effect of Return On Assets (ROA) on stock prices. In other words, a change in a company's EPS does not change how ROA affects its share price. Earning Per Share (EPS) is also not able to moderate the influence of the Current Ratio (CR) on share prices in the mining industry which are listed on the Indonesia Stock Exchange in the 2020–2022 period. This means that a change in a company's EPS does not change the way CR affects the company's stock price.