Indonesian Mining Research Articles

Indonesian National Tin Production Planning: Conceptual Framework

Tin mining in Indonesia has been regulated by Indonesia Law Number 3 of 2020. However, it has not been fully utilized in Indonesia despite the country's abundant tin deposit opportunities, its position as one of the significant producers of tin globally, and the impact on both the global tin stock and price. In light of this, a comprehensive literature review has been carried out; an initial conceptual framework and causal loop diagram of Indonesia’s national tin production planning have been produced to produce the concept of an instrument for setting national tin production quotas and the concept of formulating the distribution of national tin production levels that could be a reference for future researchers as well as Government of Indonesia in order to find the national tin production planning.

Revitalizing PT. Sindo Energy (SE): A Forward-Thinking Proposed Scenario Planning to Navigate Coal-Regulatory Changes and Ensure Sustainability

Coal is a valuable natural resource that belongs to the Indonesian state and serves as a crucial raw material for fulfilling the country’s primary energy requirements. Starting from 2022, the Government has made a formal declaration to attain Net Zero Emissions (NZE) by the year 2060. Presidential Decree no. 112 of 2022 has been issued to expedite the development of renewable energy for electricity supply. One of the consequences of this decree is the discontinuation of coal-based power plants, reflecting the government’s dedication to transitioning to alternative energy sources in the future. Sindo Energy (SE) is a mining contractor services company that operates under the Indonesia Mining Alliances (IMA). It specializes in the coal industry and has a significant market share, contributing to a Gross Profit Margin of 93.43%. Naturally, projects that collaborate with SE are firms that own coal and so have the power to influence the overall business operations. This study aims to offer a comprehensive and enduring perspective on the potential future occurrences of scenario planning. The fundamental basis for creating the four scenarios, namely Believing Spirit (BS), Pioneer of Changes (PC), Truly Fighter (TF), and Chameleon Specialist (CS), involves identifying the major focal issues, driving reasons, and sources of uncertainty. This research outlines four scenarios that depict the projected industrial conditions in 2040. Each scenario presents different ramifications and possibilities, as outlined in the study. This research also generates pre-emptive indicators for SE business, which will subsequently prove valuable for corporations in formulating strategic measures that the company can adopt to confront potential situations in the face of future uncertainty, via implementation plans spanning a minimum of 15 years, in the upcoming year.

Kajian Yuridis Kebijakan Pengelolaan Tambang di Wilayah Kabupaten Situbondo Ditinjau Berdasarkan Undang-Undang Nomor 3 Tahun 2020 tentang Pertambangan Mineral dan Batubara

This research was conducted to find out how mining management policies are reviewed based on Law Number 3 of 2020 concerning mineral and coal mining. In this research, the method used is normative juridical which focuses on the application of rules or norms in positive law to raise, discuss and explain the legal issues raised. Mining is some or all stages of activities in the context of research, management and exploitation of minerals or coal which includes general investigations, exploration, feasibility studies, construction, mining, processing and refining, transportation and sales, as well as post-mining activities. Mining is an activity carried out either simply (manually) or mechanically which includes preparation for scattering, loading and transporting excavated materials. Excavated goods contained in the Indonesian mining jurisdiction are national wealth which is a gift from God in the form of natural deposits.

Reclamation Responsibility for Illegal Mining in Indonesia: how should it be?

Abstract Illegal mining is one of the problems in natural resource management in Indonesia. The enactment of Law Number 3 of 2020 concerning the Amendment to Law Number 4/2009 concerning Mineral and Coal Mining (UU No. 4/2009) further strengthens the concept of ecosystem protection, one of which is through reclamation and post-mining obligations. However, in the current law, there is confusion regarding the assignment of reclamation responsibility. The purpose of this paper is to examine how the concept of legal responsibility for illegal mining, and provide justification or consideration of the urgency of reclamation responsibility for illegal mining. This research employed a normative method and statutory, case, and conceptual approaches. The results of the study indicate that there is a legal vacuum in the current mining regulations regarding reclamation responsibility for illegal mining. The concept of responsibility for reclamation in Law no. 3/2020 is only charged to legal mining but does not cover illegal mining, causing many mine pits to be left unattended, and this situation has claimed many lives. Parties involved in Illegal mining in Indonesia should not only be burdened with liability but also environmental obligations or responsibilities in the form of reclamation and post-mining from illegal mining activities carried out. The first thing that can be done by the Government is to amend Law No. 3/2020 by expanding the concept of recovery responsibility to ensure that it can cover illegal mining. The imposition of reclamation responsibility for illegal mining is expected to provide maximum recovery for the ecosystem around the former mine. Abstrak Pertambangan ilegal merupakan salah satu masalah dalam pengelolaan sumber daya alam di Indonesia. Lahirnya Undang-Undang Nomor 3 Tahun 2020 tentang Perubahan Atas Undang- Pertambangan Mineral dan Batubara sebelumnya (UU No. 4/2009) semakin memperkuat konsep perlindungan ekosistem salah satunya melalui kewajiban reklamasi dan pasca tambang. Akan tetapi, dalam aturan hukum saat ini terdapat kerancuan mengenai pembebanan tanggung jawab reklamasi. Tujuan penulisan ini adalah untuk mengkaji bagaimana konsep pertanggungjawaban hukum pertambangan ilegal, dan memberikan justifikasi atau pertimbangan urgensi tanggung jawab reklamasi untuk pertambangan ilegal. Metode penelitian dalam penelitian ini adalah penelitian normatif dengan pendekatan perundang-undangan, pendekatan kasus, dan konseptual. Hasil penelitian menunjukkan bahwa terdapat kekosongan hukum (legal vacuum) dalam aturan pertambangan saat ini mengenai tanggung jawab reklamasi bagi pertambangan ilegal. Konsep tanggung jawab reklamasi dalam UU No. 3/2020 hanya dibebankan kepada pertambangan legal namun tidak menjangkau pertambangan ilegal. Hal ini menyebabkan banyak lubang tambang yang dibiarkan yang merenggut banyak korban jiwa. Pelaku pertambangan ilegal di Indonesia seharusnya tidak hanya dibebani tanggung jawab pidana, melainkan kewajiban atau tanggung jawab lingkungan dalam bentuk reklamasi dan pasca tambang dari kegiatan tambang ilegal yang dilakukan. Hal pertama yang dapat dilakukan oleh Pemerintah adalah melakukan perubahan terhadap UU No. 3/2020 dengan memperluas konsep tanggung jawab pemulihan sehingga dapat juga menjangkau pertambangan ilegal. Pembebanan tanggung jawab reklamasi bagi pertambangan ilegal ini diharapkan dapat memberikan pemulihan yang maksimal bagi ekosistem sekitar bekas tambang.

KONSERVATISME AKUNTANSI, STRUKTUR MODAL, INTENSITAS ASET TETATP, DAN TRANSFER PRICING, PENGARUHNYA TERHADAP TAX AVOIDANCE

The study's focus is on identifying the many elements that lead to tax evasion, including but not limited to accounting conservatism, capital structure, the value of fixed assets, and transfer pricing. Tax avoidance refers to the strategies used by businesses and people to minimize their tax obligations. This study focuses on Indonesian mining firms that had an IPO between 2015 and 2022 on the Indonesia Stock Exchange. Thirteen companies were selected as study samples after meeting selection criteria and using a purposive random sampling method. This study used multiple linear regression as its analytic tool. The results suggest that capital structure and transfer pricing play key roles in evading taxation. While the number of fixed assets and the degree of accounting conservatism have only a little role in facilitating tax avoidance

Profitability, Liquidity, and Financial Performance: Implications for Company Value in Indonesia’s Mining Industry


 This research explores the interplay between profitability, liquidity, financial performance, and company value in Indonesia's mining industry. quantitative approach is employed, utilizing path analysis to examine complex relationships and understand how these variables collectively influence the mining companies' value in Indonesia. The study targets 40 mining companies from a population of 73, using purposive sampling based on the completeness of financial statements from 2018 to 2022.Results from the path analysis are discussed, revealing positive and significant effects of liquidity on financial performance and company value. Profitability also demonstrates a positive impact on both financial performance and company value. The findings align with previous research and contribute to a comprehensive understanding of the financial landscape of Indonesia's mining industry. The study's implications extend to investors, companies, and regulatory policies, emphasizing the importance of considering liquidity and profitability in strategic planning and decision-making. In conclusion, the research provides valuable insights for stakeholders in the Indonesian mining industry, emphasizing the interconnectedness of liquidity, profitability, financial performance, and company value. These findings contribute to informed decision-making and risk management in the dynamic and volatile environment of the mining sector.

Pancasila Ideology in Challenges of Globalization on Mineral and Coal Law in Indonesia

Objective: Globalization has a great influence on the legal system of a country, including the mining legal system. In Indonesia, Pancasila can be considered the legal basis and the source of all laws. This study aims to analyze Pancasila as a Source of Law to answer the Challenges of Globalization related to Mineral and Coal Mining Laws in Indonesia. Method: The research method used is doctrinal law. The Statute Approach examines all laws and regulations relating to legal matter. Data was collected by studying literature and conducting direct interviews with informants. Result: Generally, the legal development of mineral and coal mining in Indonesia is based on Pancasila. Mining activities must be distinct from foreign investment activities. Regarding investment, the principles of international foreign investment conventions are not under Pancasila. Conclusion: Pancasila, as the nation's basic philosophy, is open without the need to change its fundamental values to be maintained following existing developments. Thus, even though Pancasila may not be in harmony with the legal principles of international investment, as long as the executive, legislative and judicial institutions are based on Pancasila in carrying out their duties, then in the future other ideologies cannot influence Pancasila ideology.

Juridical Review of Coal as an Object of Fiduciary Collateral in Banking Credit Agreements (Study of the Decision of Pt Anzawara Satria V. PT Bank Artha Graha Internasional TBK)

Mining activity is a capital-intensive industry that requires enormous cost. In supporting financing in mining activities, one of the sources is through a bank credit facility. With a series of mining activities that are quite complex, there is a high risk of financing from mining activities, one of which is the risk of non-performing loans. In anticipating these risks, banking institutions in practice have implemented the prudential principle through the implementation of 5C, one of which is guarantee (collateral). Based on Judicial Decision Number 714/ PDT /2016/ PT.DKI between PT Anzawara Satria against PT Bank Artha Graha Internasional, Tbk., PT Anzawara Satria as a mining company has provided guarantees in the form of coal supplies to PT Bank Artha Graha International Tbk. This research will review the material properties of coal as bank guarantees and analyse the position of coal as collateral based on Indonesian Mining Law. This research uses a normative juridical method with sources from secondary data, namely: (1) primary data materials in the form of relevant laws and regulations; (2) secondary data material, which includes books, journals, articles, or other related sources. This research resulted that, first, based on the nature of coal, coal may be guaranteed by fiduciary and pledge. Second, based on mining law in Indonesia, coal may be guaranteed with the condition that mining business actors are required to pay production fees (royalties) as a form of transfer of ownership rights from the state to business actors

A Mining Theme Park—Cultural Competition and the Politics of Identity Claims in an Indonesian Mining Town

The Wallacea–Sawerigading Mining Park (Taman Tambang Wallacea Sawerigading) in the mining town of Sorowako in Sulawesi, Indonesia, has been created by the mining company whose operations dominate the landscape and the local economy. The theme park juxtaposes the distinctive flora and fauna, and the pre-colonial history of the region, with the modern mining operations, creating a thematic stamp for regional identity. This article discusses the park and related tourism and leisure activities to illuminate processes of identity formation and identity-based competition in this cosmopolitan town. The voices of the original inhabitants (the orang asli Sorowako—autochthonous people of Sorowako), who have deployed their resistance identity in articulating rights claims, today are in competition with multiple foci of identity-making—from the mining company, governments, and migrants to the mining region. The paper draws on the author’s long-term research (from 1977 to now) following the social transformations associated with the mine.

Analysis of ERP Critical Failure Factors: A Case Study in an Indonesian Mining Company

ERP is a useful application for companies to run day-to-day operations by automating business processes, but the complexity and difficulty of deploying ERP systems causes unanticipated implementation failures. Around 70% of ERP implementation fails to produce expected benefits, and three quarters of these projects fail. This study aims to uncover potential reasons that cause the failure of ERP system adoption using Company XYZ, a mining company as the case. A questionnaire was distributed to its management and employees. TOPSIS approach was used to rank the variables according to their significance in affecting failure of ERP systems implementation. The findings revealed that the two most important critical failure causes for ERP implementation are bad understanding of organization’s business processes and poor business process reengineering. The company needs to conduct a deeper analysis of the existing business processes in the business unit to be able to determine more appropriate business process reengineering for ERP implementation in the future. Companies and academics can utilize the study's findings as a helpful resource to identify the cause of ERP implementations failure

Integrating Environmental, Social and Governance (ESG) Disclosure on Financial Performance of Indonesian Mining Industry Sector

Integrating Environmental, Social and Governance (ESG) Disclosure on Financial Performance of Indonesian Mining Industry Sector

Responsive Law Enforcement in Preventing and Eradicating Illegal Mining in Indonesia

Purpose: The objective of this study is to assess and appraise the efficacy of responsive law enforcement in the context of preventing and eliminating illegal mining activities in Indonesia.
 
 Theoretical Framework: The mining industry plays a significant role in contributing to the national income. However, it is vital to acknowledge that mining activities can also have adverse effects on the environment, natural resource conservation, and even the overall economy of a country. One of the mining enterprises that can potentially give rise to these issues is unauthorized mining.
 
 Methods: Illegal mining is a transgressive activity that encompasses the essential components of a penal offense, hence necessitating the involvement of law enforcement agencies to safeguard the long-term viability of development in Indonesia. This study employs the Normative Research Method, specifically utilizing library materials as primary data sources in the science field. These materials are categorized as secondary data, and the research approach adopted is library research.
 
 Results: The findings of this study demonstrate the significant ramifications of illicit mining activities in Indonesia across three primary dimensions: economic, environmental, and social. The economic impact includes loss of state revenue and unfairness in business competition. Environmental impacts include ecosystem degradation, water and soil pollution, and threats to biodiversity.
 
 Conclusions: To overcome this problem, a responsive law enforcement approach is needed, including community involvement, flexibility in handling situations, prevention and education, transparency, collaboration, and adequate sanctions. With collaboration between government, communities, and stakeholders, Indonesia can achieve sustainable and equitable development while tackling illegal mining.

Rancang Bangun Alat Pengisian Laddle Nikel Matte Otomatis dengan Sensor HC- SR 04 dan Buzzer Menggunakan Mikrokontroller Atmega

As we already know that the majority of work accidents in mining in Indonesia are fatal. Advances in technology and shifting work practices can increase the number of work accidents due to a lack of understanding of workers at work locations. As a result, we need tools that can reduce the number of work accidents and the number of deaths due to work accidents. Microcontrollers are now very widely used because they are very useful and very helpful in solving problems. Microcontrollers are widely used in everyday life, for example traffic lights. Therefore, the author has the idea to create an automatic tool based on the Atmega microcontroller using the Research and Development (R&D) method. The design of this tool uses the Arduino Atmega microcontroller as a controller and the HC-SR04 sensor to detect the fill level in the laddle and a servo motor to open and close the filling valve. With this tool, it can overcome the problems of the mining industry in the form of human labor in very dangerous areas in the mining industry. The results of this study are that this tool is capable of filling, lifting, carrying and pouring matte nickel laddles automatically.

Correlation Study between Debt-Equity Ratio and Asset Returns with Relative Market Value to Book Value in the Indonesian Mining Industry (2020-2022)

This research aims to analyze the influence of Debt to Equity Ratio and Return on Asset on Price to Book Value within the Indonesian mining industry for the years 2020-2022. Utilizing a quantitative methodology and an associative approach, the study was carried out from April to June 2023. From a population of 80 mining companies listed on the Indonesia Stock Exchange, 25 were selected as samples through purposive sampling Findings suggest that the Debt to Equity Ratio does not significantly impact Price to Book Value. However, Return on Asset has a notable influence. Additionally, both variables collectively have an effect on Price to Book Value.

How liquidity, profitability, and leverage ratios influence financial distress: A study on Indonesian mining firms

This study investigates the impact of liquidity, profitability, and leverage ratios on financial distress in mining companies listed on the Indonesia Stock Exchange. It posits that higher liquidity in a company correlates with reduced financial distress. The research encompasses eight mining companies observed from 2016 to 2020. Purposive sampling was employed to select a sample of eight companies meeting specific criteria. The study utilizes multiple linear regression analysis as its analytical approach. The findings, significant at the 5% level, reveal that liquidity, profitability, and leverage ratios collectively exert a substantial influence on financial distress, accounting for 85.3% of the variance in the dependent variable. Specifically, the study concludes that: 1) Liquidity has a significant negative effect on financial distress, 2) Profitability also demonstrates a significant negative impact on financial distress, and 3) Leverage exhibits a significant positive effect on financial distress.

THE EFFECT OF TAX BURDEN, FOREIGN OWNERSHIP, INTANGIBLE ASSETS AND BONUS MECHANISM ON TRANSFER PRICING

In Indonesia, a country with a significant mining industry and a dynamic stock exchange, transfer pricing decisions among mining companies have become a subject of interest. These decisions involve determining the prices at which related entities within the same multinational corporation trade with each other. The complexity arises from the potential discrepancies between market prices and the prices set for intra-company transactions. This study aims to investigate the impact of Tax Burden, Foreign Ownership, Intangible Assets, and Bonus Mechanism on Transfer Pricing Decisions among Indonesian mining firms listed on the Stock Exchange from 2017 to 2021. Using purposive sampling, six mining companies were selected as the research sample. Employing Panel Data Regression Analysis via Eviews 9 software at a 5% significance level, the study finds that collectively, the independent variables significantly influence companies' choices for transfer pricing, as indicated by the F-test (F-statistic value = 13.07910, F-table value = 2.759). Regarding individual variables, Tax Burden lacks significant influence (p-value = 0.3819), while Foreign Ownership negatively impacts transfer pricing decisions (p-value = 0.002, t-statistic = -3.503829). Intangible Assets (p-value = 0.8969) and Bonus Mechanism (p-value = 0.6290) also do not significantly influence transfer pricing. The study concludes that investors should cautiously analyze company policies due to varied motivations for transfer pricing, and recommends government review of policies to curb detrimental transfer pricing practices. The limited number of multinational mining companies and scarce information on their transfer pricing practices are study limitations.

Community’s Motivation to Carry out Illegal Oil Mining In-Indonesia

Objective: This article intends to investigate in depth the justifications for illicit oil mining in Aceh. The information used in this article’s analysis was gathered through observation, interviews, and documentation studies. Theoretical framework: Despite the dangers associated with illegal mining, the primary motivation is the simplicity with which the community’s illegal oil mining operations may generate surplus revenues. Method: The type of research method taken is mixed method research. This research is a research step that combines two previously existing types of research, namely qualitative research and quantitative research. The following will describe and explain the meaning of quantitative. Results and Conclusions: Based on an analysis of the available data, the conclusions of this article demonstrate that the primary motivator and reason for people to engage in illegal activities under the law is the ease of obtaining multiple profits. Implications of the research: This article demonstrates that the community generally understands the motivation behind engaging in risky and illegal mining. Despite numerous potential risks, including life-threatening ones, that continue to be present, their desire to engage in their activities is unaffected by these alarming risks. Originality/value: The discussion in this article is restricted to looking at issues related to the primary reasons why people engage in illegal activity and the effects of those activities. It indicates that many gaps still need to be filled, particularly in the state’s efforts to raise people’s awareness so they will not engage in illegal activity in the future.

The Influence of Corporate Social Responsibility Disclosure and Capital Structure on Earning Response Coefficient of Indonesian Mining Companies

This study aims to examine the influence of CSR disclosure and capital structure on ERC (Earning Response Coefficient) in mining companies listed on the Indonesia Stock Exchange (BEI) in the year 2018 – 2021. The result of the study will add findings regarding this topic for Indonesian mining companies which includes the period of pandemics. This research utilizes multiple linear regression using SPSS version 29 program. The findings of this study indicate that CSR disclosure has a significant negative influence on ERC. Meanwhile, capital structure does not have an impact on ERC.

Implementation of the Pertamina Niaga Terminal Dumai CSR through a Community-Based Mangrove Tourism Program (Study on Tourism Awareness Groups)

The problem in Indonesia that until now has become a topic of conversation is the issue of environmental damage. The existence of the issue of environmental damage due to low public awareness of the potential that exists in the area. One of the causes of the issue of environmental damage, namely mining in Indonesia is increasing from year to year. The presence of CSR PT Pertamina IT Dumai gives its social responsibility to the community to help develop mangrove ecotourism in Dumai Riau. Through programs, assistance, and infrastructure assistance. Pertamina Niaga CSR (Corporate Social Responsibility) IT Dumai provides assistance in the process of developing mangrove tourism to make it more optimal. The role of CSR (Corporate Social Responsibility) Pertamina IT Dumai chose this location because of the potential of mangrove plants which have many functions, one of which is the prevention of natural disasters. For this reason, the establishment of Mangrove Ecotourism aims to exploit the potential of mangrove forests to increase the economic value of the local community. Through the development of ecotourism. The Mangrove Ecotourism Development Program also helps create new jobs for people in the area through the POKDARWIS (Tourism Awareness Group) community. The group is supported by Pertamina IT Dumai CSR and is provided with infrastructural facilities, assistance. The goal is that mangrove ecotourism can develop and be known by foreign circles.

Corporate Social Responsibility Disclosure and Profitabilitas: Evidance From Indonesian Mining Companies

In non-mining companies, CSR patterns are numerous in the form of social assistance, scholarships, or the development of city facilities. However, for mining companies, the concept of CSR is patterned back to a time, namely the concept of renewal or natural care. This type of research is both descriptive and quantitative, and the method used for linear regression is simple. A sample of six mining companies with a total of 30 financial statements Mining companies in Indonesia. The result of the hypothesis means that Ho is accepted and Ha is rejected; that is, CSR disclosure has no effect on the return on assets. The results of the coefficient of determination analysis (R square of 14.4%) show that CSR disclosure contributes to the return on assets with a contribution of 14.4%. The organization manages its legitimacy according to the type of its social contract with society. Another factor for CSR disclosures to mining companies in Indonesia is the presence of political costs. Another form of contract fees that can be explained is the attitude of managers towards disclosure of information.