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The Impact of Coal Contract of Work (CCoW) Amendment on Mining Companies' Financial Performance: A Case Study of Indonesian Mining Companies

机译:煤炭工作合同(CCOW)修正案对矿业公司财务业绩的影响 - 以印度尼西亚矿业公司为例

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The Government of Indonesia issued Law No. 4 of 2009 concerning Mineral and Coal Mining (Undang-Undang Nomor 4 Tahun 2009 tentang Pertambangan Mineral dan Batubara - UU Minerba) on 12 January 2009. This new mining law is to overrule the Law No. 11 of 1967 concerning Basic Provisions on Mining which was considered no longer compatible with the development of mining practices, both domestically or internationally. Article No. 169 of the new law cites that any existing Coal Contract of Work (CCoW) has to be in conformity with the new mining regulation within one year after UU Minerba is released. Accordingly, the Indonesian Government then called Indonesian coal mining companies operating under CCoW concession to amend their CCoW. At the beginning, the coal mining industry was not in favor of the CCoW amendment because it would change their underlying regulations for mining operations. It impacts their CCoW in 6 strategic issues: 1st. License for mining operation, 2nd. Domestic processing obligation, 3rd. Domestic purchase obligation for material and services, 4. Divestment obligation, 5th. Size of area concession, 6. State revenue. The CCoW amendment can create adverse impacts on Indonesian coal mining companies such as losing some privileges, damaging financial performance and creating uncertainty to their return to long investment. Therefore, presumption in the coal mining industry is that amendment CCoW has an unfavourable impact on their financial performance. These circumstances have been dragging the renegotiation of CCoW amendment since 2019 until end of 2017 and just enacted effectively since 1st January 2018. This research is to determine whether CCoW amendment has an unfavourable impact on Indonesian coal mining companies' financial performance.
机译:印度尼西亚政府于2009年1月12日发布了2009年关于矿产和煤炭矿业的第4号法律(Undang-Undang RomoR 4 Tahun 2009 Tahun 2009年1月12日)。这项新的采矿法是否决第11号法律1967年关于采矿的基本规定,被认为不再与在国内或国际上的采矿实践的发展不再兼容。 “新法律”第169条引用了任何现有的工作煤炭合同(CCOW)必须符合UU Minerba释放后一年内的新采矿法规。因此,印度尼西亚政府随后称印度尼西亚煤炭挖掘公司在CCOW特许权下运营,修改其CCO。在开始时,煤矿产业并未有利于CCOW修正案,因为它将改变其采矿业务的基础规定。它在6个战略问题中影响了他们的CCOW:1。采矿业务许可证,第二次。国内加工义务,3。物料和服务国内购买义务,4.撤资义务,5。区域特许权的大小,6.国家收入。 CCOW修正案可以对印度尼西亚煤炭矿业公司产生不利影响,如失去一些特权,损害财务表现,并创造不确定的恢复延长投资。因此,煤矿业的推定是修正案CCOW对其财务业绩产生了不利影响。这些情况自2019年以来拖累了CCOW修订的重新协商,直到2017年底,自2018年1月1日起刚刚有效颁布。该研究是确定CCOW修正案是否对印度尼西亚煤炭矿业公司的财务业绩有所影响。

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