Empowering Communities to Reduce Dependence on Unlicensed Mining and Minimize Corporate Losses: A Case Study of PTBA in December 2023
Journal Title: Journal of Economics, Finance and Management Studies - Year 2024, Vol 7, Issue 10
Abstract
This study aims to analyze the impact of community empowerment programs on reducing dependence on unlicensed mining and to measure the potential losses incurred by PTBA due to these activities. The time sample used in this research is December 2023. A quantitative approach is used to calculate the income earned by the community from six empowerment programs, including bamboo downstream processing, snakehead fish farming, reclamation plant cultivation, maggot farming, quail farming, and eel farming. The total income generated by these programs for 93 beneficiaries reached USD 13,238.22 per month, with an average income per program ranging from USD 153.70 to USD 244.39, which remains below the regional minimum wage (UMR) of Muara Enim Regency, set at USD 233 per month. This income is compared to assess how competitive the alternative livelihoods provided by the empowerment programs are. In addition, this study calculates PTBA’s losses from unlicensed mining in the same month, based on the extraction of 0.175 million tons of coal, the market price of USD 58.28 per ton, and the lost royalties of 8%. The total financial loss reached USD 10.2 million, with USD 815,920 in lost royalties. The analysis underscores the importance of expanding and strengthening community empowerment programs to further reduce unlicensed mining activities, while also mitigating the financial and environmental impacts on the company.
Authors and Affiliations
Nugroho Rinadi Pamungkas , Mukhammad Fatkhullah , Ajeng Biantari,
Keywords
Related Articles
- EP ID EP747066
- DOI 10.47191/jefms/v7-i10-07
- Views 4
- Downloads 0
Greening Innovation: A Roadmap for Sustainable Product Development
In the midst of unprecedented technological advancements and rapid industrialization, the imperative for sustainability has emerged as a paramount challenge. This article explores the realm of sustainable product develop...
Climate Impact and Corporate Communication: The European and Italian Situation and the Issb Proposal Outlined in Exposure Drafs S2 Climate-Related Disclosure - 29 March 2022
On 29 March 2022, the International Sustainability Standard Board (ISSB), an emanation of the IASB, issued two Exposure Drafts: IFRS S1 General Requirement for Disclosure of Sustainability-related Financial Information a...
Navigating Tradition and Ethics: Consumer Perceptions of Luxury Brands Using Animal Products
This study investigates the complex relationships between consumer perceptions, brand equity, and customer loyalty in the context of luxury brands using animal products in Northern Vietnam. Employing a quantitative appro...
Supervision of BPD, Competence of Government Apparatus, Against-Asset Management-and Village Fund Allocation with Internal-Control System
This study aims to test and evaluate empirically the effect of Asset Processing and Village Fund Allocation through the Village Consultative Body Supervision Function, Information Technology Utilization, and Village Gove...
The Effect of Tiktok Live Streaming on Consumer Purchase Intention and Gift Giving Intention on Slinkywhite Collagen Drink Products
E-commerce live streaming is a form of business model that sells goods or services directly to consumers through live broadcasts on e-commerce platforms or social media. This study aims to examine the effect of e-commerc...