HOW A DOMESTIC MARKET OBLIGATION POLICY AFFECTING THE COMPANY FINANCIAL PERFORMANCE: CASE STUDY OF COAL MINING INDUSTRY IN INDONESIA
Indonesia has a great potential in natural resources in term of coal resources. The average ratio of the nation’s coal production being exported from 2000 to 2014 is 75.4%. With a high ratio of national coal production being exported rather than for domestic market, Indonesia is currently leading the global coal exporters with a total contribution to global coal exports of 28.59%. In March 2018 the government are issuing the DMO price policy written in Government Regulation No. 8/2018 and Ministry of Energy and Mineral Resources Regulation No. 19/2018 related to guidance of the determination of the coal price for electricity that is supplied in the public interest protect domestic market needs. This research aims to obtain empirical evidence about the differential in the financial performance of Indonesian Public Listed Coal Companies before and after the Domestic Market Obligation price policy issuance represented with Return on Assets ratio. This research will be using 17 Indonesian Public Listed Coal Companies and using difference-in-difference method with Return on Asset ratio using 2 period of event window which was 2 quarter before and after the regulation was issued. To validate the result from difference-in-difference analysis, this research will be analyzed with Wilcoxon Signed Rank Test. The analysis indicates that the short term effect of the Domestic Market Obligation price policy issued by the government did not give a significant impact towards the financial performance of Indonesian Public Listed Coal Companies represented with Return on Assets ratio.
Keywords: Financial Performance; Coal Industry; Profitability Ratio; Difference-in-Difference
Bappenas. (2016). Laporan Akhir Kajian Ketercapaian Target DMO Batubara Sebesar 60% Produksi Nasional Pada Tahun 2019. Direktorat Sumber Daya Energi, Mineral dan Pertambangan . Jakarta: Bappenas .
Republik Indonesia. (2018). Keputusan Menteri Energi dan Sumber Daya Mineral Republik Indonesia Nomor 1395K/30/MEM/2018 . Menteri Energi dan Sumber Daya Mineral . Jakarta: Menteri Energi dan Sumber Daya Mineral .
Tim Komunikasi ESDM. (2018, September 1). Kementerian Energi dan Sumber Daya Mineral Republik Indonesia . Retrieved March 19, 2019, from Kementerian Energi dan Sumber Daya Mineral Republik Indonesia : https://www.esdm.go.id/id/media-center/arsip-berita/rekonsiliasi-data-sumber-daya-batubara-indonesia-kini-166-miliar-ton-cadangan-37-miliar-ton
Kementerian Energi dan Sumber Daya Mineral . (2015). Handbook of Energy & Economic Statistics of Indonesia . Jakarta: Kementerian Energi dan Sumber Daya Mineral .
The Global Economy. (2016). Coal Exports by Country, Around The World. Retrieved March 21, 2019, from The Global Economy : https://www.theglobaleconomy.com/rankings/coal_exports/
Ebaid, I. E.-s. (2009 ). The Impact of Capital Structure Choice on Firm Performance. The Journal of Risk Finance .
Munawir. (2007). Analisis Laporan Keuangan. Jakarta: Liberty.
Lechner, M. (2011). The Estimation of Causal Effects by Difference-in-Difference Methods. Foundations and Trends in Econometrics .
British Petroleum . (2018). BP Statistical Review of World Energy . British Petroleum .
Investopedia. (2019, April 24). Investopedia. Retrieved May 13, 2019, from Investopedia Web site: https://www.investopedia.com/terms/p/profitabilityratios.asp
Sean C Anderson, A. B.‐C. (2017, January). Improving Estimates of Population Status and Trend With Superensemble Models . Wiley .
Sanjiv Jaggia, A. K. (2013). Business Statistics: Communicating with Numbers . New York : McGraw-Hill/Irwin.
- There are currently no refbacks.