| In the last fifteen years, Indonesian coal production has increased rapidly. Most of the production came from mines operated by private companies. The success of the Indonesian government in attracting investors, both domestic and foreign, was accomplished by improving legal aspects and facilities favorable to investment in the coal mining industry to add to economic coal reserves. The participation of private companies was based on their belief that coal investment in Indonesia was profitable over a long period. Indonesia has advantages over other areas due to its geological potential, political environment, marketing potential, mineral sector regulation, fiscal regime. monetary control. environment protection, local services and labor market.; The majority of current coal production, mostly exported, was produced in the East and South Kalimantan mining region. This region plays a dominant role in the Indonesian coal mining industry for the present and into the future.; Productivity of coal mining operations is influenced by various input factors. The goal of this study is to identify the relevant input factors that are associated with variations in coal production in the Kalimantan mining region. The relevant input factors that determine coal production are coal price and costs of production. The costs of production are divided into six categories: Labor Cost, Maintenance and Supply Cost, Capital Cost, Production Sharing and Taxes (cost paid for royalty and taxes), Field Cost (cost paid for overburden removal and coal mining activities), and Other Operational Costs (cost paid for financial and general office activities). Data from 1993 to 1996 for the existing coal mining operations in Kalimantan were used to establish and examine the relationships between the cost of relevant input factors and coal production. The data are from several mines (cross-sectional), over a period of time, and come from two different management systems in field activities.; This study hypothesized that the relationships between the cost of input factors and coal production are positive. Various statistical analyses were performed on the data to develop predictive models. The analyses included correlation tests, regressions among input factors, heterogeneity of slope tests, and multiple regression analyses. As a result of this process, three predictive variables were determined.; Model I shows the relationship between coal production and three independent variables: Coal Price. Production Sharing and Taxes, and Other Operational Costs. Model II shows the relationship between coal production and Production Sharing and Taxes, together with Capital Costs. Model III shows the relationship between coal production and Coal Price plus Field Cost. The difference in management systems is a significant factor in coal production in Model III, but it is not significant in Models I and II. Each of the three possible models shows a significant relationship between coal production and the input factors of coal mining in the Kalimantan region. To test the reliability of these models, the estimated results were compared with the actual data. |
