STUDY ON SOCIO ECONOMIC BENEFITS OF NICKEL MINING IN SOUTHEAST SULAWESI PROVINCE AND IT’S IMPACT ON LOCAL ECONOMY

• Main Author: Ode Aswandi, La
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/56801
• Institution: Institut Teknologi Bandung

Southeast Sulawesi province is an area with a large enough nickel resources, nickel mining has many socio economic benefits for the region, both direct and indirect benefits. Based on the Extended Cost Benefit Analysis (CBA) calculation method, on nickel mining activities, company will earn economic benefit with the Net Present Value (NPV) of USD 127.523.432, and Benefit Cost Ratio (BCR) of 1,37. For Province it will provide benefits of USD 18,240,246 with BCR value of 5.98. on nickel processing activities with the production life of 20 years. The company benefit is USD 210 324 423 with BCR value of 1.22. While Province will gain a net benefit of USD 39,948,971 with BCR value of 6.19. Based on the Social Net Gain (NSG) analysis model at current prices, net social benefits nickel mining activities for Southeast Sulawesi Province is USD 4,482,688, it’s the annual average in the 8-year mine life, with the value of Net Gain Coefficient (NGC) of 6.19%, while nickel processing activities will provide net social benefits net of $ 47,010,028, on average each year over the 20 year life of the production, with NGC value of 42.36%. Nickel mining and ferronickel processing industry sectors has a multiplier effect and upstreamdownstream linkages numbers relatively low compared with other economic sectors. Socio-economic efficiency, illustrated by the benefit cost ratio (BCR) on nickel processing business (6.19) is greater than the nickel mining operations BCR (5.98). Overall it is concluded that there is a linkages between the socio economic efficiency - economic efficiency - social efficiency, that the nickel mining industry in Southeast Sulawesi Province can provide social efficiency of economic, social efficiency and economic efficiency continues to increase for regional development, and also expected to supports national development.