SCENARIO PLANNING OF COVID-19 PANDEMIC EFFECT ON COAL MINING COMPANY BUSINESS & ITS EMPLOYEE
This coal company is one of the largest coal mining companies in the world. The total coal production and sales around 60 million ton per year. This company has huge contribution to state revenue both in the form of taxes and non-tax state revenue, such as royalties and other fixed fees. In addit...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/62146 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | This coal company is one of the largest coal mining companies in the world. The total coal production and
sales around 60 million ton per year. This company has huge contribution to state revenue both in the form
of taxes and non-tax state revenue, such as royalties and other fixed fees. In addition, this company also
contributes to the welfare of the people of Kutai Timur Regency through its Corporate Social
Responsibility (CSR) program, clean water projects and electricity suppliers to PLN. The large number of
company employees and contractors also has its own multiplier effect on the stretching economy of Kutai
Timur Regency.
However, coal mine company revenue so depends on the coal price which is very volatile. According to
the record of coal price in tradingeconomics.com, the coal price is varying from $41 to $200 per ton in the
last ten years. Meanwhile, the production cost of coal is increasing over the years. Like what happened in
quarter 3 2020, where the coal price hit $46/ton and the production cost remain about the same with last
year. However, the coal price went up $180/ton a year later. This company has to find strategy to deal with
the ups and down of coal price and increasingly production cost. In addition, this company also face new
challenge that every company in this world has never experienced yet before which is covid-19 in 2020. In
order to fight again covid-19, health protocol is implemented in mining operation area such as wearing a
mask properly wherever the employees go, practicing physical distancing by cancelling all the activity that
making crowd and change it to online if it is possible, encouraging employees to wash hands regularly
with soap and water by installing the facility to every building inside mining area, and implementing the
tracing, testing, plus self-isolation by providing the additional resources in the form of budget, facilities,
medical and non-medical personnel for the prevention and handling of Covid-19. The way of employee
movement from one place to another also adjusted as travel restriction is implemented. As consequences
of implementing this protocol, problem likes lack of man power and employee getting stress due to travel
restriction arise. However, online meeting & training and visual sport comes up to adjust the condition and
the same time offer efficiency.
With all the contribution this company gives to the central and regional governments, the smooth of
mining operation is inseparable. If the company’s operations are stopped, it will certainly have a direct
impact on the contribution to the state and regions. Therefore, the scenario of this company stopped
operations even in the midst of the Covid-19 pandemic is excluded, of course with tight and planned
controls. By the time, the volatility of coal price and covid-19 condition always changes. Thus, this
research is trying to help this coal company in order to develop plausible scenarios, implications, and
options that available to take using scenario planning by taking assumptions on what the future is going to
be and how company business environment will change overtime in the future. |
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