GREEN ENERGY DIVERSIFICATION AND FINANCIAL PERFORMANCE OF INDONESIAN COAL MINING COMPANIES

• Main Author: Dwi Sulestiowidagdo, Ignatius
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/81661
• Institution: Institut Teknologi Bandung

As one of the cheapest fuels, coal is widely used as fuel in power plants. However, the use of coal as a fuel source has negative impacts on the environment such as the large carbon footprint left in the atmosphere. Currently, awareness has grown in countries around the world to reduce the use of coal and even prohibit the use of coal as a fuel source for power plants. The Indonesian government has determined that by 2060, Indonesia will implement Net Zero Emissions (NZE). To answer these challenges, several coal mining companies in Indonesia have begun making efforts to diversify their business into the green energy sector.\ In this research, the relationship between business diversification carried out by coal mining companies in the green energy sector will be examined on the company's financial performance. This research uses panel data and takes a sample of ten listed coal mining companies from 2018-2022. In this case, the financial performance measured is Return on Assets (ROA), Tobin Q and Return on Invested Capital (ROIC) using control variables in the form of: leverage, independent commissioner/total commissioner, growth operating income, shareholder, State Owned Company and Covid 19. The conclusion from the results of this research is that diversification in the green energy sector has a positive influence on company performance. This can be seen from the relationship between ROA, Tobin Q and ROIC of the company towards diversification in the green energy sector which is positive and significant. From the conclusion above, coal companies are advised to start diversifying their business in the green energy sector because it can improve the company's financial performance and as an effort to maintain the company's existence when the NZE policy is implemented in 2060.