Mining Added Value Improvement

2.5.2 Mining Added Value Improvement

The condition of natural resource management in Indonesia, particularly mineral and coal resources are mainly exported in the form of raw materials, without any processing. In other side, industrial countries always attempt to acquire “added value benefit” from exporter countries through advance processes in their countries or their group of organizations. This condition is occurred due to knowledge and technology of processing the raw material are dominating by industrial countries and it has not been transferred yet to developing countries. Towards the implementation of mining globalization, issue of added value becomes significantly important due to during these decades Indonesia is only as a producer or seller of mining raw material unprocessed raw material. So it is very important to Indonesia to improve its capability in processing raw material to become more valuable so that the resources can be utilized directly for national interests, particularly the area where mining industry operates. In this autonomy era, region and community development are very important, since local government and local community as the stakeholders are the parties who determine in the decision making of mining continuity operation, while the central government acts as facilitator in decision making. As described in Good Mining Practice book Suyartono, 2003, there are some factors of added value improvement that can be used to evaluate mining company performance, which are: 1. Manpower Resource Development 31 Another important factor in improving added value in mining company is to develop human resources. - Human resources development is done in every level, starting from laborer level until manager level. - Mining company must be concern with the skill improvement of their personnel. - Development of human resources management. 2. Local Entrepreneur Partnership Local partnership is related on how mining company to involve small local company in supporting their needs. 3. Community Development Program of local and community development who lives around mining area can be done by local partnership. Sense improvement of participation from local community is most the important thing in local and community development. 32 C HAPTER III R ESEARCH M ETHODOLOGY

3.1 TIME AND LOCATION