Responsible Investment in Indonesia Mineral Mining Sector

DOI

10.2991/aebmr.k.200321.039How to use a DOI?

Keywords

responsible investment, business and human rights, tin, mineral mining

Abstract

Mining activities has long been associated with human rights violations. The extraction of minerals can cause a number or negative impact to local communities and the environment. At the same time, mining operation is very capital intensive industry. The need of capital in mining industry has been opening the opportunity for a responsible investment. The United Nations Guiding Principles on Business and Human Rights emphasizes that Investors has responsibility to identify and address human rights risks and impacts in their investment portfolios, and should use their power to influence investee companies to respect human rights. Indonesia is one of the world’s largest producers of mineral mining. Mining operations in Indonesia–like many other global mining operations–have been under public scrutiny for its impact to the environment and livelihood of local and indigenous communities. This article seeks to analyse to what extent a good performance of environment, social and governance (ESG) and respect for human rights by a mining company may affect its financial performance. Further, this article seeks to discuss whether a good performance of ESG and respect for human rights by a mining company may attract responsible investors. PT Timah Tbk. is used as the case study because of its important position in Indonesian mineral mining sector, and data availability as a public listed company. This article finds that there is a strong indication of positive relation between a good ESG and respect to human rights performance, and the financial performance of PT Timah Tbk. A good observance of ESG and human rights attracts UNPRI Signatories in investing their funds in PT Timah Tbk. shares.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Nur Kholis
AU  - Roichatul Aswidah
AU  - Iman Prihandono
PY  - 2020
DA  - 2020/03/27
TI  - Responsible Investment in Indonesia Mineral Mining Sector
BT  - Proceedings of the 3rd International Conference on Law and Governance (ICLAVE 2019)
PB  - Atlantis Press
SP  - 300
EP  - 310
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200321.039
DO  - 10.2991/aebmr.k.200321.039
ID  - Kholis2020
ER  -