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ECONOMIC AND ENVIRONMENTAL ANALYSIS OF NICKEL
MINING ACTIVITIES
Introduction:
Indonesia is a country rich in mineral resources that allows the development of the
mining sector. Based on the Frasser Institute survey in 2008-2009, Indonesia is ranked 7th as
a country rich in mining resources1 . The great potential of mining can be seen from the
contribution of mining to Indonesia's Gross Domestic Product (GDP).
The mining and quarrying sector contributed 11.82% to GDP in 2011, 11.80% to GDP
in 2012 and 11.24% to GDP in 2013, as shown in Table 1. From 2011 to 2013, the mining
and quarrying sector ranks 4th in Indonesia's GDP contribution ranking. This shows that the
mining sector has an important role in building the country's economy.
The abundance of mineral resources and the great potential for the development of the
mining sector in Indonesia encourage mining companies, both publicly and privately owned,
to extract existing resources and invest in this sector.
Mining activities carried out by companies not only have a positive impact on
increasing state income through the production value of mining commodities but also
increase community employment opportunities by absorbing labor in the mining and
quarrying sector. The increase in Indonesia's population causes an increase in the number of
labor force. The development of the mining sector causes an increase in the need for labor so
that the number of workers in this sector is increasing every year. To see the contribution of
labor absorption in Indonesia through the mining sector, it can be seen in Table 2.
The existence of potential metal mineral resources scattered in various parts of
Indonesia allows the creation of jobs in remote areas of the country. The absorption of local
labor in areas that have the potential to produce mining goods is a distinct benefit for the
welfare of the local community.
Nickel is one of the metal mineral mining goods that experienced an increase in
production from 2011 to 2012 by 23 752 966 tons or 34.45% (Central Bureau of Statistics,
2012). This figure shows the potential of nickel metal minerals to be developed. According to
the Investment Coordinating Board (BKPM) in 2013, areas that have nickel commodity
investment potential in Indonesia are in the provinces of East Kalimantan, Central
Kalimantan, Central Sulawesi, South Sulawesi, Southeast Sulawesi, East Nusa Tenggara,
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North Maluku, Maluku, West Papua and Papua.
The amount of nickel reserves in Southeast Sulawesi based on data from the ESDM
Office of Southeast Sulawesi Province is 97 billion tons with a nickel distribution area
reaching 480 000 Ha2 . The known amount of nickel reserves in North Maluku is 220
million tons spread across Tanjung Buli, Gebe Island, Obi Island and Weda Bay .3
One of the companies that extracts nickel metal mineral resources in Southeast
Sulawesi and North Maluku is PT Aneka Tambang (ANTAM) (Persero) Tbk, with business
activities and operations of the Nickel Mining Business Unit (UBPN) Southeast Sulawesi
(Sultra) in Pomalaa and Tapunopaka and UBPN North Maluku in Buli. Of the production
produced by PT ANTAM (Persero) Tbk, nickel is one of the main products in addition to
gold, silver and bauxite. Since 2006, PT ANTAM (Persero) Tbk has increased the amount of
nickel production following the increase in demand for nickel. The nickel ore produced has
been exported to Japan, Europe and China. Total nickel ore reserves and resources as of
December 31, 2011 amounted to 293.25 million wet metric tons (wmt) for saprolite and 407.3
million wmt for limonite. This amount is sufficient to meet the needs of PT ANTAM
(Persero) Tbk for the next few decades at fixed extraction rates4 . In addition to saprolite and
limonite nickel production, PT ANTAM (Persero) in UBPN Southeast Sulawesi also
produces ferronickel which contains about 20% nickel and 80% iron.
As with other mining activities, mining activities carried out by PT ANTAM (Persero)
Tbk also have a negative impact on the environment. Environmental impacts generated by
UBPN Sultra based on the 2011 annual report of PT ANTAM (Persero) Tbk are impacts on
air quality and coastal sedimentation. This impact on the environment occurs from various
production processes carried out such as the opening of mining areas and the transportation of
mining products.
Strategies to mitigate the impact of mining activities on environmental quality have
been prepared and implemented by PT ANTAM (Persero) Tbk UBPN Southeast Sulawesi.
Based on the annual report of PT ANTAM (Persero) Tbk in 2012, there was an increase in
the amount of environmental costs allocated from 2011 to 2012 in the total of all business
units and operations. In 2011 the allocated costs amounted to Rp 105 656 915 249 and in
2012 there was an increase to IDR 110 623 762 806.
PT ANTAM (Persero) Tbk UBPN Sultra also utilizes waste from nickel mining
activities in the form of tailings (slag) to build tourist attractions for the general public in the
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form of artificial beaches. This beach was built around 2004 by the company as an alternative
recreational location for the community. The beach is located in the office and employee
housing area of UBPN Sultra in Pomalaa.
The beach is made by hoarding the sea using soil coated with slag to form a road and
three pools used for swimming by visitors. When entering the Harapan Beach area, visitors
will see mangrove plants on the right and left of the road cultivated by PT ANTAM (Persero)
Tbk UBPN Southeast Sulawesi. In addition to the pool that can be used for swimming,
visitors can use other facilities that have been provided such as stands, bathrooms, restrooms,
and changing rooms, as well as pavilions that can be used to hold events. To be able to enter
the Harapan Beach area, visitors are not charged an entrance fee, but to be able to use the
pavilion, visitors are charged a rental fee. The utilization of slag mining waste in the form of
artificial beach development provides an alternative tourism for the people of Pomalaa.
In addition to the utilization of mining waste that has been carried out, UBPN Sultra
also obtained Blue PROPER from the Ministry of Environment in 2010, which means that
business activities and operations in this unit have complied with environmental regulations
such as the application of environmental management documents, water pollution control, air
pollution control, management of Toxic and Hazardous Waste (B3), seawater pollution
control, and environmental damage criteria. Awarding Proper aims to encourage companies
to comply with environmental regulations and achieve environmental excellence through the
integration of sustainable development principles in the production and service processes, the
implementation of environmental management systems, Reduce Reuse Recycle (3R), energy
efficiency, resource conservation and the implementation of ethical business a n d
responsible for the community through community development programs (KLH, 2012).
The existence of UBPN Sultra has a positive impact on the economy and society and
has a negative impact on the environment. Therefore, this research was conducted to analyze
the economic and environmental impacts of nickel mining activities in UBPN Sultra and
identify the benefits of the existence of artificial beaches from slag waste so as to obtain the
economic and environmental value of mining activities in UBPN Sultra that support the
improvement of environmental quality.
1.1 Problem Formulation
Nickel is a non-renewable mineral resource, so its mining activities need to consider
sustainability aspects. Sustainability includes consideration of the social and environmental
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impacts of mining.
The direct impact of mining activities on the environment around UBPN Sultra as
mentioned in the annual report of PT ANTAM (Persero) Tbk includes degradation of soil,
water and air quality, as well as disruption of biodiversity. One of the impacts that can be
seen as a result of nickel mining activities is the increased turbidity of coastal waters. This of
course can interfere with the growth and development of organisms in the vicinity, and in
extreme conditions, this can cause death for aquatic organisms that live in that location. In
addition, the existence of these mining activities has led to increasingly dense sedimentation
in the estuary area and in coastal waters as a whole (Hamzah, 2009).
When it rains, the water that passes through the rivers is usually reddish in color. This
situation also occurs in the sea, and even reaches a radius of 5-10 km parallel to the coast and
a radius of ± 700 meters perpendicular to the coastline. There is a strong suspicion that the
material carried with the water comes from the rest of the mining activity (overburden) that
enters coastal waters through rivers and surface runoff water around the mining site (Zubayr,
2009).
Efforts to control environmental impacts due to operational activities carried out and
also post-mining follow the master plan for implementing social and environmental
responsibility in the mining stage. The utilization of slag waste in the form of artificial
beaches carried out by PT ANTAM (Persero) Tbk UBPN Sultra also provides alternative
tourism for the people of Pomalaa. This artificial beach from tailings (slag) waste has three
pools for swimming and mangrove cultivation tours. The public is free to enter the beach area
without being charged an entrance fee by the management, in this case PT ANTAM (Persero)
Tbk UBPN Sultra. The beach is open every day from
08.00 WITA to 22.00 WITA. Harapan Beach is crowded with tourists during the holiday
season and weekends because this beach is the only artificial beach from slag waste in
Pomalaa.
Seeing the potential of nickel mining in UBPN Southeast Sulawesi for company
revenues and community economic improvement, problems that occur related to
environmental impacts, and the benefits of utilizing slag waste into artificial beaches, the
author is encouraged to analyze company revenues from mining activities, absorption of local
labor, environmental impacts and prevention, and the benefits of slag waste into artificial
beaches. By knowing how much economic and environmental impact of mining activities and
environmental management, it is expected that PT ANTAM (Persero) Tbk UBPN Southeast
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Sulawesi can improve environmental conservation efforts for the sustainability of operational
activities and the welfare of the community around the mining site.
Based on the description above, several problems can be formulated as follows:
1. What is the economic impact of PT ANTAM (Persero) Tbk UBPN Sultra's nickel
mining production activities?
2. How do PT ANTAM (Persero) Tbk UBPN Sultra's nickel mining production activities
impact the environment?
3. What are the benefits of using slag waste as an artificial beach attraction?
1.5 Scope of Research
The scope of this research is limited to analyzing company income, local employment,
improving Kolaka Regency infrastructure, and environmental impacts that occur as well as
identifying the benefits of using slag waste into artificial beaches. Company revenue in this
study is the revenue earned from the sale of limonite and saprolite (high and low grade
laterite) nickel ore. Improvement of Kolaka Regency infrastructure in this study is the impact
of the existence of UBPN Sultra mining activities on the development of Kolaka Regency
infrastructure. Local labor absorption in this study is the workforce from Southeast Sulawesi
Province who work at UBPN Sultra. Environmental impacts in this study are changes to
environmental conditions felt by the community and those that affect operational activities at
UBPN Sultra and activities undertaken by PT ANTAM (Persero) Tbk to control
environmental impacts in the form of sedimentation in the waters around the nickel mining
and processing site. The environmental impacts that will be studied are limited to the impact
on air quality and sedimentation that occurs in the waters around the nickel mining and
processing sites. In the analysis of labor absorption and loss of community income due to
illness, the number of workers uses the approach of the number of family heads due to
limited research data so that it is assumed that in one family there is one worker. The
identification of the benefits of using slag waste into an artificial beach is limited to
determine how the existence of this artificial beach provides benefits to the community. The
research location was in the Southeast Sulawesi Nickel Mining Business Unit of PT Aneka
Tambang (Persero) Tbk in Pomalaa District, Kolaka Regency, Southeast Sulawesi Province.
The research was conducted on limonite and saprolite (high and low grade laterite) nickel
mining activities at the Pomalaa nickel mine.
2.1
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2.2 Mining Nickel
2.2.1 Stages of Mining Activities Nickel
According to Law of the Republic of Indonesia Number 4 of 2009, mining is part or all
stages of activities in the context of research, management and exploitation of minerals and
coal which include general investigation, exploration, feasibility studies, construction, mining
processing and refining, transportation and sales, and post-mining activities.
The Environmental Impact Control Agency (Bapedal) (2001) suggests that mining
activities generally have the following stages of activity:
1. Exploration
2. Infrastructure development, access roads, and energy sources.
3. Construction of work camps and residential areas.
4. Extraction and disposal of waste rock.
5. Ore processing and operations.
6. Tailings (slag) containment, processing and disposal.
Nickel resources are generally found not too deep from the ground surface so that the
nickel ore mining system used in Indonesia is an open pit mining system. Mined nickel ores
are divided into saprolite and limonite nickel ores. Limonite nickel ore is a low grade laterite
nickel ore containing 0.8% - 1.5% nickel, 25%-35% iron and a small amount of cobalt.
Limonite lies above the saprolite layer and is cheaper and easier to mine. Saprolite nickel ore
forms below the limonite zone. Saprolite generally contains about 1.5%-2.5% nickel and is
classified as a high-grade laterite ore.
1. Land Clearing
Land clearing is the process of first clearing the vegetation above the nickel deposit to
facilitate the dismantling and excavation of overburden material and nickel ore that will be
carried out later.
2. Top Soiling
After the land clearing stage is completed, the topsoil containing humus and nutrients
that are important for soil fertility is stripped and transported and stockpiled in a special
location. This is done with the hope that the condition and composition of the top soil will not
change and can be reused when the reclamation and revegetation process is carried out after
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mining activities are completed.
3. Stripping and Transportation of Overburden
After the land clearing and top soiling stages have been completed, layers of soil that
do not contain or have low nickel content are stripped and transported first (overburden). This
is done because nickel deposits (saprolite and limonite) are usually located underneath the
overburden.
4. Nickel Ore Stripping and Transportation
Once the overburden has been removed, the mining of nickel ore (saprolite and
limonite) can commence. This stage of mining can be done using a combination of back hoe
and dump truck equipment. The mined nickel ore will then be transported to the stock pile to
be temporarily stockpiled at the mine site or directly to the processing plant or sent to the port
to be sent to a predetermined location.
5. Transportation
After being mined, the nickel ore material will then be transported to the processing site
for processing or to the port for shipment.
to the buyer. The nickel ore transportation process uses a combination of dump truck and
barge equipment.
6. Hoarding
Mining activities will result in changes in the shape of the earth's face in the form of
basins of former mining sites. Therefore, mining companies have an obligation to carry out
backfilling activities at former mining sites so as to minimize the landscape changes that
occur. In this stage, the topsoil containing humus and nutrients is reused. This backfilling
activity uses a combination of back hoe and bulldozer equipment.
2.2.2 Environmental Impacts of Mining Nickel
Mining activities using an open-pit mining system have an impact on the environment.
In general, mining activities using an open-pit mining system involve activities such as
equipment mobilization, construction and improvement of mining roads, land clearing, and
construction of supporting facilities. Overall, nickel mining activities have environmental
impacts in the form of changes in space, land and soil components, decreased air quality,
vibration disturbances, changes in microclimate, disturbances to the hydrological cycle,
increased soil erosion and sedimentation, decreased water quality, disturbances to land biota
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(flora and fauna) and disturbances to aquatic biota (Zubayr, 2009).
Disturbance to aquatic biota can be caused by the increasingly turbid coastal waters as a
result of mining activities. The increase in soil erosion rates is mainly due to the loss of
ground cover vegetation that occurs due to land clearing activities, stripping of topsoil, and
nickel ore mining (Hamzah, 2009).
2.2.3 Mining Waste Nickel
In nickel mining activities, there are various negative impacts on the environment,
namely the generation of three types of liquid waste in the form of engine cooling water, slag
cooling water and used oil and two types of solid waste in the form of overburden and
tailings (slag) (Hamzah, 2009).
Nickel mining tailings are slag in the form of cement-like grains of metal. If the slag
solid waste is too acidic, it can cause certain metals such as zinc and other metals to be
released so that it can endanger a body of water because it can cause a decrease in water
quality both physically and chemically and have an influence on the structure of the organism
community of a body of water (Zubayr, 2009).
Waste from nickel mining activities can be in the form of hazardous and toxic waste
(B3). The general definition of B3 waste is waste that has the potential to pose a risk to the
environment and public health (Zubayr, 2009). According to Government Regulation No.
18/1999, the definition of B3 waste is the residue of a business and/or activity that contains
hazardous and/or toxic materials which, due to their nature and/or concentration and/or
amount, either directly or indirectly, can pollute and/or damage the environment, and/or can
endanger the environment, health, human survival and other living things. This government
regulation also explains that waste is considered B3 waste if, after testing, it has one or more
of the following characteristics: explosive, flammable, reactive, toxic, infectious, and
corrosive.
2.3 Multiplier Effect
Richardson (1972) in Laoh (1989) said that input-output analysis is a tool to estimate
the impact of economic development in a region, and the magnitude of the impact can be
seen through the magnitude of the multiplier coefficient. Widely used multiplier coefficients
include the output multiplier coefficient, the labor multiplier coefficient, and the income
multiplier coefficient. According to the type of treatment, the multiplier coefficient can be
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divided into type I multiplier coefficient and type II multiplier coefficient.
According to Cooper et al (1998) the multiplier concept is based on the sales of firms
that require purchases from other firms in the local economy, such as interdependent
industrial sectors of the economy one another. According to the terminology, there are three
multiplier effects: direct effect, indirect effect, and induced effect. These three effects are used
to calculate the economy, which is then used to estimate the economic impact at the local
level.
The Income Multiplier Ratio is a value that shows how much direct impact is felt from
business unit expenditure that impacts the local economy. This multiplier measures indirect
and induced impacts. The type 1 income multiplier ratio illustrates the value of the indirect
impact of merchant or business unit expenditure, while the type 2 income multiplier ratio is a
measure of the induced impact.
2.3 Assessment of Damage or Pollution to Natural Resources
and Environment
According to KLH (2007), economic valuation can also be applied to determine the
value of damage to an environment. After the elements of damage and decline in
environmental functions are identified, the total economic value of environmental damage
and the total economic value of the cost of rehabilitation and restoration of natural resources
and the environment can be approached to determine the total economic value of damage.
The total economic value approach to environmental damage is based on the value of
environmental services, biodiversity, and socio-cultural influences that are lost and or
damaged. The total economic value approach to rehabilitation costs is used to calculate
rehabilitation costs for damage to natural resources and the environment by estimating
recovery costs (MOE, 2007).
Degradation value or damage value is the cost paid to the party affected by pollution
or damage to natural resources and the environment so that the party concerned recovers or
does not experience a worse situation than the situation before being exposed to pollution or
damage. Calculation of damage costs through economic valuation uses the assumption that
natural resources and the environment provide services or services that are directly or
indirectly valued by humans. Meanwhile, damage valuation through rehabilitation costs also
involves humans and is determined by the rehabilitation method chosen to be implemented
(MOE, 2007).
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According to Fauzi (2014), environmental damage assessment can help public policy in
determining the right price and use of fiscal mechanisms, such as environmental taxes, can
help decision making on public policy on the importance of goods and services produced
from natural resources and the environment, include depletion and degradation aspects of
natural resources and the environment in the context of development planning, and can help
public policy in determining compensation that occurs in natural resources and the
environment.
2.3.1 Concept of Change Productivity
Valuation of natural resources and the environment through the productivity change
approach is carried out using real market prices. By knowing the market price and quantity of
natural resources and the environment, the total value of these natural resources can be
determined (MOE, 2007).
In this method, the quantity of natural resources is considered as a factor of
production, so changes in the quality of the environment change productivity.
and production costs. Changes in productivity and production costs will inevitably change
prices and yield levels that can be observed and measured (MOE, 2007).
2.3.2 Cost Concept Prevention
If the value of environmental services cannot be estimated, then this approach, both
actual and potential expenditure, can be used. Through this concept, the value of the
environment is calculated based on the things that the community is prepared to do to prevent
environmental damage, such as making terraces to prevent erosion in the highlands, the cost
of maintaining national parks to improve water and or air quality, and others (MOE, 2007).
2.3.3 Cost Approach Health
The impact of changes in environmental quality can have a negative impact on health,
namely causing a group of people to become sick. The stages of implementing the medical
cost approach start from information explaining that there has been a health problem that
results in the need for medical expenses and or losses due to decreased work productivity, the
amount of medical expenses needed to recover, the amount of losses due to decreased work
productivity, the last is to calculate the total medical expenses and decreased work
productivity (KLH, 2007).
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According to Dixon et al. (1996), the health cost approach can be used to measure the
value of health losses due to pollution, this approach is based on the linkage of damage
functions related to the level of pollution and its effect on physical health. The health cost
approach has been used to estimate the economic value of improving health. This method
estimates private and public expenditure on health and the value of lost income, in relation to
morbidity and mortality and pollution levels.
The health cost approach ignores the influence of individuals' preferences on health
and illness, for which they are willing to pay. This approach considers an individual's health
care as an expenditure and not accepting the likelihood of individuals taking preventive
measures against disease and providing for the costs of reducing health risks.
2.4 Previous Research
Research on Economic and Environmental Analysis of Nickel Mining Activities is a
research that aims to see the economic and environmental impacts that occur from nickel
mining activities as well as the identification of environmental impact management programs
in the research location. To conduct such research, it is necessary to know comprehensive
methods and analytical tools so that the research produces outputs that can then be used for
further similar research. To find out the pattern of thinking in research on economic and
environmental impact analysis, it is necessary to review relevant previous research.
Hermawati (2012) conducted research on the Economic, Social and Environmental
Impacts of Utilizing Dairy Cattle Waste: Case Study in Haurngombong Village, Pamulihan
Subdistrict, Sumedang Regency, West Java using quantitative methods and logistic
regression analysis. Quantitative methods were used to analyze livestock business income in
terms of revenue and costs and energy expenditure of respondents using the Microsoft Excel
2007 program. Logistic regression analysis was used to process factors influencing decision
making in managing dairy cattle livestock waste into biogas using the Statistics SPSS 17
program. This study also used qualitative methods with descriptive analysis used to analyze
perceptions and social and environmental impacts of utilizing dairy cattle livestock waste.
Economic analysis using qualitative methods provides results that the utilization of waste into
biogas has an economic impact on increasing farmers' income and saving community energy
expenditures. Both analyzed the economy and the environment, but the study used qualitative
methods and logistic regression analysis.
Haqq (2009) conducted research on Cost Effectiveness Analysis and Community
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Assessment of Telogorejo Hospital Waste Management Semarang. This study uses the cost-
effectiveness analysis method to minimize the external costs incurred without reducing the
expected benefits of waste management so that the waste management system will be better.
From this method, the result of t he Large UDC obtained from the calculation is Rp 1
397.04. While the smallest cost-effectiveness ratio is in the COD parameter, which is Rp
0.016/mg. The cost-effectiveness ratios of TSS, BOD, NH3 and PO4 parameters are Rp
0.018/mg, Rp 0.044/mg, Rp 0.089/mg and Rp 0.471/mg. In this research using the cost-
effectiveness analysis method, the types of costs used are installation costs divided by the
economic life of the WWTP, operational costs and routine maintenance for three years, from
January 2005 to December 2007.
Hamzah (2009) conducted research on Water Quality Study of Pomalaa Nickel
Mining Site, Southeast Sulawesi. This study aims to evaluate water quality, determine the
amount of pollution load and analyze the assimilation capacity of coastal waters at the
Pomalaa nickel mining site. The research was conducted at 12 observation stations, namely,
Huko- Huko River, Pelambua River, Factory Outlet, Kumoro River, Pomalaa Pier, Shipyard,
Pomalaa Sea, Dawi-Dawi Slag Pier, Tambea Sea, Latumbi Sea, Sopura Sea, and Tanjung
Leppe Sea. Research using the STORET Index provides the results of the pollution status at
each research station. Kumoro River Station is classified as lightly polluted while other
stations are classified as moderately polluted. This research was also conducted in Pomalaa
District, Kolaka Regency, Southeast Sulawesi, but this research was conducted to determine
the pollution load in Pomalaa waters as a result of nickel mining activities carried out by
various companies.
Zubayr (2009) conducted research on Analysis of Heavy Metal Pollution Status in
Coastal Areas (Case Study of Liquid Waste Disposal and Solid Tailings/Slag of Pomalaa
Nickel Mining). The research was conducted in the coastal area of Kolaka Regency,
especially in the waste/tailings disposal area through a series of observations of waste/tailings
characteristics and measurement of physico-chemical properties of water in the coastal area.
The sampling locations consisted of 2 Four stations are located in the sea as waste inlets from
exploitation sites and factories, and eight stations are located in the sea as waste receivers.
T h e main data analysis conducted in this study is the determination of pollution load and
assimilation capacity. Determination of the water quality status of the study site was carried
out using the STORET method. Analysis of social data on community perceptions of liquid
waste and tailings (slag) at the research site is in the form of interviews and descriptive
questionnaires. The results of the STORET analysis of 8 measurement stations in the coastal
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area where liquid waste and tailings (slag) are disposed of, all of them are in the medium
pollution category. There are 90% of people who do not know the coastal area of Pomalaa
has heavy metal content, this indicates the lack of government attention to mining activities,
especially monitoring of disposed waste / tailings (slag). This research is expected to be an
input as well as information in efforts to rehabilitate, preserve and utilize coastal areas. This
study was also conducted in Pomalaa District, Kolaka Regency, Southeast Sulawesi, and this
study analyzed the status of heavy metal pollution caused by the disposal of liquid waste and
solid tailings/slag in Pomalaa nickel mining.
Wulandari (2013) conducted research on Estimating the Value of Community
Economic Losses Due to Situ Damage (Case of Settlements Around Situ Pladen, Beji
Village, Depok City). The research was conducted to estimate the value of community
economic losses due to damage to Situ Pladen. The research was conducted in Situ Pladen,
Beji Village, Beji Subdistrict, Depok City. The data used consisted of primary and secondary
data. The analysis methods used were descriptive analysis, Friedman test, and economic
valuation method. The result was that the total economic loss of the community due to
flooding in 2013 was Rp 92 956 229.23, the total cost of prevention within 10 years.
III FRAMEWORK THINKING
The mining sector plays an important role in building the country's economy.
Indonesia's mineral resources are spread from Sumatra Island to Irian Jaya Island. The
abundance of mineral resources and the great potential for the development of the mining
sector encourage mining companies both owned by the government and the private sector to
extract existing resources.
Nickel metal mineral production has the potential to be developed in Indonesia. One of
the companies that extracts nickel metal mineral resources is PT ANTAM (Persero) Tbk. The
company conducts mining activities and operations in Southeast Sulawesi and North Maluku
Provinces. Southeast Sulawesi Nickel Mining Business Unit (UBPN) in Pomalaa and
Tapunopaka and North Maluku UBPN in Buli.
It is necessary to consider sustainability aspects concerning the social and
environmental impacts of nickel mining activities. Mining activities carried out by PT
ANTAM (Persero) Tbk. provide economic and environmental impacts felt by the people of
Southeast Sulawesi Province. The economic impact is an increase in company income,
absorption of local labor, improvement of infrastructure in Southeast Sulawesi Province, and
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multiplier effect. Environmental impacts arising from this mining activity include a decrease
in air quality around the mining site, and sedimentation that occurs on the coast of Kolaka
Regency adjacent to the mining site.
PT ANTAM (Persero) Tbk has allocated environmental costs reaching Rp 105 656
915 249 for all operating units. Efforts to control environmental impacts due to the company's
operational activities and also post-mining follow the master plan for the implementation of
social and environmental responsibility in the mining phase.
PT ANTAM (Persero) Tbk UBPN Sultra utilizes mining waste in the form of slag to
create an artificial beach. This beach is an alternative tourist location for the people of
Pomalaa who want to swim in the sea. Location This tour is visited by many tourists and
tourists who want to enjoy the facilities are not charged an entrance fee.
The first stage in this research is to determine the economic impact of nickel mining
production activities in UBPN Sultra. The second stage is to see the resulting environmental
impact, then analyzed using an assessment approach to damage or pollution of natural
resources and the environment. The third stage is to find out other benefits of nickel mining
activities in UBPN Sultra in the form of utilization of slag waste used to create tourist objects
in the form of artificial beaches.
The results of this study are expected to provide information on the value of economic
and environmental impacts of nickel mining activities for UBPN Sultra. And then it can be
used by the local government of Kolaka Regency in formulating policies in environmental
management for mining companies in the area. To facilitate the implementation of the
research, a flow of thinking framework is made which can be seen in Figure 1.
1.1
Retrieval Method Example
The sampling method for communities around UBPN Sultra who feel the
environmental impact of mining activities and visitors to Harapan Beach uses a non-
probability sampling method, where all research objects do not have the same opportunity to
be selected as respondents (Juanda, 2007). Respondents for environmental impacts were
taken using purposive sampling technique, which is a sampling technique by determining
specific criteria for the sample (Prasetyo and Jannah, 2005). Respondents were selected from
communities that live close to UBPN Sultra and were willing to be interviewed. The number
of respondents interviewed was 30 people from the Tambea Village community, Pomalaa
District.
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Respondents who are visitors to tourist attractions are selected using the convenience
sampling method, where researchers take examples that are easily available, randomly or by
chance. This is relatively easier, faster and saves costs. The selected respondents were 40
visitors and met the criteria of being over 15 years old. Determination of the number of
samples in the study according to Roscoe (1975) in Sekaran et al (2006) is for most studies, a
sample size of more than 30 and less than 500 is appropriate.
1.2
Processing and Analysis Methods Data
Data collection is carried out to obtain the information needed in order to achieve the
research objectives. The data obtained will be processed descriptively, qualitatively and
quantitatively. This research uses the methods of business analysis, labor absorption analysis,
descriptive analysis of infrastructure improvement, multiplier effect analysis, cost of
sedimentation prevention and dust control as an impact of nickel mining activities, cost of
illness and descriptive analysis of the benefits of Harapan Beach Tourism Object. Data
processing is done with Microsoft Office Excel 2007 computer tools. Data analysis methods
that will be used to answer the objectives in the study can be seen in Table 4.
4.4.1 Environmental Impact Analysis
The environmental impact of PT ANTAM (Persero) Tbk. nickel mining activities can
be seen from two indicators, namely air quality around the area of UBPN Sultra nickel
mining and processing activities and sedimentation of coastal areas. This can be analyzed
using the Health Cost and Prevention Cost method.
a. Health Costs
Nickel mining activities have a negative impact on the environment. The polluted
environment causes various diseases and incurs medical costs for people who contract the
disease. According to Dwight et al (2005) in Dewi (2011), the health cost approach can be
used to measure the value of health losses due to pollution, this approach is based on the
linkage of damage functions related to the level of pollution and its effect on health.
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to physical health. This method is used to estimate the cost of morbidity due to changes that
cause people to become ill.
According to Dwight et al (2005) in Dewi (2011), health costs consist of Direct
Cost, Indirect Cost, Opportunity Cost, and Intangible Cost. This study estimates health costs
through Direct Cost and Opportunity Cost. Direct Cost is the direct cost incurred by sufferers
when contracting a disease. Opportunity Cost is the cost of lost productivity opportunities due
to illness. Direct Cost in this study is considered as the value of medical expenses to cure the
disease suffered by respondents. Opportunity Cost is the loss of income of respondents
because they c a n n o t work due to illness. The value of health costs can be seen in the
following equation:
C = P + MC
Description:
C= disease cost (Rp)
P= loss of income (Rp) MC= medical expenses (Rp)
1. Value of Revenue Lost
The value of respondents' income lost due to illness is calculated based on Cost of
Time. Cost of Time is the loss of respondents who do not go to work when they are sick. The
calculation of the Cost of Time value is different for respondents who work as employees and
non-employees. For respondents who work as employees, their current regular income is not
affected by the amount of time away from work due to illness. However, the loss of income
can be estimated through the Value of Sick Leave approach as a proxy for Cost of Time. Value
of Sick Leave explains how to estimate the actual value of sick leave that can be used to
reduce health insurance premiums in retirement. Cost of Time for non-employee respondents
is equal to the value of lost income per day. This value is obtained from the number of days
non-employee respondents did not work multiplied by the respondent's income level per day.
So, the value of respondents' lost income can be calculated with the following equation:
17
2. Medical Expenses
The medical expenses borne by respondents were calculated from the amount of money
spent on treatment, consisting of the cost of visiting a doctor or puskesmas and or the cost of
purchasing medicine. The respondent's medical expenses are the costs incurred by the
respondent to treat illness when the respondent is sick. The medical expenses incurred by
respondents can be seen in the following equation:
b. Cost of Prevention
According to MOE (2007), if the value of environmental services cannot be estimated,
then this approach, both actual and potential expenditure, can be used. Through this method,
the value of the environment is calculated based on what the community is prepared to do to
prevent environmental damage.
The stages of implementation of prevention cost calculation according to MOE (2007)
are:
1. Determine ways to prevent (minimize impact), both physical prevention and risk-averse
behavior.
2. Identify data and market prices for each data component required.
3. Add up all expenditure values to implement the prevention measures.
4.4.2 Identify the Benefits of Using Waste Slag
Identify the benefits of using slag waste to make artificial beaches using descriptive
analysis. Descriptive analysis is used to determine the characteristics of visitors to tourist
attractions in the form of artificial beaches from slag waste. Initial data in the form of
characteristics obtained will be tabulated into a t a b u l a r framework and then analyzed on
these characteristics. The variables analyzed include gender, age, education level, type of
work, income, number of dependents, area of origin, distance traveled, travel time, number of
visits, travel costs, mode of arrival, number of groups, means of transportation used, purpose
of visit, and length of time knowing the tourist location.
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5.1 General Site Conditions Research
5.1.1 General Condition of PT ANTAM (Persero) Tbk. Nickel Mining Business Unit (UBPN)
Southeast Sulawesi
ANTAM (Persero) Tbk. Nickel Mining Business Unit (UBPN) Southeast Sulawesi
(Sultra) is a State-Owned Enterprise (SOE) engaged in nickel mining. This nickel mining
activity is administratively located in Pomalaa District, Kolaka Regency, Southeast Sulawesi
Province.
The area of the Mining Authorization (KP) of PT ANTAM (Persero) Tbk. UBPN
Sultra is 7 251.3 Ha. According to the RKL RPL Report for the first quarter of 2012 of PT
ANTAM (Persero) Tbk. UBPN Sultra (2012d), nickel ore mining in the KP Pomalaa area is
divided into three mining areas, namely the North Area, Central Area, and South Area
including a group of islands in Mekongga Bay.
The northern area is bounded by the Kumoro River, which flows southeast towards
Mekongga Bay in the center of the northern area. This area extends northwards beyond the
western KP area near the coast, encircling the hills and flanking the Kumoro River.
The northern central region borders the southern northern region, separated by the
Kumoro River, the northern part is hilly and the southern part is coastal and the western part
consists of a very wide valley and the eastern part is the boundary of the KP area.
The southern area includes several areas including Sitado, Tanjung Pagar, Tanjung
Leppe and Batu Kilat. The mining area in Mekongga Bay forms a cluster separated by a
shallow sea with an average depth of 30 meters. These islands are Maniang Island,
Lambasani Island and Buaya Island.
Nickel production of PT ANTAM (Persero) Tbk. UBPN Sultra consists of high-grade
laterite nickel ore or High Grade Saprolite Ore (HGSO), nickel ore, and nickel ore Low
Grade Saprolite Ore (LGSO), and Limonite. High grade laterite nickel ore (HGSO >1.80%
Ni) is depleting its reserves, therefore to extend the production period of PT ANTAM
(Persero) Tbk. UBPN Sultra, utilized the large reserves of low grade laterite nickel ore
(LGSO 1.50%-1.79% Ni). The HGSO nickel ore is then used as raw material to produce
Ferronickel (FeNi) metal.
To date, PT ANTAM (Persero) Tbk. UBPN Sultra has successfully built three FeNi
plant units, namely unit 1 plant with a capacity of 5 000 tons, unit 2 plant with a capacity of
5000 tons, and unit 3 plant with a capacity of 15 000 tons. In the area of PT ANTAM
(Persero) Tbk. UBPN Sultra in addition to the ferronickel plant, there are also other
19
supporting infrastructure such as power plants, seaports, hospitals, and employee housing
complexes. Until the end of 2012, the number of permanent employees of PT.ANTAM
(Persero) Tbk. UBPN Sultra has 1 136 employees, up from 1 125 employees in 2011. In
addition to permanent employees, there is another group of workers, namely outsourced
employees who are employed on a contract basis for certain jobs. The number of outsourced
employees in 2012 at PT ANTAM (Persero) Tbk.UBPN Sultra reached 3 356 people.
PT ANTAM (Persero) Tbk. has a policy to involve local labor or local sons. Local
employees are defined as workers who were born around the Ring III area around the location
of the company's activities, which includes provincial coverage. The percentage of local
employees at PT ANTAM (Persero) Tbk. UBPN Sultra in 2012 reached 80% of the total
number of permanent employees, namely 909 people. Of the number of employees of local
sons, four people have served at the manager level, reaching 0.44%.
As a company that utilizes natural resources, PT ANTAM (Persero) Tbk. UBPN
Sultra conducts post-mining strategies which include environmental management. In 2012,
UBPN Sultra has conducted reclamation efforts on twenty hectares of ex-mining land. Nine
hectares were in Bukit R1 and eleven hectares were in Bukit R2.
5.1.2 General Condition of the Village Tambea
Tambea Village is located in Pomala District, Kolaka Regency, Southeast Sulawesi
Province, with an area of approximately 34.16 km². Geographical conditions in the form of
hilly land and on the coast with rainfall of 215 mm / year, the air temperature ranges from 29-
33 degrees Celsius. The distance of the research location from the district capital, Kolaka, is
approximately 32 km, from the sub-district town, Pomalaa Village, 3 km. The condition of
the district road facilities and infrastructure is quite good, partly paved and partly damaged
and rocky, while the village road facilities are still rocky and there are even dirt roads.
Tambea Village is a village located in the center of Pomalaa Sub-district,
The distance from one village to another is quite far. Geographically, Tambea Village borders
the following areas:
a. North : Pomalaa Village
b. South: Pesouha Village, Pomalaa District
c. West: Hakatutobu Village, Pomalaa Sub-district
d. East: Bone Bay
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Based on village monographic data, it was found that the total population in 2012 was
983 or 250 households, spread across three sub-villages, namely Sanre Bulo sub-village (105
households), Mattiro Riaja sub-village (71 households), Mattiro Rilau sub-village (74
households). The average population of this village has a livelihood as a fisherman with a
percentage of 57.86% of the total working village population of 319 people, private
employees at 26.65%, self-employed at 10.97%, civil servants at 3.13%, retired civil servants
/ TNI / Polri at 0.94%, and village healers at 0.63%.
The number of Tambea Village residents who completed their education was 564
people. The highest percentage of residents who completed their education up to junior high
school level was 38.48% (217 people), followed by residents who completed their education
up to elementary school level (37.05%) (209 people). Those who completed their education
up to senior high school level amounted to 21.1% (119 people), up to a diploma level
amounted to 1.95% (11 people), and up to Bachelor's degree level amounted to 1.42% (8
people).
In general, the economic condition of the community is classified as lower middle
class, access to clean water, educational facilities, worship facilities, and health facilities is
quite difficult due to the limited number and difficult roads to the location. Educational
facilities available in Tambea Village consist of one Early Childhood Education (PAUD) and
one Elementary School (SD). The available worship facilities consist of one mosque. The
available health facilities consist of one Village Health Center (Puskesdes), one posyandu,
nine dug wells, and two drilled wells. The potential that comes from natural resources in the
form of bays and mining products is enough to provide hope for the people of Tambea
Village.
5.2 Characteristics of Respondents
5.2.1 Socioeconomic Characteristics of Communities
The socio-economic characteristics of the community are important to study in this
research. The socio-economic characteristics of the community living around UBPN Sultra
can affect the value of environmental impacts felt by the community. In addition, community
characteristics will also affect the community's answers regarding the perception of the
existence and environmental impacts caused by UBPN Sultra and its control efforts.
21
The socioeconomic characteristics of the Tambea Village community were obtained
based on a survey of 30 respondents representing 983 people in the village. The
characteristics of these respondents were viewed from several aspects including gender, age,
latest education, type of work, household income, status of residence, and length of stay. An
explanation of each respondent's characteristic criteria can be described in the discussion
below.
a. Gender
Most of the respondents interviewed in this study were male, which amounted to 90%
while female respondents amounted to 10% of the total 30 respondents. The dominance of
male respondents is because in general men play the role of head of the family who works for
the family and understands household income and expenses. This helped the research to
obtain information on health costs and days away from work due to illness. A comparison of
the ages of male and female respondents can be seen in Table 5.
b. Age
Age level is one of the criteria that reflects the level of maturity and mindset of a person
in taking an action or decision regarding matters related to him. The age of respondents is
quite varied with a distribution of ages 21-70 years. The largest number of respondents was in
the age distribution of 31-40 years, which amounted to 36.67% of the total number of
respondents.
c. Education Level
A person's level of education is also an influential factor in decision-making and the
mindset of that person in addition to age. The education level of respondents in this study
varies, ranging from elementary school to university level. The majority of respondents are
high school graduates.
d. Type of Work
The types of respondents' jobs consisted of private employees, laborers, and self-
employed. The main occupation of respondents in Tambea Village is private employees,
which is 60%, followed by laborers at 23.33% and self-employed at 16.67%. Respondents
who work as private employees work in private mining companies and heavy equipment
supply companies. A comparison of the percentage of respondents in each type of work can
be seen in Table 8.
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e. Reception
The amount of respondents' income based on the results of the study varied
considerably. The respondent's income in this study is the sum of the main and side income
of the head of the household. The amount of income represents the level of household
welfare. The majority of the community respondents had ranged between Rp 1 500 001-Rp 2
000 000, amounting to 43.33% of the total number of respondents. Variations in the amount
of respondents' income can be seen in Table 9.
f. Status of Residence
Based on the survey results, the majority of respondents' home ownership is self-
owned, amounting to 60% of all respondents. Then, respondents who rent or rent a house are
40%. This shows that the environmental impacts that occur will generally affect respondents
who stay at the location and cannot move. A comparison of the distribution of respondents'
home ownership status can be seen in Table 10.
g. Length of Stay
The length of stay of respondents relates to the extent to which respondents feel the
environmental impact of UBPN Sultra's nickel mining activities and adapt to these
circumstances. The majority of respondents have lived around UBPN Sultra for 1-10 years,
as many as 60% of the total respondents. Although the distance of residence is close to the
UBPN
5.2.2 Community Perceptions of UBPN Sultra's Existence and Environmental Impacts
Nickel mining activities in UBPN Sultra have positive and negative impacts on the
surrounding community. These mining activities open more opportunities to work in the
mining sector and sectors that support mining for the surrounding community. It is also
undeniable that mining activities can cause negative impacts on the surrounding environment.
The existence of UBPN Sultra still has an environmental impact felt by the surrounding
community, especially the people of Tambea Village, Pomalaa District.
a. Public Perception of the Existence of UBPN Sultra
Nickel mining activities by PT ANTAM (Persero) Tbk. UBPN Sultra has been carried
out since 1968. The company is a state-owned company, 65% of whose shares are owned by
23
the Government of the Republic of Indonesia. The existence of UBPN Sultra in Pomalaa
Sub-district, Kolaka Regency, Southeast Sulawesi has caused an attitude that is shown from
the local community's approval of the company's nickel mining activities. Based on the
results of research on 30 respondents in Tambea Village, Pomalaa District, as many as 17
respondents (56.67%) stated that they agreed with the existence of the company's nickel
mining activities.
The majority of respondents stated that they agreed with the existence of UBPN Sultra.
The reason for this agreement is based on the role of UBPN Sultra for the economy of the
surrounding community, including providing added value to household income, the
opportunity to work at UBPN Sultra, UBPN Sultra cares about the community and helps
build village facilities / infrastructure, and also UBPN Sultra prioritizes local labor.
b. Community Perceptions of Environmental Impacts
Environmental impacts arising from nickel mining activities by UBPN Sultra, based on
the results of the study were felt by 20 respondents (66.67%) out of a total of 30 respondents
in Tambea Village, while 10 other respondents (33.33%) stated that they did not feel the
environmental impact of nickel mining activities. The proportion can be seen in Table 13.
This can be influenced by respondents' understanding of the definition of environmental
impact itself. Most people understand that the environmental impact of nickel mining
activities in this study is the effect of nickel mining activities UBPN Sultra on environmental
quality around the mining area. Changes in environmental quality, in this case air quality, are
the impact of nickel mining activities. The proportion of community perceptions regarding
changes in environmental quality can be seen in Table 14.
Based on the table, 21 respondents (70%) stated that there was a decrease in air quality
in their neighborhood as nickel mining developed in the area. Air quality was stated to be
constant by 3 respondents (10%) and 6 other respondents (20%) stated that they did not know
whether there was a change in air quality or not.
5.2.3 Characteristics of Beach Attraction Visitors Expectations
Visitor characteristics are important to study in this research. These visitor
characteristics can affect the benefits felt by the community. Visitor characteristics were
obtained based on a survey of 40 respondents representing visitors to Pantai Harapan tourist
attraction. These visitor characteristics are viewed from several aspects including gender, age,
education level, type of work, income, and number of dependents. An explanation of each
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respondent's characteristic criteria can be described in the discussion below.
a. Gender
Most of the respondents interviewed in this study were male, which amounted to 62.5%
while respondents who were female amounted to 37.5% of the total 40 respondents. The
dominance of male respondents is because they generally understand household income and
expenses and have a role as head of the household who is the main source of family income.
This helps researchers in obtaining information on travel costs incurred to reach Pantai
Harapan tourist attraction. Comparison between male and female respondents can be seen in
Table 15.
b. Age
Age level is one of the criteria that reflects the level of maturity and mindset of a
person in taking an action or decision regarding matters related to him. The age of
respondents is quite varied with an age distribution between 17-52 years. The highest number
of respondents was in the age distribution of 23-28 years, which amounted to 42.5% of all
respondents.
c. Education Level
A person's level of education is also one of the factors that influence decision making
and people's mindset This is in addition to the age factor. The education level of respondents
in this study varied, ranging from elementary school to university level. The majority of
respondents are graduates of senior high school (SMA), as many as 62.5% of all respondents.
A comparison of the percentage of respondents' education levels can be seen in Table 17.
d. Type of Work
The main occupation of respondents visiting Pantai Harapan tourist attraction is private
employees at 67.5%, followed by housewives at 17.5%. Visitors who work and students have
routine activities at work, so they usually take advantage of holidays and free time to do
recreation. For housewives who do recreation usually to accompany their husbands and
children. A comparison of the percentage of the number of respondents in each type of work
can be seen in Table 18.
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6.1 Economic Impact Analysis of Mining Activities
6.1.1 Revenue Analysis Business
a. Total Revenue
Business revenue is the result of multiplying the amount of production by the selling
price. The revenue obtained for one year came from the sale of ferronickel and nickel laterite
ore i n 2 0 1 2 . T h e business analysis in the study used 2012 data, because in the year the
study was conducted the company had not yet published the company's revenue data. The
company produces ferronickel as an advanced product from laterite nickel ore. Nickel ore
comes from three mines owned by PT ANTAM (Persero) Tbk. UBPN Sultra in Pomalaa
District. Business revenue of PT ANTAM (Persero) Tbk. UBPN Sultra is the result of
multiplying the amount of laterite nickel ore production and ferronickel exported by the
selling price. The amount of production of nickel laterite ore and ferronickel exported and the
selling price can be seen in table 21.
ANTAM (Persero) Tbk. UBPN Sultra in 2012 produced 18 372 tons of ferronickel or
40 503 329.94 pounds. The amount of ferronickel production is the largest compared to other
production products, such as LGSO of 1 349 970 wmt and limonite of 493 455 wmt. In 2012,
ferronickel exports were t h e largest, reaching 43 062 897 pounds with a selling price of
US$ 7.7/pound or when converted at the exchange rate in 2012 to Rp 73 150/pound. The total
business revenue of UBPN Sultra from the sale of nickel mining products in 2012 was Rp 3
564 712 224 720. In 2012 the exchange rate of the rupiah against the dollar was in the range
of Rp 9 500 and then converted to the current value by multiplying the value by the deposit
interest rate that has been added one and multiplied by the difference between the year of
receipt and the current year, namely in 2014 with Bank Indonesia deposit interest rate of
7.50% period April 2014. Business revenue of PT ANTAM (Persero) Tbk. UBPN Sultra
from the sale of ferronickel amounted to Rp 3 640 277 589 282.47, revenue from the sale of
LGSO amounted to Rp 418 277 901 274.57, and revenue from Limonite sales amounted to
Rp 60 915 074 135.02. Based on these calculations, the company's revenue from export
product sales at the current value is Rp 4 119 470 564 692.05.
b. Total Cost
Total cost is an important component in a business that will manage inputs into outputs.
The total costs incurred by the company during one year include fixed costs and variable
2
6
costs. Fixed costs are costs that are fixed in amount, independent of changes in the level of
activity in producing products. Variable costs are costs that depend on the amount of
production produced.
Fixed costs in nickel mining activities of PT ANTAM (Persero) Tbk. UBPN Sultra
includes administrative and general expenses, as well as depreciation and amortization
expenses. The amount of fixed costs incurred by the company during 2012 amounted to Rp
450 790 084 535, this value is then converted to the current value by multiplying the value by
the deposit interest rate that has been added one and multiplied by the difference in the year
of expenditure with the current in 2014 with the Bank Indonesia deposit interest rate of
7.50% period April 2014, so that the fixed costs obtained is Rp 520 944 291 440.76
(Appendix 2). Details of fixed costs in nickel mining activities of PT ANTAM (Persero) Tbk.
UBPN Sultra can be seen in Table 22.
Variable costs include material expenses, taxes and levies, employee expenses,
service expenses, other expenses, and marketing expenses. The amount of variable costs
incurred by the company during 2012 was Rp 2 920 447 000 000.00, this value was then
converted to the current value by multiplying this value by the deposit interest rate which has
been added one and raised by the difference between the year of expenditure and the present,
namely in 2014 with the Bank Indonesia deposit interest rate of 7.50% for the April 2014
period so that variable costs were obtained at Rp 3 374 941 564.
375.00 (Appendix 2). Details of variable costs in nickel mining activities of PT ANTAM
(Persero) Tbk. UBPN Sultra can be seen in Table 23.
c. Business Income Analysis
Revenue is the difference between total revenue and total costs. Nickel mining
activity revenue of PT ANTAM (Persero) Tbk. UBPN Sultra is obtained from the difference
between the total revenue obtained and the total costs incurred. Revenue is determined by the
sales value of Ferronickel, LGSO and limonite exported, while the total cost is determined by
the production costs incurred.
Total revenue is the result of multiplying the amount of exported production by the
unit price of the product. The total revenue obtained by the company amounted to Rp 4 119
470 564 692.05. Total costs incurred
the company amounted to Rp 3 895 885 855 815.76. Based on the business analysis of nickel
mining activities of PT ANTAM (Persero) Tbk. UBPN Sultra, the company obtained a
business profit of Rp 223 584 708 876.29. Analysis of the income of nickel mining activities
27
of PT ANTAM (Persero) Tbk. UBPN Sultra can be seen in table 25.
6.1.2 Analysis of Labor Absorption
In this study, the analysis used is the analysis of local labor absorption by looking at the
number of workers absorbed in the nickel mining activities of PT ANTAM (Persero) Tbk.
UBPN Southeast Sulawesi. Local workers are workers who are sons of the region from
Southeast Sulawesi Province. In its production activities, the workforce of PT ANTAM
(Persero) Tbk. UBPN Sultra is divided into permanent employees and outsourced employees.
Of the total 1136 permanent employees, 909 local workers came from Southeast
Sulawesi Province or 80.02% in 2012. Outsourced employees came from companies in
Southeast Sulawesi Province that partner with PT ANTAM (Persero) Tbk. UBPN Southeast
Sulawesi. The number of outsourced employees in 2012 was 3356 people or 74.7% of the
total number of employees of PT ANTAM (Persero) Tbk. UBPN Sultra as many as 4492
people. The list of companies and the number of workers for each company can be seen in
Appendix 3.
Southeast Sulawesi Province had 527 352 households in 2012 (Health Profile of
Southeast Sulawesi Province, 2012). T h e number of local workers absorbed by nickel
mining activities at PT ANTAM (Persero) Tbk. UBPN Southeast Sulawesi as many as 4265
people. The percentage of labor absorption can be calculated by dividing the number of
working days by the number of households multiplied by the number of working days then
multiplied by one hundred percent. Labor Absorption = Number of local workers x Number
of working days x 100%
Number of households in Southeast Sulawesi x Number of working days Labor
Absorption = 4265x 300 x 100%
527 352 x 300
Labor Absorption = 0.809%
Employees of PT ANTAM (Persero) Tbk. UBPN Sultra, both permanent and
outsourced, have the same working hours between men and women, so that in the calculation
of labor absorption is not differentiated between men and women. Therefore, the percentage
of labor absorption from the nickel mining activities of PT ANTAM (Persero) Tbk. UBPN
Sultra is 0.809%.
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6.1.3 Descriptive Analysis of Improvements Infrastructure
In mining activities carried out by PT ANTAM (Persero) Tbk. UBPN Southeast
Sulawesi, the company's social responsibility towards the impacts caused is one of them in
the Community Development (BL) and Community Development (Comdev) programs. The
implementation of corporate social responsibility is part of an effort to improve the
company's performance, both in maintaining the sustainability of business operations,
building positive company values in the eyes of the public, and maintaining harmonious
relationships with stakeholders.
The implementation of BL and comdev program includes infrastructure improvement
in Southeast Sulawesi Province, especially in Kolaka Regency. BL and comdev program
funds are taken from the company's profit. In 2012, the realization of funds for basic
infrastructure improvement by PT ANTAM (Persero) Tbk. UBPN Southeast Sulawesi
reached Rp 22 491 478 209. Infrastructure improvements carried out by the company such as
support for the construction of mosques, road paving, community service vehicle assistance,
support for the construction of meeting halls, and support for the construction of government
buildings. This infrastructure improvement fund is then converted to the current value by
multiplying the value with the deposit interest rate that has been added one and multiplied by
the difference between the year of expenditure and the present, namely in 2014 with the Bank
Indonesia deposit interest rate of 7.50% for the April 2014 period, so that the cost of
infrastructure improvement is Rp 25 991 714 505.28. Details of basic infrastructure
improvements and costs incurred can be seen in Appendix 4.
6.1.4 Multiplier Effect Value
The value of the multiplier effect is used to measure how much economic impact on the
community around UBPN Sultra. The economic impact of UBPN Sultra on the community is
estimated using the income multiplier ratio type I, which is a value that shows how much
indirect impact on the local economy. The calculation of the type I income multiplier ratio
can be seen in Table 26.
The estimated value of the type I income multiplier ratio is obtained from the sum of
the value of the direct impact felt by the community from UBPN Sultra expenditures in the
form of tax and levy burdens (Table 23) and infrastructure improvement costs (Appendix 4)
with the value of the indirect impact felt by the community from UBPN Sultra expenditures
29
in the form of local labor wages, the results of this sum are then divided by the value of the
direct impact. Local labor wages are obtained from multiplying the number of local workers
of 4 265 people by the wages of outsourced labor in one year. Based on Table 26, the
estimated value of the type I income multiplier ratio is 1.34, meaning that every one rupiah
increase in UBPN Sultra expenditure will result in an increase of 1.34 rupiah to the income of
the community and local labor in UBPN Sultra.
6.2 Environmental Impact Analysis of Mining Activities of PT. ANTAM (Persero) Tbk.
UBPN Sultra
6.2.1 Prevention Cost Analysis Sedimentation
Sedimentation prevention efforts as a result of mining activities in the KP area of PT
ANTAM (Persero) Tbk. UBPN Sultra needs to be done to reduce the risk or impact of these
activities. However, these efforts require costs that must be incurred by the company.
Sedimentation prevention efforts that have been carried out include making mine drainage
channels according to land contours, making sediment traps, and making sedimentation
ponds.
Drainage channels are made in the mining area and on the mine road. The creation of
these channels is intended to concentrate runoff water through drainage ditches so that it is
very easy to control the course of surface flow and sediment load. Sediment traps are made
with the aim that the sediment load transported through the drainage ditches can be
accommodated in them. Sedimentation ponds are created at locations adjacent to the water.
With the creation of sedimentation ponds, water mixed with mud will be collected entirely in
these ponds. With the creation of sedimentation ponds, it is expected that the water released
into the waters will no longer contain mud. Currently, each sediment pond has a volume of
60,000m3 with 14 units at the north mine site, 6 units at the central mine site, and 3 units at
the south mine site. Then a drainage channel is made from the sediment pond to the sea so
that the water does not enter the residents' rice fields, reducing their productivity.
(Environmental Management Plan of PT ANTAM (Persero) Tbk. UBPN Sultra, 2010).
Sedimentation prevention efforts can be carried out using heavy equipment. The
heavy equipment used by UBPN Sultra is the PC 200 type which is rented from a partner
company. PC 200 is a heavy equipment that has a long range that makes it easy to make
drainage, sediment traps, and sedimentation ponds. The use of heavy equipment uses a
contract system carried out with partner companies. Contracts are made every month by
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calculating the time of use of heavy equipment.
The use of the PC 200 machine for sedimentation prevention is influenced by the
weather conditions at the mine site at the time and the work to be carried out. The type of
sedimentation prevention carried out is adjusted to the mine site, whether drainage channels,
sediment traps, and sedimentation ponds will be made or only maintenance in the form of
dredging silt against drainage channels, sediment traps, and sedimentation ponds.
It can be seen in Table 27, the use of PC 200 heavy equipment in September, October
and November used two heavy equipment. This is because in these months the company
made efforts to prevent sedimentation by maintaining drainage channels, sediment traps, and
sedimentation ponds before entering the rainy season. Heavy equipment cannot work at the
mine site when the weather is rainy, because the soil is unstable so it is feared that it can
injure heavy equipment users.
The calculation of sedimentation prevention costs is calculated by converting the
costs incurred by the company in a particular year to present value using the prevailing
interest rate. This method is known as compounding. In this study, all costs incurred by the
company in conducting sedimentation prevention efforts were converted into present value,
namely in 2014 with the Bank Indonesia deposit rate of 7.50% for the April 2014 period.
The prevention costs incurred by the company to reduce the impact of sedimentation
come from the rental of PC 200 heavy equipment and the wages of two outsourced workers
who operate the heavy equipment. The use of PC 200 heavy equipment in 2012 amounted to
Rp 1 617 100 000 and the wages of outsourced labor amounted to Rp 20 273 000, then
converted to the current value by multiplying the value with the deposit interest rate that has
been added one and raised by the difference between the year of cost expenditure and the
present. Based on these calculations, the cost of preventing sedimentation was obtained at Rp
1 892 189 173.13, which can be seen in the table below.
Appendix 5.
6.2.2 Control Cost Analysis Dust
Nickel mining activities of PT ANTAM (Persero) Tbk. UBPN Sultra has a negative
impact on the environment in the form of air pollution from dust generated by the operation
of the Diesel Power Plant (PLTD) generator, the production process, and the transportation of
raw materials. Based on the Environmental Management Plan of PT ANTAM UBPN Sultra
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(2010), efforts to control the impact of air pollution due to increased dust and particles in the
air at the location of activities and settlements include watering the raw material
transportation route from the port site to the factory site that crosses residential areas.
This effort is carried out every day while UBPN Sultra is operating. Watering dust in
the dry season is done more often than in the rainy season, because the dust is thicker. The
source of water for dust watering comes from nearby rivers, namely Kumoro and Huko-Huko
rivers (Sustainability Report of PT.ANTAM (Persero) Tbk. UBPN, 2012a). The costs
incurred by the company to reduce the impact of air pollution in the form of dust come from
the rental of one unit of heavy equipment water truck and the wages of outsourced labor
totaling two people who operate the equipment. The cost of renting a water truck in 2012 was
Rp 2 400 000 and the wages of outsourced labor as heavy equipment operators amounted to
Rp 44 232 000.
The cost of dust control is obtained from the sum of the cost of renting water trucks and
outsourced labor wages, then the value is converted to the current value by multiplying the
value by the deposit interest rate which has been added one and raised by the difference
between the year of expenditure and the present, namely in 2014 with a Bank Indonesia
deposit interest rate of 7.50% for the period April 2014. Based on this calculation, the cost of
dust control is Rp 53 889 105, which can be seen in Appendix 6.
6.2.3 Health Costs Society
Environmental impacts that arise as a result of nickel mining activities by UBPN Sultra
have an impact on the health of people living around the location of these activities.
Environmental impacts in the form of dust pollution disrupt public health so that people have
to spend money to treat t h e i r illnesses. Besides In addition to the cost of medical
treatment, other losses experienced by the community include loss of income due to being
unable to work due to illness.
a. Medical Expenses
Based on the results of the study, 30% of the 30 respondents (9 respondents) suffered
from illness due to decreased air quality in the form of dust around UBPN Sultra. The illness
suffered by respondents related to decreased air quality is Acute Respiratory Tract Infection
(ARI). Of the 9 respondents who suffered from illness, 1 respondent (11.11%) went to the
hospital and 8 other respondents (88.89%) went to the nearest health center.
The results of the estimation of the total cost of community treatment can be seen in Table 1.
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29. All respondents who suffered from illness incurred medical expenses to treat their illness.
The total medical expenses of the respondents amounted to Rp 1 230 000, which can be seen
in Appendix 7. The total medical expenses were divided by 9 respondents who incurred
medical expenses, resulting in an average medical expense of Rp 136 667 per person. This
average cost was then multiplied by 30% of the total population of 983 people, resulting in a
total medical cost incurred by the community due to decreased air quality in the form of dust
around UBPN Sultra in 2014 of Rp 40 303 000. The 30% of the village population in this
assumption represents the percentage of people who suffer from illness.
b. Loss of Income Due to Illness
Based on the results of the study, 26.67% of 30 respondents (8 respondents) did not
work due to illness in 2014. The loss of respondents' working time affects the income
received. Loss of income respondents were estimated from the number of days away from
work due to illness multiplied by the respondent's income per day. The average number of
days that respondents did not work due to illness was 6 days. The respondent's income per
day is obtained from dividing the monthly salary by the number of days worked during the
month using the assumption that the number of working days per month is 25 days.
The total income lost due to respondents not working due to illness was Rp 3 360 000
with a minimum income of Rp 40 000, as shown in Appendix 8. The average income lost due
to illness was obtained by dividing this amount by the number of respondents not working
due to illness, namely 8 people, resulting in an average value of Rp 420 000 per HH. This
average loss was then multiplied by 26.67% of the total population of 250 households. Table
30 shows that the total income lost due to illness as a result of air quality degradation in the
6.2.4 Cost of Prevention Society
In addition to medical expenses, the community incurs costs to avoid getting sick from
the decline in air quality due to dust around UBPN Sultra. The costs incurred by the
community are in the form of costs to buy masks. Based on the results of the study, 26.67%
of the 30 respondents (8 people) spent money to prevent illnesses such as coughing, and
asthma.
The total cost of preventing illness incurred by respondents was IDR 105 000, which
can be seen in Appendix 9. The average cost was obtained by dividing the total cost by the
number of respondents who incurred the cost, which was 8 people, resulting in a value of
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IDR 13 125 per person. This value was then multiplied by 26.67% of the village population
which amounted to 983 people, the total value of community prevention costs is Rp 3 440
500, can be seen in Table 31.
Based on the data presented, the estimated environmental costs incurred by the
community and the company as a result of nickel mining activities in UBPN Sultra are
obtained from the total cost of sedimentation prevention, dust control costs, and public health
costs, and prevention costs incurred by the community. It can be assumed that the estimated
environmental impact felt by the community and the government is the sum of the
environmental costs incurred by the community and the company.
In Table 32, it can be seen that the largest environmental costs were incurred by UBPN
Sultra, which amounted to 93.77% of the total environmental impact value of Rp 2 017 821
778.13. The total expenditure of the UBPN Sultra company as an environmental impact of
UBPN Sultra nickel mining activities is Rp 1 946 078 278.13 (96.44%). This value is
obtained from the total sedimentation prevention costs and dust control costs in 2012 that
have been converted using the compounding method to current values. Total community
expenditure amounted to Rp 71 743 500.00 (3.56%) of the total environmental impact value.
From these results it can be seen that the largest environmental costs are incurred by UBPN
Sultra for sedimentation prevention and dust control costs.
The percentage of estimated environmental costs incurred by UBPN Sultra and the
community compared to UBPN Sultra's revenues and expenditures and the Gross Regional
Domestic Product (GRDP) of Southeast Sulawesi Province can be seen in Table 33.
The percentage can show the proportion of the magnitude of the environmental impact
of nickel mining activities on the company and the GRDP of Southeast Sulawesi Province.
The amount of company revenue obtained from the calculation in Appendix 1 and the amount
of company expenditure obtained from the calculation in Table 24. GRDP of Southeast
Sulawesi Province based on constant 2000 prices in 2013 was Rp 15 040 860 000 0006 .
ANTAM (Persero) Tbk. UBPN Sultra and the community incur environmental costs
every month. Based on data from the Pomalaa Community Health Center, the number of
people who underwent treatment at the health center due to ARI disease during 2012 was 108
people. With an average medical cost of Rp 48 889 per person for one visit to the health
center.
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6.2.6 Benefits of Artificial Beach from Waste Slag
Nickel processing activities into ferronickel produce tailings rock waste (slag). This
slag waste is then utilized by UBPN Sultra to build a tourist attraction in the form of an
artificial beach generated from the slag. a mixture of slag fill and soil. This artificial beach
was built in 2004 and opened to the public in 2006 with the name Harapan B e a c h .
Harapan Beach Tourism Object is located in the complex of PT ANTAM (Persero)
Tbk.UBPN Sultra. Administratively, this tourist attraction is included in the area of Pomalaa
Village, Pomalaa District, Kolaka Regency, Southeast Sulawesi Province. The location of
this tourist attraction is adjacent to the port owned by PT ANTAM (Persero) Tbk. and ports
owned by other private mining companies. This tourist attraction which is different from
other beach tourism in Kolaka Regency was deliberately built by PT ANTAM (Persero) Tbk.
UBPN Sultra as a recreational facility for the community. Harapan Beach Tourism Object
was built in the coastal area near the employee housing complex which was initially not
utilized for any activities. The community around UBPN Sultra before the construction of
Pantai Harapan could not enjoy the beauty of nature easily because it was covered by
employee housing and the absence of any activities access road to the beach.
The area of Pantai Harapan tourist attraction is 2 hectares with an entrance road along 1
kilometer that juts into the sea. The main attraction of this tourist attraction is the seawater
bathing pool which consists of two children's bathing pools and one adult bathing pool. The
children's bathing pool is up to one meter deep and the adult bathing pool is up to five meters
deep. In addition to these bathing pools, Harapan Beach has the attraction of natural scenery
in the form of sunset which can be seen at the west end of Harapan Beach. The uniqueness
that is not owned by other beaches is the expanse of slag waste which is one of the hoarding
materials so that Harapan Beach is formed.
Along the entrance to Harapan Beach, UBPN Southeast Sulawesi planted mangrove
trees to break the waves and prevent coastal abrasion. In the middle of the mangrove trees, a
colorful wooden bridge was built that visitors can use to walk around the mangrove trees. In
this tourist area there are also supporting facilities such as two toilets and three bathrooms,
one changing room, a tribune next to the adult bathing pool, one lodge, and a large pavilion
complete with a swimming pool sound devices. The management also always maintains the
security and cleanliness of tourist sites well, providing patrol officers and adequate trash bins
so that visitors always feel safe and the cleanliness of the tourist area is maintained.
UBPN Sultra does not set an entrance fee for visitors because the initial purpose of the
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Harapan Beach development is for the benefit of the community and as a means of getting
closer between the company and the community. Access to this Pantai Harapan tourist
attraction can be said to be very easy because there are no other obstacles such as damaged
roads or road repairs, all types of vehicles can enter until the parking lot located in the
seawater bathing pool area. This easy access is thought to have an effect on people's desire to
recreate at this tourist attraction.
Based on this research, it can be seen that all visitor respondents come from Kolaka
Regency. Most of the visitor respondents came from Pomalaa Sub-district, where this tourist
attraction is located, which is 80% of the total 40 respondents (32 people), due to easy access
and close distance to Pantai Harapan tourist attraction. Other visitor respondents came from
Baula sub-district, Wundulako sub-district, and Mowewe sub-district.
The distance from each village to this tourist attraction varies. Most respondents
traveled less than one kilometer, as many as 35%. These respondents mostly came from
Pomalaa Village and Kumoro Village, which is a housing complex area for UBPN Sultra
employees.
The distance traveled by visitors to get to the location affects the travel time spent by
visitors. Respondents who took less than 5 minutes to get to the location were 37.5% of the
total 40 respondents. This is thought to be influenced by the close distance and also roads that
are free of obstacles, such as traffic jams or damaged roads. Respondents who visited
Harapan Beach mostly visited as many as
1 to 8 times in the year of the research due to the proximity of the tourist attraction and easy
to reach. Respondents who visited Harapan Beach 1 to 8 times a year amounted to 52.5% of
40 respondents (21 people). Even 35% of respondents (14 people) visit Harapan Beach more
than 25 times a year. The average visit from each visitor for one year is 27 visits.
The existence of this tourist attraction also attracts food vendors to sell in this area.
Based on the research, there are only 3 traders with their respective types of merchandise who
trade every day at Harapan Beach, namely skewered meatball traders, boiled corn traders, and
dumpling traders. Visitor respondents who incurred consumption costs at the tourist attraction
location amounted to 37.5% of the total 40 respondents (15 people). The cost of consumption
at the location of this respondent is a revenue for local traders. From the results of the study,
it was found that the respondents' consumption costs at tourist sites amounted to Rp 260 000
in one study period. The cost of consumption at this location was then divided by the number
of respondents who incurred consumption costs, namely 15 people, so that the amount of
consumption expenditure at the location averaged Rp 17 333.33 for one visitor per visit. The
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assumption of merchant revenue from one visitor in a year can be seen in Table 35.
Visitor consumption costs at tourist sites are included in the travel costs incurred by
visitors to Pantai Harapan tourist attraction. Travel costs are all costs incurred during
recreation to tourist attractions, which consist of transportation costs and consumption costs,
both consumption costs at the location and consumption costs brought from home. Visitors to
Pantai Harapan tourist attraction are not charged other fees by the manager to use the
facilities that have been provided, except for the use of a large pavilion facility that is
complete with sound equipment and can be used for the public karaoke. To be able to use this
pavilion, visitors are charged a one-day rental rate of Rp 250 000.
Recreation costs incurred by respondents, including transportation costs, on-site
consumption costs and consumption costs brought from home, ranged from Rp 4 500 to Rp
59 500 per person with an average of Rp 22 763 per person per visit. The largest group of
respondents spent between Rp 25 500 and Rp 36 000, 35% of the total number of
respondents.
With adequate facilities, there are bathing pools for adults and children as well as
stands and pavilions to relax and enjoy the natural scenery, Harapan Beach is visited by
groups of families with small children and groups of people who spend time relaxing at
Harapan Beach. Respondents came mostly with groups of friends as much as 57.5%.
Respondents who came with a group mostly came with friends and family, as shown in
Table 38. The number of visitors in a group varied, most visited with a group of 1-4 people,
which amounted to 47.5% of the total 40 respondents. In general, recreational activities at
tourist attractions will be more fun when done together with other people, both friends and
family. The proportion of the number of groups of visitors to Pantai Harapan tourist attraction
can be seen in Table 41.
Visitors must use private vehicles to reach the location of the tourist attraction, because
there is no public transportation to Pantai Harapan. The type of vehicle used by visitors to
Pantai Harapan tourist attraction is closely related to the number of groups. Most visitors
come with groups that use private vehicles in the form of two-wheeled motorbikes, which is
65%. The type of two-wheeled motorized vehicle is widely used as a choice of transportation
for visitors because the location is close and the road is not too wide, and most respondents
do not have private vehicles in the form of cars.
Pantai Harapan tourist attraction has a tourist attraction in the form of a sea water
bathing pool, natural scenery in the form of sunsets and a unique experience when visiting it
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because this beach was built using slag waste. The purpose of the respondents' visit was
mostly to relax and enjoy the atmosphere and scenery, which amounted to 42.5%. Apart from
weekends, Pantai Harapan tourist attraction is increasingly crowded with visitors in the
afternoon to enjoy the natural scenery.
The location of the tourist attraction is easily accessible and close, and there is no
entrance fee to make visitors from the surrounding area travel to Harapan Beach.
Respondents of visitors to this Pantai Harapan tourist attraction as much as 52.5% have
known the existence of this tourist attraction since 6 to 8 years ago. This shows that most
visitors have known the existence of Pantai Harapan tourist attraction since it was built 8
years ago, precisely in 2004.
The existence of Pantai Harapan tourist attraction provides a new alternative for people
who want to recreate, either alone or with a group, with easy access and adequate facilities.
The beautiful sunset view and the stretch of mangrove plants along the road provide natural
beauty at Harapan Beach. The existence of this tourist attraction also provides economic
benefits for traders who sell food for visitors at the location.
Harapan Beach tourism object can be developed into alternative tourism that can attract
more tourists from a wider area. The management of Pantai Harapan, which is currently held
by PT ANTAM (Persero) Tbk, can be developed by involving the community and
community organizations such as youth organizations to participate in managing the tourist
attraction. Community participation in managing Pantai Harapan will increase community
awareness of the existence of this tourist attraction and can bring the community closer to the
company, as was the original purpose of the development of Pantai Harapan.
The community and UBPN Sultra can work together to create an entrance ticket system
that can then be used for tourism development purposes Ticket prices can be adjusted to other
tourist attractions in Kolaka Regency. Improving services and services for visitors to Pantai
Harapan can be done by providing a place to rent buoys or tires, providing a place to sell food
and drinks for visitor consumption, and providing parking guards so that visitors feel safer
leaving their vehicles while traveling. Good cooperation between UBPN Southeast Sulawesi
and the community for the management of Pantai Harapan tourist attraction can then make
this tourist attraction a more attractive tourist destination.
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CONCLUSIONS:
Based on the results of the research and discussion, the following conclusions are
obtained:
1. Nickel mining activities of PT ANTAM (Persero) Tbk. UBPN Sultra has an economic impact
on the company and the community. Business income for UBPN Sultra is Rp 223 584 708
876.29. Local labor absorption from Southeast Sulawesi Province is 0.809%. Infrastructure
improvements made by UBPN Sultra for the benefit of the surrounding community amounted
to Rp 25 991 714 505.28. The value of the Type I Income Multiplier Ratio is 1.34, indicating
that every one rupiah increase in UBPN Sultra revenue will result in an increase of 1.34
rupiah to the income of the community and local labor in UBPN Sultra.
2. Nickel mining activities of PT ANTAM (Persero) Tbk. UBPN Sultra has an impact on the
environment in the form of sedimentation and air pollution through dust. The estimated total
loss experienced by the company from these environmental impacts with the prevention cost
approach is Rp 1 946 078 278.13. The estimated total loss experienced by the community
around UBPN Sultra from environmental impacts due to nickel mining activities with the
approach of health costs and prevention costs is Rp 71 743 500. The total estimated
environmental impact is Rp 2 017 821 778.13.
3. The use of slag waste to create an artificial beach named Pantai Harapan provides an
alternative tourism for the community around UBPN Sultra. The emergence of economic
activity from the presence of food vendors and travel costs incurred by tourists can provide
new economic benefits for the community.