The influence of the Indonesian Coal Index (ICI) price and labor through coal production on coal sales

This study aimed to examine the impact of Indonesian Coal Index (ICI) prices and labor on coal sales through coal production at PT. Victor Two Three Mega. A quantitative method with a correlational approach was employed for this research. Secondary data was collected and analyzed using SPSS version 29 and Microsoft Excel software, employing a path analysis model to represent latent variables. Classic Assumption tests were conducted to ensure the accuracy, unbiasedness, and consistency of the regression equation obtained. The Coefficient of Determination (R2) was utilized to gauge the degree of relationship, while Multiple Regression Analysis was employed to ascertain the relationship between various variables and predict outcomes. The findings indicate that the Indonesian Coal Index (ICI) price does not have a direct impact on coal sales, whereas labor demonstrates a direct effect on both coal sales and production. Additionally, the Indonesia Coal Index (ICI) price does not exert an indirect influence on coal sales through coal production, while labor exhibits an indirect effect on coal sales through coal production.


Introduction
Coal mining is a crucial energy reserve for human life, representing an available energy source that must be preserved and is a necessity for quality storage.Several factors influence the coal production process, including highly skilled and competitive human resources in the field, which are essential for the sustainability of mining operations in Indonesia.PT.Victor Dua Tiga Mega is a coal mining company with an IUP area of 3,464 hectares.PT.Victor Dua Tiga Mega produces coal with concentrations ranging from 5,200 GAR to 6,200 GAR in the medium to high-calorie groups.Coal is sold abroad as part of the international market.
Coal production during the COVID-19 pandemic, specifically in the first quarter of 2020, continued to decline due to the influence of government regulations and difficulties in managing work hours in the field, implementing social distancing, local isolation, and working from home (WFH).According to Prijono et al. (1992), coal is a solid hydrocarbon fuel formed from plants without oxygen and subjected to high temperatures and pressures for a very long time.According to Law Number 4 of 2009 Article 1 paragraph (3), in the field of mineral and coal mining, coal is a deposit of organic carbon compounds formed naturally from plant remains.Meanwhile, in another definition in the KBBI, coal is charcoal taken from soil, water, and other plants that have turned into stone.
Based on the Regulation of the Director General of the Department of General Mining and Coal Number 515.K/32/DJB/2011 concerning the Determination Formula of Coal Benchmark Prices Article 1 Paragraph 4, the Coal Benchmark Price, abbreviated as HBA, is a coal reference price, the average coal price index of the previous month.The Indonesian government has decided that the Coal Reference Price (HBA) will be used to determine the basic coal price.HBA is calculated based on the average consisting of the Indonesian Coal Index (ICI), Newcastle Export Index (NEX), and Global Coal Newcastle Index (GCNC).The government uses HBA to calculate non-tax state revenue (PNBP) in the form of royalty payments.
The improvement of company performance will affect the desired coal production for sale, and production goals have a significant influence on company performance, especially in this sector.The steps to improve performance, particularly through coal sales, can be seen from the current coal sales results.For good sales results to be sustainable in an unstable business environment, especially during the COVID-19 pandemic and domestic and international stability, the desire to increase sales is the most serious management challenge because success in achieving goals and business sustainability depends on the ups and downs of coal sales.Mulyadi (2010) defines sales as an activity that includes selling goods or services, either on credit or cash.This research will examine how the Indonesian Coal Index (ICI) and labor if through Coal Production, affect Coal Sales at PT. Victor Dua Tiga Mega is a coal mining company in Indonesia.

Theoretical background and hypothesis
The Indonesia Coal Index (ICI) Current coal sales are determined by both domestic and international markets, with different reference prices serving as the basis for domestic and foreign sales.Indonesia is a major coal producer in Asia, one of the main export products, and currently the largest in the world, due to various calorific types needed by factories for fuel and required for various support needs for human life's welfare.Therefore, separate benchmark coal prices are needed in the Asia-Pacific region.
The government's role in determining the Coal Reference Price (HBA) is to generate revenue through Non-Tax State Revenue (PNBP) through royalty calculations to be charged to miners, both PKP2B and private IUPs producing coal.Therefore, the Government-regulated Coal Price Standard refers to several global coal reference prices, including the Indonesian coal index (ICI), Newcastle export index (NEX), and Global Coal Newcastle (GCNC).

Labor
In the realm of human resources, a critical area of focus is labor management; effective workforce management yields superior human resources in the workplace.Training and development of labor are necessary to meet higher professional competition for business sustainability.Currently, advancing technology support can increasingly replace human labor in more comfortable jobs and bring about rapid and optimal efficiency.
In the mining industry, the multitude of heavy equipment powered by renewable technology poses a challenge for Indonesian labor, as apart from training aspects, it also serves as an anticipation for workplace accidents, negligence in training, and orientation in the use of new heavy equipment.Inability to master technology can have fatal consequences in the mining industry.Therefore, our employees require training support with a primary focus on workplace safety.According to Alam (2014), the workforce includes individuals aged between 17 and 60 years working in the private sector.According to Hamzah (2014), labor refers to workers who have internal and external work relations with the main production tools in the production process, both materially and spiritually.

Coal Production
In Indonesia, coal is abundantly available.This abundance leads to an increasing number of coal users, required by many individuals and industries.Coal is not only needed by power plants and industries; it also holds numerous benefits for human life.Some everyday benefits of coal include its use as a source of electricity-generating energy, a daily necessity for society.Additionally, to produce gas products, natural gas can be extracted from coal still underground.Another benefit in everyday life is its contribution to household needs; coal in the form of briquettes can be utilized as an alternative fuel source in households.
The study by Wijaya et al. (2020) indicates how the annual increase in coal production affects the volume of coal trains transported by PT.KALOG is steadily increasing.This increase results in the current insufficient handling equipment to cope with the growing demand, consequently impacting the poor performance of loading and unloading, as evidenced by the short waiting times for trains.

Coal Sales
The coal produced by PT.Victor Dua Tiga Mega is raw thermal coal and has not yet reached the stage of finished goods or ready-to-use fuel, which is generally the case in Indonesia.Therefore, the current government provides incentives with a 0% royalty for mining companies capable of investing their coal into finished goods such as gas, ethanol, and others using various techniques that require feasibility studies and environmental impact assessments beforehand, tailored to the conditions on the ground.
The results of thermal coal and downstream processing differ significantly in terms of sales.We can sell directly to end-users without the need for further processing.Coal sales in Indonesia in 2022 (last year) increased dramatically due to the influence of the international economic stability affected by the war between Russia and Ukraine, which heightened demand from European regions.This significantly impacted coal sales in Indonesia.
Sales are the backbone of the company's success in improving performance and maximizing profits.We can capitalize on the Russia-Ukraine war situation to maximize sales; in other words, while prices are high, production and sales must be increased accordingly.

Hypotheses
H1: There is a direct influence of the Indonesia Coal Index price on coal sales.H2: There is a direct influence of labor on coal sales.H3: There is a direct influence of the Indonesia Coal Index price on coal production.H4: There is a direct influence of labor on coal production.H5: There is a direct influence of coal production on coal sales.H6: There is a direct influence of the Indonesia Coal Index price on labor.H7: There is no indirect influence of the Indonesia Coal Index price on coal sales through coal production.
H8: There is an indirect influence of labor on coal sales through coal production.

Methodology
The research methodology employed in this study is a quantitative method with a correlational approach.The population of this research is PT.Victor Dua Tiga Mega.PT.Victor Dua Tiga Mega is a coal mining company covering an area of 3,464 hectares located in Luwe Hulu village, Lahei district, North Barito regency, Central Kalimantan province.The research sample consists of data collected over the past 5 (five) years, including coal price data through the Indonesia Coal Index (ICI), employee count data, coal production performance data, and coal sales data from PT. Victor Dua Tiga Mega.
Data sources encompass all entities providing information about the data.Secondary data refers to data collected not for the intended purpose of problem resolution.This data can be readily found.In this research, the secondary data source is PT.Victor Dua Tiga Mega's documents, such as reports on the Indonesian Coal Index (ICI) prices, employee count reports, production reports, and coal sales reports, are readily available as comprehensive reports.The utilization of SPSS version 29 software aims to streamline data processing, leading to quicker and more accurate results.The initial step involves gathering secondary data.Subsequently, the second step entails data processing in Microsoft Excel software utilizing the Correl function to facilitate the creation of supportive alternative analysis tables containing the necessary volume analysis required for the research.
Multiple regression analysis is one statistical technique frequently employed to examine the relationship between several variables and predict a variable.In this study, to obtain the results of regression analysis, data is processed using SPSS version 29 software.

Hypothesis Testing
Partial hypothesis testing is conducted to determine the influence of the Indonesian Coal Index Price and Labor Force on Coal Sales through Coal Production.If the significance value is < 5% (0.05), then the alternative hypothesis (Ha) is accepted.Additionally, it can also be observed from the comparison between the calculated t-value and the tabulated t-value; if the calculated t-value > tabulated t-value, then the hypothesis can be accepted.Based on the analysis results above, the following conclusions can be drawn: After conducting hypothesis testing for the aforementioned research and based on the calculation results from SPSS 29, the variable P-value Indonesian Coal Index (ICI) Price is 0.170, which is greater than the significance level of 0.05 (0.170 > 0.05).Therefore, it can be concluded that H0 is accepted and Ha is rejected, indicating that there is no significant influence between the Indonesian Coal Index Price and Coal Sales.
After conducting hypothesis testing for the aforementioned research and based on the calculation results from SPSS 29, the variable P-value Labor is 0.001, which is smaller than the significance level of 0.05 (0.001 < 0.05).Therefore, it can be concluded that H0 is rejected and Ha is accepted, indicating that there is a significant influence of the Labor Force on Coal Sales.
After conducting hypothesis testing for the aforementioned research and based on the calculation results from SPSS 29, the variable P-value Coal Production is 0.002, which is smaller than the significance level of 0.05 (0.002 < 0.05).Therefore, it can be concluded that H0 is rejected and Ha is accepted, indicating that there is a significant influence of Coal Production on Coal Sales.Based on the analysis results above, the following conclusions can be drawn: After conducting hypothesis testing for the aforementioned research and based on the calculation results from SPSS 29, the variable P-value Indonesian Coal Index (ICI) Price is 0.004, which is smaller than the significance level of 0.05 (0.004 < 0.05).Therefore, it can be concluded that H0 is rejected and Ha is accepted, indicating that there is a significant influence of the Indonesian Coal Index Price on Coal Production.
After conducting hypothesis testing for the aforementioned research and based on the calculation results from SPSS 29, the variable P-value Labor is 0.006, which is smaller than the significance level of 0.05 (0.006 < 0.05).Therefore, it can be concluded that H0 is rejected and Ha is accepted, indicating that there is a significant influence of the Labor Force on Coal Production.Based on the analysis results above, it can be concluded that after conducting hypothesis testing for the aforementioned research and based on the calculation results from SPSS 29, the variable P-value Indonesian Coal Index (ICI) Price is 0.000, which is smaller than the significance level of 0.05 (0.000 < 0.05).Therefore, it can be concluded that H0 is rejected and Ha is accepted, indicating that there is a significant influence of the Indonesian Coal Index Price on the Labor Force.Based on the analysis results above, it can be concluded that after conducting hypothesis testing for the aforementioned research and based on the calculation results from SPSS 29, the variable P-value is 0.199, which is greater than the significance level of 0.05 (0.199 > 0.05).Therefore, it can be concluded that H0 is accepted and Ha is rejected, indicating that there is no indirect influence between the Indonesian Coal Index Price and Coal Sales through Coal Production.Based on the analysis results above, it can be concluded that after conducting hypothesis testing for the aforementioned research and based on the calculation results from SPSS 29, the variable P-value is 0.014, which is smaller than the significance level of 0.05 (0.014 < 0.05).Therefore, it can be concluded that H0 is rejected and Ha is accepted, indicating that there is an indirect influence of the Labor on Coal Sales through Coal Production partially.

Discussion
The Indonesia Coal Index price does not have a direct effect on coal sales, meaning that the high or low Indonesia Coal Index price will not affect coal sales.Labor has a direct effect on coal sales, indicating that an increase in coal sales will result in the company recruiting more workforce.
The Indonesia Coal Index price has a direct effect on coal production, meaning that an increase in the Indonesia Coal Index price will lead the company to increase coal production.Labor has a direct effect on coal production, meaning that an increase in coal production will result in the company seeking a larger workforce.Coal production has a direct effect on coal sales, meaning that an increase in coal sales will result in an increase in coal production.
The Indonesia Coal Index price has a direct effect on labor, meaning that an increase in price will increase production, which will significantly impact the increased need for labor required by the company.The Indonesia Coal Index price does not have an indirect effect on coal sales through coal production, meaning that the Indonesia Coal Index price is unable to increase coal sales through coal production.Labor has an indirect effect on coal sales through coal production, meaning that labor can increase coal sales with coal production as a mediating variable.

Conclussion
Based on the hypothesis testing results related to the research problem and objectives, the following conclusions can be drawn: The Indonesia Coal Index price does not have a direct influence on coal sales, meaning that price changes do not significantly affect the sales level.
Labor has a direct influence on coal sales, indicating that an increase in coal sales can trigger an increase in workforce recruitment.The Indonesia Coal Index price has a direct influence on coal production, implying that price increases can drive production increases.Labor has a direct influence on coal production, indicating that increasing coal production requires an increase in the workforce.Coal production has a direct influence on coal sales, suggesting that increased production can have a positive impact on sales.The Indonesia Coal Index price has a direct influence on labor, indicating that price changes can affect labor needs.The Indonesia Coal Index does not have an indirect influence on coal sales through coal production, indicating that price changes do not indirectly affect sales through production.Lastly, labor does not have an indirect influence on coal sales through coal production, implying that the role of coal production as a mediating variable in the relationship between labor and coal sales is not significant.

Suggested
The analysis of this research will provide significant benefits for PT.Victor Dua Tiga Mega.The empirical study findings suggest several strategic steps.Firstly, the company should not only rely on the increase in the Indonesia Coal Index price to boost sales but also ensure balanced revenue streams.Secondly, increasing coal sales can help improve the quality of human resources within the company.Thirdly, controlling production costs needs to be enhanced to prevent the selling price of products from being too high compared to the Indonesia Coal Index price.Fourthly, increasing coal production will positively impact labor requirements.Fifthly, continuously improving coal sales will drive an overall increase in coal production.Sixthly, maintaining control over labor costs is necessary to keep coal sales prices competitive compared to the Indonesia Coal Index price.Seventhly, using the Indonesia Coal Index price as a policy basis for evaluation can help enhance coal sales.Lastly, efforts to reduce production costs can increase profits from coal production and sales overall.By following these suggestions, it is hoped that PT.Victor Dua Tiga Mega can enhance its performance and profitability in the coal market.

Table 1 .
The Operational Definitions

Table 5 .
The Result Test Indonesian Coal Index Price and Coal Sales through Coal Production

Table 6 .
The Result Test Labor Force on Coal Sales through Coal Production