REGULATING INDUSTRIAL STRATEGY FOR INDONESIA MINING COMPANY

The purpose of this research is determine the differences of financial performance, investing activity, and market performance of mining companies due to announcement of Law of Republic of Indonesia Regarding Mineral and Coal Mining. This research picks 33 public mining companies as samples based on purposive sampling method with several criteria. Method of hypothesis testing uses multivariate analysis of variance (manova), analysis of variance (anova) and Kruskal Wallis test with three groups of periods, which are before, as at, and after the announcement of Law of The Republic of Indonesia Regarding Mineral and Coal Mining. The results show that there is no significant difference of company’s current ratio, working capital turnover ratio, debt to asset and return to asset ratio before, as at, and after the announcement of Law of The Republic of Indonesia Regarding Mineral and Coal Mining. Furthermore, there is no significant difference of company’s investing activity ratio before, as at, and after the announcement of Law of Republic of Indonesia Regarding Mineral and Coal Mining. The market performance test shows interesting result that the abnormal return before the announcement of Law of Republic of Indonesia Regarding Mineral and Coal Mining is significant higher than after