Bumi PLC Mining Company


Bumi Plc Mining company is one of the major groups involved in mining. The company is listed in London Stock Exchange and based on Indonesia. Bumi Plc has expanded its tentacles to other directions also and it has now 85% holding in Berau Coal and a 29.2% holding in Bumi Resources, which owns 87% of Bumi Resource Minerals (Bumi).
PESTEL Analysis
Science, technology and society (STS) is embedded in a complex and interwoven plethora of relationships around a wide and dispersed field of interdisciplinary and disciplinary approaches to the domains of science and technology. Theories under STS are varied and extensive because of the differences in the phenomena to be evaluated and the factors/actors that are involved in each process.    
            PESTLE is a large-scale albeit a comprehensive means of envisioning multifaceted interrelationships such as mining and its impact on the society. While several theories have attempted to provide a structure for analysis, PESTLE became a popular framework that resolves the limitations of most theories on mining and organizational innovation which is to adequately elucidate the interwoven relationships between them. With the help of PESTLE analysis tool, we can analyze the political, Social, Technological, Legal and Environmental factors of Bumi Plc mining company
Political
            Politics, has affected the success and growth of mining business by affecting the decision-making processes as revealed by the studies of decision-making. Politics in this means the political environment going around the exiting country. Information filtered by the political process is the rich information. Politics opens ways of gaining information that the formal communication setups do not offer. Politics usually involves answering questions of who gets what, when and how and sharing and allocation of resources. There are many vested interests of political parties in the public projects. Political considerations play a major role in public decisions-making processes. For example, appointments of key management personnel in any public project have more political considerations than any other (Ho, 2002).
Indonesia is a country in Asia, which is distinguished by a governance model based on development and political stability and stabilization sought economic rents. This country plays a role in migration dynamics attractor sub-regional and continental Asia. Indonesia has based its expansion on the politico-economic exploitation azimuth all rents hydrocarbon and mineral resources. The advantages offered by the environment of Indonesia are: a political and social stability, which is essential to any development, a favourable geographical environment, which gives access to a huge market and enormous potential commercial taxation of individuals and attractive companies. The Government of Indonesia fully understand and appreciate the importance of mining, which plays an important role in the economic and social development of the country.

Social

            Preoccupation with information and knowledge as an individual, organisational, and societal resource is stronger today than at any other time in history. The present world has several new dimensions relative to the mining. It can be understood as increasingly produced from beyond the organisation.
The company shows potential for rapid development as a source of economic growth. Liberalization of the sector aims to put the Indonesian mining position in Asia by improving the quality and accessibility of mining, the development of service and the establishment of a training center for these technologies.
The base country of Bumi Plc., Indonesia, has a legislative and institutional framework that organizes the exploitation of natural resources and biodiversity conservation. It consists of measures (orders, decrees and laws) national and local implementation of international conventions that Indonesia rectifies.
Technological

            The technological development of Bumi Plc. has influenced the society and environment. The steps taken by the company for technological advancement of the sector has created a favourable climate of competition among different mining companies. Universal contracts and peering agreements will continue to dominate the mining sector in many technological emerging countries of the world.
The Bumi Plc mining company has undergone significant changes associated with the evolution of technology, but also the gradual liberalization of the market. With the technological  advancement of Bumi Plc mining company the company and Indonesia becomes a hub for mining activities in Asia. Many other mining companies see the technological advancement of Bumi Plc and the mining sector as a major asset development across the region at the professional level but also for individuals.
Legal
            Indonesia has recognized the importance of mining as well as the importance of Bumi Plc mining company for the economic, social and technological development of the country and thus loosens its grip to allow operators to come into the market. Indonesia has a charter capital whose purpose is to organize an economic and legal framework favourable to foreign investors. The company believes in perfect corporate governance which helps the company to manage any risk factors associated with bad corporate governance or any unethical accounting practices. The company has recently announced that it investigates the irregularities and accounting malpractices at its Indonesian arms which results in the 14% decrease of its share value.
            Although mining and Bumi Plc has lot to offer to society and country but it is also responsible for some health hazards for the environment. Management of the Environment in Bumi Plc is under the supervision of the Minister for the Environment. To establish the strategy of environmental protection, conservation of natural resources in accordance with the recommendations of the United Nations Conference on the Human Environment held in Stockholm (Sweden) in 1972 and the Rio (1992), Bumi Plc considered that the management and protection of environment is its responsibility and it strives its utmost to fulfil it.
The exploitation of non-renewable natural resources is under the Ministry of Mines, Energy, Oil and Hydraulic Resources. Bumi Plc has also considered it its responsibility to work in accordance with the environment protection law of the government. The company has a dedicated team which monitors that environment protection is done according to the legislation of the country. The company has also planned to enhance its environmental management with the compliance of country’s legislation as well as with steps taken through its environment monitoring team.

            
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