Indonesia is one of the largest coal exporters with about 25 % share in the world market. It is predicted that as the coal and oil price increased, the export volume would continue to increase. Government had a policy to secure self-energy sufficiency which meant that all power plants and related industries might have enough supply. However, the decreasing of coal price in 2012-2015 caused by the expansion of shale production and the increasing of international clean energy campaign, led decreasing of EBIT’s coal company and the value of stock. This study aimed to investigate the impact of external and internal factors on financial performance and stock return of coal companies listed in Indonesia stock exchange. Simultaneous equations model was constructed and estimated using 2SLS (Two Stage Least Squares) method. Annual data panel of seven coal mining companies from 2012 up to 2017 were utilized.
In general, every year the value of coal export sales from seven companies was higher than the value of domestic sales, because the export selling price was always higher than the domestic selling price so that coal companies tend to choose coal exports abroad. This happened because in the implementation there was no sanction for the company if not follow the DMO scheme.
The simulation result showed that international coal price decrease had a largest impact on EBIT, PAT, and EVA; while depreciation of Rupiah currency had a big impact on MVA and stock return. Reduction of cost of revenue and operational and general/administration expense were the actions on internal factors to eliminate the impact due to external factor changes. In the condition of international coal prices fell 15% and the rupiah exchange rate against the USD depreciated 10% then these conditions were anticipated by lowering income costs as well as general and administrative expenses by 20%, impacting the improvement of the financial performance of coal companies namely increase in profit (LB), increase in EBIT, PAT respectively 3,276%, 7.59 %, 16.26 %. It also has an impact on the increase in the value of EVA as much as 17.38 %, but this anticipatory action could not improve the MVA value and stock return
