Extractive Company Characteristics From Production Side To Profit

YOGYAKARTA Characteristics of extractive companies need to be known because this type of company is widely found in Indonesia. In general, extractive companies focus on relaxing natural resources (SDA). To increase insight, know the meaning to the characteristics of extractive companies.

The extractive term refers to the extraction activities in the Big Indonesian Dictionary (KBB) which are interpreted as external withdrawals.

In the business context, extractive companies are companies that focus on producing and utilizing raw materials taken from nature. These materials will then be processed or reproduced into a product to meet human needs.

Companies that fall into the extractive category will carry out natural resources management activities with exploration activities, take, then process them again to meet market needs. Of course, this activity cannot be separated from the company's profit search.

The characteristics or characteristics of extractive companies are quite unique. The characteristics that can be seen are as follows.

One of the most basic characteristics of extractive companies is that the search for materials is carried out by taking from nature directly. Examples of materials taken from nature such as garden products, petroleum, gas, and many more.

Extracting companies generally take products sold from nature to be produced into semi-dual materials. This means that the company does not produce the material directly to consumers. However, not all extractive companies meet this feature.

Like business, extractive companies are also profit-oriented. The company is run by the board of directors to workers. The company also holds the economic principle to provide benefits to all parties.

Indonesia as a country with a large natural wealth makes the number of extraction companies quite large and large. One example of an extractive company in Indonesia is PT Freeport. The company carries out gold mining activities as well as gold management in Papua and its surroundings.

In addition, there is also PT Krakatau Steel (Persero) Tbk. This company provides steel in Indonesia in the form of sheets to bars. This company includes Government-Owned Enterprises (BUMN).

Not only in the mining sector, but extra companies are also engaged in plantations, such as PT Bakrie Sumatra Plantations Tbk. This company processes forests to produce industrial crops such as rubber, sugar, and vegetable oil.

The existence of extractive companies in general has several benefits that can be felt by various parties, namely as follows.

Extraactive companies help a country take advantage of their natural potential for daily life. This potential will certainly have a broad impact on human life. For example, the use of coal for everyday life is as a source of electricity.

Another function of extractive company activities is to create jobs for the community. This condition will indirectly help improve the economic welfare of citizens.

The implementation of taxes on extractive companies also provides financial benefits for the country. These profits are then used for the procurement of infrastructure or other programs for the community.

That's information related to the characteristics of extractive companies. Visit VOI.ID to get other interesting information.