THE INFLUENCE OF POLICY ON SMELTER DEVELOPMENT PROJECTS ON IMPROVING PROJECT TIME PERFORMANCE

To facilitate downstreaming in mining industry, the law requires holders of Mining Business Permits (IUP) and Work Contracts (KK) to establish smelters, namely mining processing facilities that function to increase metal content to a level that meets standards as raw materials for final products. From the policy factors found that policy has a role in the problem of delays in smelter construction in Indonesia. Therefore, evaluation and improvement of regulations as a solution to the problem need to be carried out so that smelter construction as an effort to implement mining downstreaming can be implemented properly. The study was conducted by collecting qualitative primary data which was analyzed using Structural Equation Modeling (SEM). In the relationship between policy variables and project time performance variables, Variable X3 Supervision and Variable X6 Force Majeure has a significant effect on the project time performance variable, while other variables do not have a significant effect.