AbstractThis study endeavors to examine the complex correlation between industrial mining policy (IMP), firm business performance (FBP), and innovation (IN). A positivist approach is employed in this research, utilizing a cross-sectional survey to gather primary data. The collected data is subjected to quantitative analysis using partial least squares structural equation modeling (PLS-SEM). The specific focus of this investigation centers around Indonesian mining firms possessing mining business permits (IUP), with a total sample size of 385 respondents who participated in the survey. The findings indicate all constructs and dimensions are categorized as substantial and have predictive relevance because they have a value of R2 _ 0.75 and Q2 _ 0. This study also demonstrates that innovation acts as a mediator between the industrial mining policy and firm business performance, since the path coefficient of the indirect effect of IMP _ IN _ FBP (0.496) is higher than the direct effect of IMP _ FB.....