Political Economy Perspective on Social Development: Case Study of Rent-Seeking on Rice Import Policy and Coal Mining Policy in Indonesia

Abstract

Wahyu Riawanti and Bambang Arwanto

The research is aimed to reveal the prominent issue of rent-seeking on Indonesian Public Policy. The study emphasizes in intersets on food and mining sector. The political interset of policy is described by patterns of the rent-seeking activity through different regulation in bothe sectors. Answered the hypotheses as followed: (1) government elites are the main actors and they are mostly the policy makers from food institution, (2) the actors came from different political party and bring about the different agenda to be supported with regulation, and (3) food institution determined the rent-seeking activity through the same actors that dominate import. The important evidence of this point was the “three pairs of name” that affiliated with political party, importers and also influenced the regulation. Meanwhile result on rent-seeking practices in coal mining policies notify four different sectors and institutions, namely: (1) Mining and energy sector policies in order to enforcing tenders in coal mining permits that causing rent seeking practices in the process of issuing coal mining permits. (2) Forestry sector policy, where the measurement of boundaries for forestry areas are still easily manipulated for the benefit of rent seeking (3) Industry and trade sector policy that using surveyor reports and data manupulation. (4) Financial sector policy should carrying out the development of the digitization of the non-tax state income management system between related ministries and institution.

PDF