Indonesian Government Policy in Increasing State Revenue Through Raw Material Export Prohibitions

Abstract

Purpose: To increase state income and revenues by prohibiting the export of raw materials, especially mining and mineral materials, by converting raw materials into semi-finished or finished materials so that added value can be added.
  
 Method: This study uses normative legal research which examines the policies of the Indonesian government as outlined in Law No. 4 of 2009 concerning Minerals and Coal, which prohibits raw mining and mineral materials from being exported abroad. The research approach is through a qualitative juridical approach, namely by examining it from a legal standpoint as well as providing explanations related to the ban on the export of minerals and minerals.
  
 Results and Conclusions: The policy of prohibiting the export of raw mining and mineral materials generates greater state income and revenue, because it gets a large added value by imposing high taxes, and also opens up employment opportunities and reduces unemployment in Indonesia.
  
 Research implications: The Indonesian government's policy of prohibiting the export of mineral and mineral raw materials raises pros and cons in the country, but the Indonesian government remains adamant that this policy is to increase state revenues and revenues, added value and employment. Overseas, the government's policy of banning the export of mineral and mineral raw materials is opposed by the United States and the European Union because it will harm them as importers of mineral and raw materials from Indonesia
  
 Originality/value: Importing countries of mining and mineral raw materials such as China, the United States and Europe have established mining and mineral raw material (Smelteer) processing companies in Indonesia.