THE IMPACT OF TIN METAL POLICY IN INDONESIA ON ADDED VALUE, SOCIAL, AND GOVERNMENT REVENUE: AN APPLICATION OF THE SOCIAL ACCOUNTING MATRIX (SAM)
Indonesia, as the country with the second-largest tin reserves in the world, plays a crucial role in the global tin industry, contributing 17% to global tin production. However, the domestic tin industry faces several challenges, including reliance on imports of high-value-added products such as...
Saved in:
| Main Author: | |
|---|---|
| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/87915 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Indonesia, as the country with the second-largest tin reserves in the world, plays a
crucial role in the global tin industry, contributing 17% to global tin production.
However, the domestic tin industry faces several challenges, including reliance on
imports of high-value-added products such as tin solder and tin plate, while exports
are predominantly composed of refined tin. In accordance with the mandate of Law
No. 3 of 2020 and Government Regulation No. 96 of 2021, the government requires
the processing and refining of minerals domestically to maximize added value,
provide raw materials for local industries, and enhance state revenue.
Nevertheless, the implementation of this policy remains suboptimal.
To support these objectives, this study aims to analyze the impact of tin-related
policies on increasing added value, social income, and government revenue. The
study compares three (3) scenarios: the existence of tin exports under current
conditions (Scenario 1), the implementation of export restrictions accompanied by
an increase in domestic smelting capacity (Scenario 2), and the enforcement of
export restrictions without an increase in domestic smelting capacity (Scenario 3).
The Social Accounting Matrix (SAM) method is employed to model the relationships
between economic sectors, households, and the government, as well as to illustrate
the flow of income and expenditures within the economy. The analysis results
indicate that Scenario 2 is the optimal scenario, as it promotes the development of
the domestic downstream tin industry to meet the growing domestic market while
maintaining export revenues, albeit at a reduced level. This scenario strikes a
balance between downstream industry development and export earnings,
generating positive economic impacts for Indonesia. |
|---|