THE IMPACT OF TIN METAL POLICY IN INDONESIA ON ADDED VALUE, SOCIAL, AND GOVERNMENT REVENUE: AN APPLICATION OF THE SOCIAL ACCOUNTING MATRIX (SAM)

• Main Author: Anggraeni, Charina
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/87915
• Institution: Institut Teknologi Bandung

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.