The Dark Side of Regulatory Economics: Evidence from the Salt Import Policy in Post-Soeharto Indonesia

Economics regulation by the state is indeed very necessary to ensure that the pursuit of profit does not conflict with social welfare. That is the reason why regulatory economics becomes really important. However, the context in this paper contradicts with the ideal substance of regulatory economics in which the government proactively provides incentives to remain entrenched monopolistic business practices while taking a dominant role in importing salt commodity through the issuance of a public policy that is more permissive and accommodating to those interests. This paper aims to describe the political dynamics in the formulation and implementation of salt import policy in Post-Soeharto Indonesia which was mainly characterized by the practice of unfair business competition. As descriptive qualitative research, this study utilized in-depth interviews, observation, document tracking, and document analysis techniques in which a number of bureaucrats, entrepreneurs, and salt farmers were used as informants to mine the data. The results of this study show that government intervention through Permendag No. 125/2015 does not reveal a pure orientation of "liberating salt commodity trade from monopolistic business practices", but to satisfy its vested interests and save the sakes of certain importers who were being the important part of its business collusion. Content imperfections, deliberate elimination of substantive obligations, facilitation of rent-seeking and monopolistic business practices, and the impartiality of the regulation’s purpose with the livelihoods of salt farmers in Indonesia become primary impetuses of the resistance of various parties to the dark side of regulatory economics imposed by the government.Regulasi ekonomi oleh negara memang sangat diperlukan untuk memastikan bahwa pengejaran keuntungan tidak bertentangan dengan kesejahteraan sosial. Itulah alasan mengapa ekonomi regulasi menjadi sangat penting. Namun, konteks dalam makalah ini bertentangan dengan substansi ideal ekonomi pengatur di mana pemerintah secara proaktif memberikan insentif untuk tetap mempertahankan praktik bisnis monopolistik sambil mengambil peran dominan dalam mengimpor komoditas garam melalui penerbitan kebijakan publik yang lebih permisif dan akomodatif. untuk kepentingan itu. Makalah ini bertujuan untuk menggambarkan dinamika politik dalam perumusan dan implementasi kebijakan impor garam di Indonesia pasca-Soeharto yang terutama ditandai oleh praktik persaingan usaha tidak sehat. Sebagai penelitian kualitatif deskriptif, penelitian ini menggunakan wawancara mendalam, observasi, penelusuran dokumen, dan teknik analisis dokumen di mana sejumlah birokrat, pengusaha, dan petani garam digunakan sebagai informan untuk menambang data. Hasil penelitian ini menunjukkan bahwa intervensi pemerintah melalui Permendag No. 125/2015 tidak mengungkapkan orientasi murni "membebaskan perdagangan komoditas garam dari praktik bisnis monopolistik", tetapi untuk memuaskan kepentingan pribadi dan menyelamatkan kepentingan importir tertentu yang sedang bagian penting dari kolusi bisnisnya. Ketidaksempurnaan konten, penghapusan sengaja kewajiban substantif, fasilitasi perburuan rente dan praktik bisnis monopolistik, dan ketidakberpihakan tujuan regulasi dengan mata pencaharian petani garam di Indonesia menjadi dorongan utama dari resistensi berbagai pihak terhadap sisi gelap ekonomi regulasi. dipaksakan oleh pemerintah.

Regeln und Prinzipien zur Überprüfung von Regulierungen in der Waldwirtschaft

Rules and principles for reviewing forest regulations The federal forest legislation aims to ensure that the forest can fulfil protective and welfare functions for the benefit of the general public and commercial functions for the benefit of forest owners in a balanced way. From the perspective of regulatory economics, the question arises as to whether this goal can be achieved with existing regulation and how efficient regulation is in terms of the economic costs incurred. The article first introduces important foundations of economic and political economic regulation theory and discusses certain procedural rules and indicators that would need to be considered in an overall analysis of forest regulations. It then subjects regulation at the federal level to a rough review in line with these theoretical principles. This leads to the hypothesis that this regulation could be effective, but that it generates unnecessarily high economic costs. In order to remedy this regulatory failure, the author believes that the Confederation's forest regulation should be more strongly differentiated according to the type of forest. At the very least, forests with high timber industry potential should be partially deregulated. A comprehensive analysis would have to be carried out to examine the thesis of regulatory failure.

Supporting Entrepreneurship in High Cost Economies

This chapter sets out the findings of a comprehensive literature review that addressed three objectives: to review internationally recognised and accepted methodologies of entrepreneurial human and firm characteristics data collection and analysis; to formulate the contemporary view and latest research on entrepreneurial characteristics and how these characteristics contribute to a model of entrepreneurial firm behaviour; to examine developments in the literature that explain to what extent human characteristics influence and predict the performance of firms. The implications of this work are that firms with high potential in either innovation or market-based growth opportunities need to have the right environmental settings in terms of social, political, regulatory, economics, and technology for firms with a high success potential to realise this potential. The concept of stage progression and the relationship between the characteristics of the individual, the firm, and the opportunity provide the elements of a framework through which to consider government support programs and interventions.

Supporting Entrepreneurship in High Cost Economies

This chapter sets out the findings of a comprehensive literature review that addressed three objectives: to review internationally recognised and accepted methodologies of entrepreneurial human and firm characteristics data collection and analysis; to formulate the contemporary view and latest research on entrepreneurial characteristics and how these characteristics contribute to a model of entrepreneurial firm behaviour; to examine developments in the literature that explain to what extent human characteristics influence and predict the performance of firms. The implications of this work are that firms with high potential in either innovation or market-based growth opportunities need to have the right environmental settings in terms of social, political, regulatory, economics, and technology for firms with a high success potential to realise this potential. The concept of stage progression and the relationship between the characteristics of the individual, the firm, and the opportunity provide the elements of a framework through which to consider government support programs and interventions.