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International Journal of
Law
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VOL. 8, ISSUE 4 (2022)
Economic analysis of law on domestic market obligation policy and its impact on the public interest
Authors
M Ali H M, A Fauzan
Abstract
Domestic market obligations (DMO) is a policy issued by the Ministry of Energy and Mineral Resources (ESDM) of Indonesia in order to charge coal mining entrepreneurs to supply their production to fulfill domestic market for Government needs by 25% of their total production. The main discussion of this research is the consequences of the public interest in terms of protecting the basic rights possessed by citizens such as electricity for the benefit of Indonesia in performing development in order to become a welfare state. And how to analyze the Domestic Market Bond policy in terms of the theory of economic analysis of the law. The research method used by the authors is included in the type of normative juridical research, namely an approach by examining legislation and legal theory in Indonesia, Source the data used includes primary and secondary, primary data is a source of data that is directly related to the object of research, namely the law the Decree of the Minister of Energy and Mineral Resources No. 139.K/HK.02/MEM.B/2021 about Domestic Market Obligation, secondary data is a source data describing primary legal materials which are the result of legal expert thought, namely books, scientific works, literature to electronic data sources. The data collection method in this study uses library research techniques. The data analysis used was descriptive qualitative. The results of this study are firstly, DMO policy which has similarities with the practice of monopsony (concentration of activities) is performed by Indonesia in for coal as the fuel to produce electrical energy. Then coal is a production material that concerns the livelihood of people. DMO policy has big consequences for State that is to mantain the stability of people's lives, and even increasing people economic activities and to build people's living standards at a level that is more prosperous than before. Secondly, Posner's analysis in the form of a positive economic analysis aspect, it is concluded that the DMO policy is an effort by the Government to optimize the costs, in this case coal as a raw material to produce electrical energy at affordable prices and can be enjoyed by Indonesia people, especially with the occurrence of energy scarcity due to rising prices of coal in global market.
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Pages:257-262
How to cite this article:
M Ali H M, A Fauzan "Economic analysis of law on domestic market obligation policy and its impact on the public interest". International Journal of Law, Vol 8, Issue 4, 2022, Pages 257-262
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