MINING REGULATION AND IT’S IMPACT ON PUBLIC WELFARE

Abstract

This study aims to provide empirical evidence on the impact of mining company policies in Lampung Province on improving community welfare. The issue used in this study was the enactment of Law No. 23 of 2014 which transferred the authority to manage mineral and coal mining to the Province (previously managed by the Regency/City). This study separates two periods of observation, namely before and after the authority to administer affairs in the mineral and coal mining sector has shifted to the provincial government. Using secondary data derived from records of receipts sourced from mining companies in each region for five years of observation (2010-2014 for the before period). While the 2015-2018 data will be collected from the government of Lampung Province, because since 2015 the authority to administer affairs in the mineral and coal mining sector has shifted to the Provincial government (2015-2018 for the after period). This welfare is measured using local original income. The greater the annual average local original income from mining received by the Province compared to the average accumulated annual local original income from mining received in all districts / cities in Lampung, the welfare index in Lampung Province also increases. The results of the 2010-2018 analysis show an increase in local original income from mining companies after the enactment of Law No. 23 of 2014. This finding indicates that mining regulations issued by the government improve community welfare and confirm regulatory theory, especially the theory of public interest