Volume 3 | Issue 3 | 1 J Eco Res & Rev, 2023 Political Economy Perspective on Social Development: Case Study of Rent- Seeking on Rice Import Policy and Coal Mining Policy in Indonesia Research Article Wahyu Riawanti* and Bambang Arwanto * Corresponding Author Submitted: 2023, June 12; Accepted: 2023, July 15; Published: 2023, July 30 Citation: Riawanti, W., Arwanto, B. (2023). Political Economy Perspective on Social Development: Case Study of Rent-Seeking on Rice Import Policy and Coal Mining Policy in Indonesia. J Eco Res & Rev, 3(3), 01-12. Abstract The research is aimed to reveal the prominent issue of rent-seeking on Indonesian Public Policy. The study emphasizes in intersets on food and mining sector. The political interset of policy is described by patterns of the rent-seeking activity through diferent regulation in bothe sectors. Answered the hypotheses as followed: (1) government elites are the main actors and they are mostly the policy makers from food institution, (2) the actors came from diferent political party and bring about the diferent agenda to be supported with regulation, and (3) food institution determined the rent-seeking activity through the same actors that dominate import. The important evidence of this point was the “three pairs of name” that afliated with political party, importers and also infuenced the regulation. Meanwhile result on rent-seeking practices in coal mining policies notify four diferent sectors and institutions, namely: (1) Mining and energy sector policies in order to enforcing tenders in coal mining permits that causing rent seeking practices in the process of issuing coal mining permits. (2) Forestry sector policy, where the measurement of boundaries for forestry areas are still easily manipulated for the beneft of rent seeking (3) Industry and trade sector policy that using surveyor reports and data manupulation. (4) Financial sector policy should carrying out the development of the digitization of the non-tax state income management system between related ministries and institution. Wahyu Riawanti, Education and Training Centre Yogyakarta, IN- DONESIA. Email Id: wahyu.riawanti@jogjaprov.go.id Journal of Economic Research & Reviews ISSN: 2771-7763 1 Education and Training Centre Yogyakarta, INDONESIA Email Id: wahyu.riawanti@jogjaprov.go.id 2 Kutai Kartanegara University, East Kalimantan, INDO- NESIA Email Id: bambangarwanto@unikarta.ac.id SAMPLE COPY UNPUBLISHED PAPER Keywords: Food Policy, coal Mining Policy, Rent-Seeking, Social Loss. 1. Introduction The dynamic of globalization has driven any nation to the changes of management in several sectors including agriculture and mining. Both of those sectors are considered urgent as pri- orities of Indonesian development strategy. This study aimed to unwrap the dynamic in policy making on both secrrs. The research was conducted to reveal whwther the policy has been formulated in order to benefting public and support public val- ue. Any policies should be operated in the name of public and for the beneft of national society especially the needy. Other- wise the mechanism of rent seeking in both policy will be the source of rent for the private business to achieved for the interest of the rents. Meanwhile the historical evidence explained that problems as basis discussion. In food policy the price of basic food in Indonesia was aimed to be moderately inexpensive. In this purpose, the government will do anything for the sake of cheap food at all cost. 2. Background The problem in the discussion of coal mining policy is that high of world coal prices with low mining costs due to neglect of environmental costs and inefciency of state revenue, ignoring environmental costs, is a source of confict between the central and regional governments, because state revenue for coal is the authority of the central government, while local government only get environmental damage. Inefeciency state revenues, as well as poor environmental management at a time when world coal prices are very high shows the existence of a mafa in coal licensing that takes advantage of policy loopholes and conficts between the central and regional governments. Mafa are indi- viduals and/or groups seeking coal rents by taking advantage of weaknesses in governance and closeness to those in power, resulting in non-optimal production, inefciency and a high-cost economy. This interest of government in fulflling the need was practiced since Order Lama era until the era. In New Order, food and mining were considered as a very political commodity so that the food institution was always the source of political par- ty interest. According to Simatupang as reconfrmed by Lassa, even the food policy in Indonesia was merely the practice of kleptocracy activity since Soeharto regime use Bulog as for the interest of individual and political purpose [1,2]. Meanwhile, the coal mining policy in Indonesia in 2009-2014. policy actors are motivated to withdraw the authority to decen- tralize licensing because of the interests of the business elite and the bureaucracy [1]. The magnitude of the economic value is one of the reasons for the struggle for rents which is very thick [1]. Through the complex roles and interests of elites, the struggle for rents is carried out by exploiting the dualism of mining per- mits and manipulation of regulations to gain access to favorable policies. As a result, policies actually become a tool for central and regional government actors to fght over these rents.