THE LEGAL POLICY ROLE OF GROUNDWATER TAX ON WATER RESOURCES CONSERVATION IN INDONESIA

Abstract

Purpose: This study discusses the role of legal politics in collecting groundwater taxes on water resource conservation and how earmarking taxes in groundwater taxes is an effort to conserve water resources.   Theoretical Framework: The theoretical framework for this research is anchored in the intersection of legal and political dimensions within the context of groundwater taxation for water resource conservation in Indonesia. The study recognizes that taxation, as a regulatory instrument, currently falls short in effectively curbing excessive and uncontrolled extraction and utilization of groundwater, primarily due to the comparatively low tax rate in relation to the PDAM clean water tariff.   Method: The study employed a normative juridical method with analytical descriptive specifications, utilizing library materials as primary data, categorized as readily available secondary data. Analytical descriptive research was employed to comprehensively analyze legal facts through a systematic examination of primary and secondary data.   Result and Conclusion: Environmental conservation matters are the scope of local government, which must be regulated in local government taxation politics through regulations for collecting groundwater taxes on water resource conservation. In earmarking, there is a relationship between taxpayers and the benefits obtained from these taxpayers. Earmarking groundwater tax on water resource conservation can overcome environmental damage and benefit taxpayers.   Originality/Value: This research investigates the legal dynamics of groundwater taxation in Indonesia, emphasizing the need for effective conservation measures. Utilizing a normative juridical approach, it explores the role of local government taxation policies and proposes earmarking groundwater taxes to bridge the gap between environmental preservation and taxpayer benefits, offering innovative solutions for sustainable water resource management.