The ban on exporting Lobster Seeds has resulted in rampant smuggling cases in Indonesia. This study aims to analyze the implementation of the current regulation on the smuggling of Lobster Seeds against Case No. 8/Pid.Sus-Prk/2021/PN.Jkt.Utr, as well as to propose an economic analysis of law in formulating criminal law policies, particularly related to Lobster Seed smuggling sanctions. This research uses a normative research method with a statute approach and a case approach. The result of this study is an imbalance between the sanctions imposed on the smugglers and the profits obtained by the smugglers, and the potential state financial losses caused by the smuggling of Lobster Seeds. Therefore, it is necessary to use economic analysis of law in taking action against smugglers so that in addition to preventing the crime of smuggling, it also benefits the country's economy.

Keywords: Smuggling, Criminal Formulation Policy, Economic Analysis of Law