NATURAL RESOURCES MANAGEMENT IN INDONESIA: THEORY AND IMPLEMENTATION
DOI:
https://doi.org/10.59465/ijfr.2026.13.2.339-360Keywords:
Politics, natural resources, corruption, resource curse, prosperityAbstract
Indonesia has abundant and valuable natural resources. Most are non-renewable, so their use should be managed sustainably. Resource use is not free from the political intervention, for example, during the national general elections, natural resources become important for financing the political activities of politicians competing in the elections. This paper reviews the political dimensions of natural resource management, particularly how natural resources function as political capital. Natural resource management (NRM) is shaped by collusion, corruption, and nepotism. As a result, natural resource wealth is not a blessing but a resource curse. Natural resource management faces a paradox, particularly in the forestry, mining, and plantation sectors. For example, in the mining sector, nickel products are exported illegally, and investors are predominantly from China. To adress this situtation, the government should reform its NRM laws and policies based on people prosperity approach. The three ministries (Ministry of Environment and Forestry, Ministry of Energy and Mineral Resources, and Ministry of Agriculture) related to NRM should develop best policies and regulations for the benefit and prosperity of all Indonesian people. Future research would focus on political engagement between the government official and business people, and the nepotism of appointed commissioners in state-owned companies in NRM business.
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