Nuswantoro, and Tommy Apriando, Yogyakarta
Many regions feel that the wealth of natural resources (SDA) can directly improve the welfare of the community. In fact, in many cases, people who are rich in natural resources end up in poor areas. Not to mention, the more natural resources such as minerals and coal, the worse the environmental damage and disasters.
This thought emerged in the public discussion and launch of the book Managing Curses, Considering the Future, held by Article 33 together with PolGov, Faculty of Social and Political Sciences, Gadjah Mada University, two weeks ago, in Yogyakarta.
Present at the discussion were Joko Tri Haryanto, Doctor from the Fiscal Policy Agency of the Ministry of Finance, Ermy Ardhyanti, from Article 33 Indonesia, as well as Cornelis Lay, from PolGov UGM.
The experience sharing session from the region featured Ispan Junaidi, Head of the West Lombok Tourism Service, Abdul Aziz Thursday, from the Village Tabloid, Musi Banyuasin, Joni Syamsudin, Southeast Sulawesi DPRD, and Dedek Hendry, journalist for Mongabay Indonesia, Bengkulu.
The phenomenon of the SDA curse (natural resource curse) occurs when a country endowed with wealth actually has poor social welfare.
Several studies have found a negative relationship between natural resource wealth and economic growth. Other research finds indications that developing countries export a lot of minerals, but the growth of gross domestic product (GDP) per capita is lower than other developing countries with minimal mineral resources.
In the case of Indonesia, the phenomenon of the curse of natural resources emerged in the era of regional autonomy. Especially when several regions that have large regional revenues from natural resources actually have poor development indicators. For example, Musi Banyuasin, rich in oil and gas and coal, with regional revenues of IDR 2.58 trillion, but poverty is higher than the national average. Bojonegoro has regional revenues of IDR 1.5 trillion, the Human Development Index is actually far below the national average.
Cornelis Lay conveyed the results of PolGov research in Banyuwangi, Belu, Manggarai and Bojonegoro regarding natural resource management.
"Accountability and transparency as a recipe for avoiding the curse of natural resources are not enough to ensure good mining governance," said Cony, his nickname.
It was also found that there was no community participation in granting permits and managing income from extractive industries, causing management to be controlled by local elites and national elites. Apart from that, local knowledge has not been accommodated by local governments in managing extractive industries. Regional governments, he said, need special expertise in managing conflicts from extraction activities.
Ermy Ardhyanti from Article33, said that the aim of the research was to test the natural resources curse hypothesis at both the national and district/city levels. From there it can be seen to what extent fiscal decentralization accompanied by decentralization of political administration has an impact on economic growth, welfare, PM and government performance.
Some important findings in the study are, First, natural resource revenues do not have a significant correlation with overall economic growth. Second, natural resource revenues also do not have a significant correlation in reducing overall poverty. In fact, for 20% the richest regions, the impact is increasing poverty.
Third, natural resource reserve funds do not have a significant correlation with overall HDI and for 20% the richest regions. Fourth, 40% richest regions, natural resource revenues are negatively correlated with regional tax ratios, according to the hypothesis tax laziness confirmed. Fifth, the phenomenon of the curse of natural resources occurs in regions in Indonesia.
“Nationally, Indonesia is seen as capable of getting out of the natural resources curse, compared to Nigeria, for example. But there are indications of a natural resource curse in several areas. The region is very rich, disproportionate to the welfare of the people. There is also environmental damage in natural resource rich areas.”
This elementary school in Tidere Islands is only a few meters from the PLTU. This school should be relocated because it is too close to the PLTU and is full of dust every day. Photo: M Rahmat Ulhaz
Regional experience
Meanwhile, in the experience of regions, such as West Lombok Regency, Ispan tells of illegal mining in Sekotong. Located in one sub-district, covering an area of 33,000 hectares or 52% of West Lombok.
“As soon as the mine opened, many outsiders came. There are a lot of forces, actors involved. "Illegal mining occurs, by mining actors who cannot be accounted for in various aspects, including the use of mercury."
The regional government, he said, had spent a lot of money to reduce the negative impacts of mining, both social, health and environmental and had failed.
“Behind it all there is an extraordinary conspiracy. Finally, we came to the conclusion that mining has many disadvantages."
As a result, West Lombok is looking at tourism. It is proven that the tourism sector is an industry that has given birth to many derivative industries, brings income to the region and opens up job opportunities.
"In West Lombok the GRDP (gross regional domestic income-ed) from tourism reached 24% or around IDR 120 billion," he said.
Apart from that, compared to mining, tourism is an industry that causes almost no problems. On the other hand, it has a good impact in other sectors, for example in the form of inheriting cultural heritage that has high cultural value.
Abdul Aziz Kamis, from Musi Banyuasin, admitted that even though this district is rich in oil and minerals, poverty is worrying.
“SDA has not been able to improve people's welfare. It gets worse if the region gets local leaders who play with mining. "Regional heads can be a curse in themselves," he said, saying that regional heads need to have a far-sighted vision in managing natural resources.
Joni Syamsudin highlighted the reality of minimal regional mining revenue sharing funds. He also mentioned the small number of local workers absorbed by the mining industry. Even to operate the machines you have to bring in foreign workers.
Dedek Hendry highlighted the absence of the state in mining issues in Bengkulu. He told the story of the destruction of nature and social institutions in Bengkulu due to coal mining, such as in Penanding Village, Central Bengkulu.
"The mine opened around 1980, the women started collecting coal waste in 1996. They picked up coal that rolled down the river."
According to him, the destructive power of coal mining starts from the forest, then enters rivers, estuaries, and continues to the coast.
“About 44 kilometers of rivers have been destroyed because of coal waste. The regional money has run out to pay for repairs to roads damaged by this business. "Extortion for trucks carrying coal in one month can be IDR 500 million."
He agrees with the mining curse theory. What's worse, the state is not present there. This condition can be seen from the fact that pollution is allowed, rules are violated, and extortion is rampant. “Unfortunately the civil society movement is weak. Universities, media, clerics are helpless.”
About books
Regarding the publication of the book, Santoso, Executive Director of Article33 Indonesia hopes that the publication of the book can contribute to improving the study of this problem, as well as for future research and advocacy.
This book published by IPB Press is a summary of three studies on the topic of the curse of natural resources in Indonesia, the division of natural resources affairs related to Law 23 of 2014, and the Earnmarking policy in Musi Banyuasin.
The book itself concludes that Indonesia nationally is not trapped in the phenomenon of the curse of natural resources, but the initial symptoms appear in the form of institutional failure, and the quality of APBD spending is unproductive and only for operational spending.
To anticipate, First, central and regional governments should not standardize utilization and optimization schemes for budgeting policies in natural resource producing regions. Second, a special mechanism is needed to socialize the impacts of mining through the allocation of village funds (ADD) for those directly affected. Third, villages must design the use of ADD for the long-term development sector as early as possible while sufficient fiscal space is available.
This lake from former coal mine excavations was left gaping, without prohibition notice boards, without reclamation and near residential areas. In fact, now it is used by residents for various purposes, such as a source of clean water, fishing grounds and fishing. Photo: Tommy Apriando
Anti-Mining Day in Jogja
Meanwhile, every May 29, civil society organizations commemorate Anti-Mining Day (Hatam). Commemorating Hatam 2017, Walhi together with the Mining Advocacy Network (Jatam) held a coal and karst photography exhibition at the Walhi Secretariat and Uwong Coffee.
Through a photo exhibition with the theme "The State's Rampant Mining Contributes to Destroying People's Living Spaces" from 29 May to 5 June 2017, they want to convey a message to the public, that there is beauty and richness of water in karst and the negative impacts of coal mining both upstream and downstream.
Halik Sandera, Director of Walhi Yogyakarta, said that the issue of coal and karst in Yogyakarta was chosen because this region uses coal and karst, both for electrical energy and cement building materials.
"A total of 50% of Java electricity from PLTU is the raw material for coal, karst, the raw material for making cement. "Cement is needed in urban areas where development is rife like Yogyakarta," said Halik Sandera, Director of Walhi Yogyakarta, at the end of May.
For this reason, the public must have awareness regarding coal and karst issues. "Don't let the people of Yogyakarta only use energy and development without looking at the situation and conditions that occur in coal and cement producing areas," he said to Mongabay.
In Jogja itself, he said, there are several types of mining that are still active, such as Pesisir Selatan Kulonprogo, iron sand mining which is putting sand farmers' land at risk. Likewise, on the Merapi Slopes, illegal sand mining is still rampant on land and river channels which damages the special hydrological system in the Sleman-Yogyakarta Ground Water Basin (CAT).
Not only that, according to Halik, mining practices and downstream industries continue to exist and are becoming more massive because of the ease of licensing. In the Gunungkidul karst, limestone mining still threatens the sustainability of the area.
"The big threat in the future due to massive mining is the food and water crisis. "Mining will threaten coastal and river ecosystems because it disrupts natural sediment supplies," said Halik.
For this reason, he said, Jogja must have a moratorium on large-scale development. Supervision and law enforcement are still weak and there are still many illegal mining practices in Jogja.
“A policy is needed to regulate restrictions on the use of natural resources through mining. "We must start preparing a permanent moratorium policy for areas with a high level of vulnerability, both from disaster and environmental aspects."
The Jogja Regional Government, he said, must prepare alternative economic sources for communities that still depend on mining.
Merah Johansyah, National Jatam Coordinator said that mining has damaged the environment in various regions in Indonesia.
Karst and coal are highlighted in this exhibition because they are both targets of large-scale exploitation by the mining industry.
Coal in various areas causes damage upstream and downstream. He gave an example, in East Kalimantan, 71% Samarinda was surrounded by 63 mining permits.
The city forest allocation, which is only 0.9%, is almost completely eroded by coal mining. Not to mention that water catchment areas, food plots and water sources have been polluted and disappeared.
As a result, from 2008 to 2017, flooding continued to occur at 35 flood points in Samarinda, residents' homes and businesses were submerged. In fact, 232 former coal mine holes are still gaping, causing dozens of children to die.
https://www.mongabay.co.id/2017/06/03/mengelak-dari-kutukan-tambang/
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