Impact of Mining Activities on Access to Clean Water and Community Health

Apart from increasing state revenue, mining activities also have a direct and indirect impact on the surrounding community. The direct impact of mining activities is related to the cutting down of vegetation and environmental degradation in the area. One of the impacts is that the quality and quantity of water is reduced due to soil sedimentation and mining waste. The indirect impact is related to health impacts in the form of health costs per household due to living in mining areas. The data used in this research is BPS data contained in the 2004 and 2015 Susenas data and riskesdas data. The method used in this research is the Difference-in-Difference or Double Difference method as well as a descriptive analysis method to see how mining activities influence water quality and health costs for the surrounding community.

Based on the results of the analysis of mining activities, health costs have a monetary value of implicit costs of around 0.024% of Indonesia's GDP. Households in mining areas also have to spend more time collecting drinking/clean water, around 5-30 minutes, tend to have lower drinking water consumption, and the reduction in quality tends to only be in color, not more smelly/foamy. From this research, it could be an input to add to the mining royalty policy because the impact of mining activities is also significant.