Illegal gold mining in Indonesia: structure and causes

Abstract

PurposeThis study aims to understand the process, structure and determinants of persistent illegal gold mining in Indonesia.Design/methodology/approachAn exploratory study included a literature review, field observations and in-depth interviews. Fieldwork was conducted at two mining locations in Kalimantan, Indonesia. Sixteen respondents representing key stakeholders: government, mining companies, mining associations and community, including illegal miners, were interviewed. The findings of the literature review were categorized as the push or pull factors within the topics, and field observations verified the literature review results regarding Indonesia. Interview data were analyzed using content analysis methods. A structural diagram of the actors and causal loop diagrams among the determinants of illegal gold mining was created and interpreted.FindingsA complex activity process and structure were revealed involving a range of actors. Politicians, government officials and law enforcement authorities added the complexity to the structure. Six main determinants of persistent illegal gold mining emerged: financial, low entry barrier, regulations and policies, supporting resources availability, politics and power and psychosocial factors.Practical implicationsThis study provides a deeper understanding for policymakers to consider when formulating policies on natural resources, and insights for mining companies to minimize conflicts with the community.Originality/valueThe study contributes to our knowledge of the complex structure and main determinants of illegal gold mining in Indonesia, which supports efforts to curtail this illegal activity.

A Chronicle of Indonesia’s Forest Management: A Long Step towards Environmental Sustainability and Community Welfare

“…17 of 2007, has underlined the implementation of law enforcement on forest crime. The condition of forest resources is alarming due to illegal logging, log smuggling, huge land and forest fires, high land demand, wider forest encroachment, and increased legal and illegal mining activities [173].…”

Indonesian Artisanal and Small-Scale Gold Mining—A Narrative Literature Review

“…From the aspect of law enforcement of illegal ASGM, this has become a serious dilemma, as it spans multidimensional factors such as social, economic, and legal aspects involving employment and poverty, as well as violations of law, so it is necessary to have policies that are able to accommodate such complex and wide-ranging problems [ 48 , 49 ]. Redi (2016) states that illegal mining law enforcement policy solutions should make policies based on cost and benefit analysis to ensure the achievement of the policy.…”

“…The formalization of ASGM is a demand that must be followed up immediately [ 9 , 49 ] by the relevant agencies. This change in system or regulation can bridge the needs of community mining with the government that has the authority to issue and supervise mining permits [ 9 , 49 , 109 ]. Such efforts, on the one hand, would allow miners to obtain permits through cooperatives or associations.…”

“…However, the processes of legalizing community mining must account for strict environmental considerations and be supervised by impartial and fair institutions [ 8 , 9 , 48 ]. Such processes must also take into consideration the perspectives of miners and local communities [ 44 , 49 ] in a balanced way.…”

The Relevance of Duration in Stakeholder Collaboration to Prevent Illegal Gold Mining in Nigeria

“…In recent years, the problems associated with artisanal gold mining have been identified worldwide, particularly in developing countries such as Nigeria, Ghana and Indonesia (Hasibuan, Tjakraatmadja and Sunitiyoso, 2020;Okafor, 2019;Owusu-Nimo et al, 2018). Artisanal gold mining is considered an illegal economic activity in Nigeria (Environmental Law Institute, 2014).…”