Shifts in the control of natural resources: An analysis of the resource curse in Tin-Rich Bangka Belitung, Indonesia

Abstract

The resource curse refers to the paradoxical impact of natural resource abundance on a nation's economic development and political stability. Nations with significant natural resource reserves have become reliant on natural resource exports, which in some cases have led to economic downturns and political instability. Indonesia, with its abundant natural resources, is similarly susceptible to this phenomenon. A comprehensive literature review reveals that the resource curse in Indonesia excerpts a significant impact on the regional level, extending beyond the national boundaries. This dynamic aligns with the decentralization of resource governance following the post-reform regional autonomy policy. Subsequently, the state resorted to a recentralization strategy. In practice, this back-and-forth transfer of control has resulted in governance challenges and led to the proliferation of rentier state practices, whereby the state and local elites assert dominant control over resource management, as evidenced by the case of tin mining in Bangka Belitung.