Political Economy in the Management of Natural Resources in Indonesia

Abstract

This study explores the political–economic relationship in Indonesia’s natural resource management, focusing on three major legal frameworks: Law No. 4/2009 on Mineral and Coal Mining, Law No. 41/1999 on Forestry, and Law No. 32/2009 on Environmental Protection and Management. Using a descriptive qualitative method, this research investigates the complex interaction between political power, economic interests, and environmental governance through an online literature review of the last five years. The findings reveal that, although these laws establish a relatively strong regulatory foundation, their implementation remains constrained by overlapping regulations, weak law enforcement, and institutional fragmentation at both central and local levels. Moreover, the study highlights persistent issues of rent-seeking behavior, limited community participation, and the dominance of short-term economic agendas over ecological justice. It emphasizes the urgency of harmonizing policies, strengthening institutional coordination, and reinforcing transparency to achieve sustainable governance. Ultimately, effective natural resource management in Indonesia depends on a political commitment that prioritizes environmental integrity, social justice, and long-term national welfare over short-term profit motives.