Corruption in Indonesia’s Natural Resources Sector: The Case of Illegal Mining Permits

Abstract

Indonesia’s abundant natural resources have been a source of economic growth but also a hotspot for corruption, particularly in the issuance of mining permits. This paper investigates corruption related to illegal mining permits, analyzing how regulatory loopholes, weak enforcement, and collusive networks facilitate unauthorized exploitation of resources. Utilizing fieldwork, government data, and interviews with regulators, industry actors, and affected communities, the study reveals the environmental, economic, and social consequences of corruption in the sector. It also highlights the challenges faced by anti-corruption agencies in addressing entrenched interests and balancing economic development with sustainability. The paper contributes to global discussions on resource governance by offering empirical insights into corruption dynamics in extractive industries and recommending integrated policy approaches to enhance transparency and enforcement in Indonesia and similar contexts.