Corruption and Natural Resource Governance in Indonesia: Transparency Challenges in Coal Mining Licensing in East Kalimantan
DOI:
https://doi.org/10.65815/00ytry59Keywords:
Mining corruption, East Kalimantan, licensing, beneficial ownership, natural resourcesAbstract
East Kalimantan is one of Indonesia's major coal-producing regions, making mining licensing and natural resource governance particularly important areas for anti-corruption policy. The economic value of mining licenses creates incentives for rent-seeking, conflicts of interest, political intervention, and opaque decision-making. This article examines corruption risks in coal mining licensing in East Kalimantan. Using normative juridical and governance analysis, the study evaluates licensing procedures, transparency requirements, political connections, beneficial ownership, and oversight mechanisms. The article argues that formal licensing procedures may remain vulnerable when information concerning ownership, political interests, and environmental obligations is not publicly accessible. The study proposes a transparency-centered framework requiring comprehensive beneficial ownership disclosure, open licensing data, conflict-of-interest declarations, independent environmental assessments, and post-licensing monitoring. Particular attention is given to the relationship between local political actors and private mining interests. The article concludes that anti-corruption strategies in resource-rich regions should move beyond individual criminal enforcement and address structural opportunities for rent-seeking embedded in licensing systems. Strengthening transparency and public participation can improve accountability in East Kalimantan's mining governance.
References
Arundaya, Maheswari, Triyara Annisa Nur Syifa, Sheila Aurelia Arifin, and Suryaningsih Suryaningsih. 2025. “Inequitable Distribution of Benefits in Natural Resource Management in East Kalimantan: A Critical Review of the Implementation of Article 33 of the 1945 Constitution.” Shautuna: Jurnal Ilmiah Mahasiswa Perbandingan Mazhab 7 (1).
Budiono, P., and R. Rini. 2017. “Coal Mining and Regional Development in East Kalimantan.” Journal of Indonesian Regional Studies 5 (2): 121–138.
Dwyer, R. J., and J. Davies. 2023. “Patterns of Infringement, Risk, and Impact Driven by Coal Mining Permits in Indonesia.” Ambio 52: 1819–1835. https://doi.org/10.1007/s13280-023-01944-y.
Gillies, Alexandra. 2011. “Reputational Concerns and the Emergence of Oil Sector Transparency as an International Norm.” International Studies Quarterly 55 (1): 103–126.
Hall, Derek. 2013. “Primitive Accumulation, Accumulation by Dispossession and the Global Land Grab.” Third World Quarterly 34 (9): 1582–1604.
Indonesia. 1945. Constitution of the Republic of Indonesia of 1945.
Indonesia. 1999. Law No. 31 of 1999 concerning the Eradication of Criminal Acts of Corruption.
Indonesia. 2001. Law No. 20 of 2001 concerning Amendments to Law No. 31 of 1999 concerning the Eradication of Criminal Acts of Corruption.
Indonesia. 2008. Law No. 14 of 2008 concerning Public Information Disclosure.
Indonesia. 2009. Law No. 4 of 2009 concerning Mineral and Coal Mining.
Indonesia. 2014. Law No. 23 of 2014 concerning Regional Government.
Indonesia. 2014. Law No. 30 of 2014 concerning Government Administration.
Indonesia. 2018. Presidential Regulation No. 13 of 2018 concerning the Application of the Principle of Recognizing Beneficial Owners of Corporations.
Indonesia. 2020. Law No. 3 of 2020 concerning Amendments to Law No. 4 of 2009 concerning Mineral and Coal Mining.
Indonesia. 2021. Government Regulation No. 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities.
Kolstad, Ivar, and Arne Wiig. 2009. “Is Transparency the Key to Reducing Corruption in Resource-Rich Countries?” World Development 37 (3): 521–532.
Lindstedt, Catharina, and Daniel Naurin. 2010. “Transparency Is Not Enough: Making Transparency Effective in Reducing Corruption.” International Political Science Review 31 (3): 301–322.
Mehlum, Halvor, Karl Moene, and Ragnar Torvik. 2006. “Institutions and the Resource Curse.” Economic Journal 116 (508): 1–20.
Mimba, Ni Putu Sri Harta, Jan van Helden, and Tjerk Budding. 2007. “Public Sector Performance Measurement in Developing Countries: A Literature Review and Research Agenda.” Journal of Accounting and Organizational Change 3 (3): 192–208.
Nurkhalis, A., et al. 2023. “Environmental Management of Coal Mining Areas in Indonesia: The Complexity of Supervision.” Society & Natural Resources 36 (9): 1194–1213. https://doi.org/10.1080/08941920.2023.2180818.
Ostrom, Elinor. 1990. Governing the Commons: The Evolution of Institutions for Collective Action. Cambridge: Cambridge University Press.
Putri, Elsa Ardhilia, Ika Putri Rahayu, Lailatul Komaria, and Franky Butar Butar. 2023. “Penguatan Prinsip Transparansi dalam Sentralisasi Izin Usaha Pertambangan Minerba Guna Meminimalisir Korupsi.” Arena Hukum 16 (3): 455–478. https://doi.org/10.21776/ub.arenahukum.2023.01603.6.
Ribot, Jesse C. 2004. Waiting for Democracy: The Politics of Choice in Natural Resource Decentralization. Washington, DC: World Resources Institute.
Ross, Michael L. 2015. “What Have We Learned about the Resource Curse?” Annual Review of Political Science 18: 239–259.
Sembiring, E. M., et al. 2020. “Effects of Transfer of Right and Jurisdictional Boundary on Mining Reclamation Performance in East Kalimantan Forest Areas.” Jurnal Manajemen Hutan Tropika 26 (2): 183–196.
Sovacool, Benjamin K., and Michael H. Dworkin. 2015. “Energy Justice: Conceptual Insights and Practical Applications.” Applied Energy 142: 435–444.
Sovacool, Benjamin K., M. C. Brisbois, and A. M. G. Nordin. 2016. “The Political Economy of Energy Security: Coal, Governance, and Institutional Accountability.” Energy Research & Social Science 22: 94–105.
Toumbourou, Tessa, et al. 2023. “Coal Mining, Environmental Governance, and Political Networks in East Kalimantan.” The Extractive Industries and Society 13: 101245.
Toumbourou, Tessa, Kathryn F. A. D. A. M. Padmanabha, and colleagues. 2020. “Political Ecology of Coal Mining in East Kalimantan.” Journal of Contemporary Asia 50 (4): 588–610.
Venugopal, Varsha. 2014. “Assessing Mineral Licensing in a Decentralized Context: The Case of Indonesia.” Natural Resource Governance Institute Working Paper.
Williams, Andrew. 2011. “Shining a Light on the Resource Curse: An Empirical Analysis of the Relationship between Natural Resources, Transparency, and Economic Growth.” World Development 39 (4): 490–505.
Williams, Andrew. 2015. “A Global Index of Information Transparency and Accountability.” Journal of Comparative Economics 43 (3): 804–824.
Wright, Gabriel, and James M. Roberts. 2016. “Mining Governance and the Challenge of Corporate Transparency.” Resources Policy 48: 104–112.
Yin, Robert K. 2018. Case Study Research and Applications: Design and Methods. 6th ed. Thousand Oaks, CA: Sage.
Zinnbauer, Dieter. 2012. “What Can Social Accountability Really Achieve?” Transparency International Policy and Research Working Paper 12: 1–18.
Downloads
Published
Issue
Section
License

This work is licensed under a Creative Commons Attribution 4.0 International License.
All writings published in this journal are the personal views of the authors and do not represent the views of this journal or the authors’ affiliated institutions. Authors retain copyrights without any restriction under the license of Creative Commons Attribution 4.0 International (CC BY 4.0).








