The Threat of the Resource Curse Looms: Academics Warn of Corruption and Environmental Exploitation
The Indonesian government’s move to establish the Forest Area Order Task Force (Satgas PKH) through Presidential Regulation Number 5 of 2025 is seen as a strong signal of efforts to reform national natural resource management. This policy emerges amidst growing concerns regarding the threat of the ‘resource curse’, which continues to shadow Indonesia.
Professor Achmad Tjachja Nugrahendo, a senior lecturer at UIN Syarif Hidayatullah Jakarta, believes Indonesia possesses significant capital to become a developed nation through its abundant natural wealth. However, he warns that this potential could transform into a threat if not managed transparently and equitably. “Indonesia has a great opportunity to turn its natural wealth into a blessing for development. The key lies in clean, democratic governance that serves the people,” Achmad stated on Monday.
He noted that the government’s actions through the Task Force, alongside the Attorney General’s Office’s success in recovering approximately Rp10.2 trillion from forest area enforcement, represent tangible state presence in improving resource governance. The state has also successfully reclaimed around 5.8 million hectares of forest area previously used for palm oil plantations and mining.
Nevertheless, Achmad warned that the greatest threat is not the abundance of wealth, but weak oversight and the dominance of certain groups in controlling strategic national resources. He noted that many resource-rich nations fall into conflicts of interest, corruption, social inequality, and environmental destruction due to excessive exploitation.
He cited examples such as Nauru, which suffered severe environmental degradation due to uncontrolled phosphate mining, and Zambia, which faces serious issues from copper mine waste contaminating rivers and farmland. In the Indonesian context, regions such as East Kalimantan, Papua, West Papua, Riau, and Aceh are considered highly vulnerable due to high levels of extractive sector exploitation.
Data from Auriga Nusantara indicates that deforestation in 2025 reached approximately 433,751 hectares, a 66 per cent increase from the previous year. Furthermore, the Ministry of Environment and Forestry reports that around 31.8 million hectares of forest areas have undergone degradation, threatening communities with floods, landslides, and droughts.
Achmad emphasised that natural resource management must be sustainable and not merely oriented towards short-term economic profit. He pointed to Norway as a model of success, where transparent governance, long-term investment, and strict environmental policies have turned oil and gas wealth into public prosperity. He concluded that Indonesia must accelerate policy reforms and strengthen industrial downstreaming to ensure natural resources provide added value to the national economy rather than being exported solely as raw materials.