Indonesia Gets The Natural Resources Curse?

The natural resource curse is paradox that countries and regions with an abundance ofnatural resources, tend to have less economic growth and worse development outcomes than countries with fewer natural resource. This curse ever happened in ducth caused crisis in the 1960s that resulted from discoveries of vast natural gas deposits in the North Sea,It making exports of all non-oil products less competitive on the world market. So,this curse is often called the dutch disease. Now, the Developing country with an abundance of natural resourcesbegin to face dutch disease including Indonesia. The Natural resources that Indonesia has, did not result anything for citizen. It based on Institute for Development of Economic and Finance (Indef) data, Indonesia has 100 million people below the poverty line. The bad management of natural resources is main reason why indonesia gets dutch disease.

Indonesia, known as archipelago has enourmous natural resources because Indonesia stay on the edges of three tectonic plates and equator line which bring out Indonesia has atropical climate. Tropical climate and indonesia size which consists of extensive land and sea,support Indonesia as second highest level of biodiversity.Various flora and fauna stay on the land of Indonesia.The tectonic plates are Pacific, Eurasian, and Australian tectonic plates.they make Indonesia has numerous volcanoes and frequent earthquakes.On other hand,the tectonic plates enrich Indonesia with an abundance of non-renewable resources,such as mining, petroleum,and metals.They are easier to find and better than the others countries have .Indonesia's natural resources make western country colonized Indonesia before

An abundance of natural resousces that Indonesia has do not give benefits for our citizen. There are several reasons why the government has failed to manage natural resources.First, The dilemma on natural resources management in Indonesia. The natural resources are managed sectorally and partially, so that sector interest will be dominant and become priority than national interest. It makes the utilitization of natural resources potentiality cannot be optimal because every sector tends to fight for their interest and authority.Second,there are international pressure on Indonesia government in resources policy.It based on the ministry of energy and minerals resources(ESDM) data, from the total oil and condensate production in Indonesia, Pertamina produces only 13.8%. The rest is held by foreign companies as Chevron (41%), Total E & P Indonesiea(10%), Chonoco Philips (3.6%) and CNOOC (4.6%).Third, Human Development Index (HDI) of indonesia is lower than country with low natural resources like Singapore and Malaysia.Indonesia ranks 124 of 187 countries based on survey of UNDP. The indonesia's human resources cannot manage an abundance of natural resources well.

The bad management in natural resources give negative impact for Indonesia.First,Natural resources, provoke conflicts within societies as different groups for their interest. Sometimes these emerge openly as separatist conflicts in regions where the resources are produced but often the conflicts occur in more hidden forms, such as fights between different government ministries. Second.most of people in developing country not be up to manage natural resources well because they think can live prosperous only with an abundance of natural resources without good govarnance.The last,the bad management in natural resources do not increase the level of prosperity but just leave the natural damage caused by mining and drilling activities .

Indonesia should immediately organize the management of natural resources so that natural resources which god given is not wasted. It is already needed for Indonesia to have a national policy for natural resources management that place national interest above sector interests. Ideally, the government should build a national agency that designs an umbrella policy as a guidance for all sectors in managing the utilization of related natural resources. It will be followed by synchronization and harmonization of all regulations among related sectors through which the optimalization of natural resources beneficiary can be reached.So, an abundance of natural resources can generate significant national income for financing national development and increase the level of prosperity