Mining in Southeast Sulawesi and Central Sulawesi: Shadow Economy and Environmental Damage Regional Autonomy Era in Indonesia

DOI

10.2991/assehr.k.200214.004How to use a DOI?

Keywords

mining, shadow economy, environmental damage, regional autonomy

Abstract

This article tells about the practice of shadow economy and environmental damage in mining activities in Southeast Sulawesi and Central Sulawesi. Natural assets contained in these two regions, especially the mine, attracted the attention of investors to invest their capital. The presence of mining companies has been going on for a long time. Before regional autonomy, state-owned mining companies, foreign-owned private companies and national entrepreneurs were the biggest holders of mining areas in Southeast Sulawesi and Central Sulawesi. In the of regional autonomy era, mining exploration is no longer monopolized by government companies (state) and large-scale foreign companies, but increasingly competitive after the importance of medium-scale private investors. Regional autonomy plays a role in opening the entry of mining investors from the private sector. Mining business licenses (IUPs) issued by local governments in Southeast Sulawesi and Central Sulawesi have experienced a boom, but have left a problem. The Ministry of Energy of Human Resources released mining activities in Indonesia in two states, namely clear and clean (CNC) and non Clear and Clean (non-CNC). In practice, in the field of mining companies with CNC status, they often carry out illegal practices in Indonesian mining regulations. Likewise, mining companies that are declared non-CNC still carry out production activities in secret (shadow economy). This practice has resulted in state losses, such as not registering taxes, loss of mining companies’ social responsibility to society and environmental damage.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Abdul Kadir
AU  - Eka Suaib
AU  - La Husen Zuada
PY  - 2020
DA  - 2020/02/18
TI  - Mining in Southeast Sulawesi and Central Sulawesi: Shadow Economy and Environmental Damage Regional Autonomy Era in Indonesia
BT  - Proceedings of the International Conference on Social Studies and Environmental Issues (ICOSSEI 2019)
PB  - Atlantis Press
SP  - 20
EP  - 27
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.200214.004
DO  - 10.2991/assehr.k.200214.004
ID  - Kadir2020
ER  -