Extractive Economics and the Environment: An Evaluation of the Role of Mineral Mines on Regional Deforestation
DOI:
https://doi.org/10.22437/proca.v2i3.59991Keywords:
Deforestation, Extractive Economy, Geo-Map Orange Data Mining, Mineral Mining, Panel Data AnalysisAbstract
Background: Mineral mining plays a major role in Indonesia’s economy, but it also places considerable pressure on forest ecosystems, creating a paradox between extractive economic growth and environmental sustainability. Objective: This study aims to analyze the impact of the mineral mining sector on deforestation in Indonesia. Methods: A quantitative approach was applied using panel data from 34 provinces over the period 2020–2024. Independent variables included the mining sector’s GDP, population, the Human Development Index (HDI), and dummy variables for the presence of metal and non-metal mines. Data were analyzed using a Random Effects Model, decision tree analysis, and geo-map visualization. Results: Mining GDP and HDI had a positive and significant influence on deforestation, while population and metal mines showed no significant effect. Non-metallic mineral mines had the strongest impact on increased deforestation, and provinces with high mining productivity spatially tended to experience wider forest destruction. Conclusions: These findings emphasize the importance of integrating extractive economic policies with environmental protection so that development does not come at the expense of ecological sustainability.References
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