The socio-economic impacts of past mining were studied at Singkep Island,
Indonesia. Tin mining was the only major industry on the island from 1812-1992. It
contributed around 65% -90% of the local economy, provided 2452 out of 8716 direct
jobs, operated 2 out of 39 primary schools, built infrastructure and controlled the
hospital, ...
The socio-economic impacts of past mining were studied at Singkep Island,
Indonesia. Tin mining was the only major industry on the island from 1812-1992. It
contributed around 65% -90% of the local economy, provided 2452 out of 8716 direct
jobs, operated 2 out of 39 primary schools, built infrastructure and controlled the
hospital, airport, power plant and piped water. After closure, substantial mining
benefits turned very quickly into long-term losses. Job opportunities became
unemployment, economic contributions became economic collapse, and
infrastructure assets became liabilities. Environmental degradation was a negative
impact during and after mining. Education was relatively unaffected because most
children attended state schools. Poor resource governance during active mining led
the island to heavy economic dependence, little economic diversification, and failed to
transform the finite natural resources to human capital. These findings challenge the
claim that Indonesia has successfully released itself from the resource curse that
prevailed in the 1970s-1990s. Most previous research on Indonesia carried out analyses
at national scale, while the case of Singkep emphasises the importance of regional
studies.