Socio-economic impacts and sustainability of mining, a case study of the historical tin mining in Singkep Island-Indonesia

Abstract

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.