GREEN GROWTH VERSUS RESOURCE-BASED GROWTH: DEVELOPMENT TRADE-OFFS IN EAST KALIMANTAN UNDER INDONESIA'S LOW-CARBON TRANSITION

Rustam Rustam; Mastur  Jafri; Meilani  Aulia

doi:10.62207/weyjmn33

Authors

Rustam Rustam Muhammadiyah University of Berau, East Kalimantan, Indonesia Author
Mastur Jafri Muhammadiyah University of Berau, East Kalimantan, Indonesia Author
Meilani Aulia Muhammadiyah University of Berau, East Kalimantan, Indonesia Author

DOI:

https://doi.org/10.62207/weyjmn33

Keywords:

green growth, resource-based development, low-carbon transition, East Kalimantan, coal mining, sustainable development

Abstract

East Kalimantan faces a critical development paradox as Indonesia pursues low-carbon transition goals while maintaining economic dependence on resource extraction. This study examines the tension between green growth imperatives and resource-based development strategies in East Kalimantan, Indonesia's coal mining and palm oil production hub. Employing qualitative methodology through document analysis, policy review, and secondary data synthesis, this research investigates how provincial development trajectories navigate competing priorities of environmental sustainability and economic growth. Findings reveal fundamental trade-offs manifesting in policy inconsistencies, investment patterns favoring extractive industries despite renewable energy commitments, and socioeconomic vulnerabilities for resource-dependent communities. Empirical evidence demonstrates that coal production reached 695 million tons in 2023, contradicting national carbon neutrality targets for 2060. The study contributes theoretical insights into resource curse dynamics within transition economies and practical implications for development policy in resource-rich regions undergoing decarbonization pressures.

References

Arsel, M., Hogenboom, B., & Pellegrini, L. (2016). The extractive imperative and the boom in environmental conflicts at the end of the progressive cycle in Latin America. Extractive Industries and Society, 3(4), 877–879. https://doi.org/10.1016/j.exis.2016.10.013

Auty, R. M. (1993). Sustaining development in mineral economies: The resource curse thesis. Routledge.

Bowen, G. A. (2009). Document analysis as a qualitative research method. Qualitative Research Journal, 9(2), 27–40. https://doi.org/10.3316/QRJ0902027

Bridge, G., Bouzarovski, S., Bradshaw, M., & Eyre, N. (2013). Geographies of energy transition: Space, place and the low-carbon economy. Energy Policy, 53, 331–340. https://doi.org/10.1016/j.enpol.2012.10.066

Busch, J., Ferretti-Gallon, K., Engelmann, J., Wright, M., Austin, K. G., Stolle, F., ... & Potapov, P. (2015). Reductions in emissions from deforestation in Indonesia's moratorium on new oil palm, timber, and logging concessions. Proceedings of the National Academy of Sciences, 112(5), 1328–1333. https://doi.org/10.1073/pnas.1412514112

Butt, S. (2014). Regional autonomy and legal disorder: The proliferation of local laws in Indonesia. Sydney Law Review, 32(2), 177-191.

Cherif, R., & Hasanov, F. (2019). The return of the policy that shall not be named: Principles of industrial policy. IMF Working Papers, 2019(074). https://doi.org/10.5089/9781498317849.001

East Kalimantan Provincial Government. (2023). Provincial energy plan 2023-2027. Provincial Energy and Mineral Resources Agency.

East Kalimantan Provincial Government. (2024). Provincial budget realization report 2023. Provincial Financial Management Agency.

Flick, U. (2018). An introduction to qualitative research (6th ed.). SAGE Publications.

Global Energy Monitor. (2023). Global coal plant tracker. Retrieved from https://globalenergymonitor.org

Global Forest Watch. (2024). East Kalimantan deforestation rates. World Resources Institute. Retrieved from https://www.globalforestwatch.org

Gunningham, N. (2009). Environment law, regulation, and governance: Shifting architectures. Journal of Environmental Law, 21(2), 179–212. https://doi.org/10.1093/jel/eqp011

Healy, N., & Barry, J. (2017). Politicizing energy justice and energy system transitions: Fossil fuel divestment and a "just transition". Energy Policy, 108, 451–459. https://doi.org/10.1016/j.enpol.2017.06.014

Heffron, R. J., & McCauley, D. (2018). What is the 'just transition'? Geoforum, 88, 74–77. https://doi.org/10.1016/j.geoforum.2017.11.016

Hickel, J., & Kallis, G. (2020). Is green growth possible? New Political Economy, 25(4), 469–486. https://doi.org/10.1080/13563467.2019.1598964

IEA. (2023). Coal 2023: Analysis and forecast to 2026. International Energy Agency.

Imron, M. A., Santika, T., Lim, H. F., Ario, A., Maryanto, I., Achmad, A., ... & Wilson, K. A. (2021). Combining species-area models and ecological characteristics to identify priority areas for mammal conservation in Kalimantan. Journal of Mammalogy, 102(3), 681–692. https://doi.org/10.1093/jmammal/gyab033

Kusumadewi, R., Yusuf, M., & Purwanto, H. S. (2022). Heavy metal contamination in water and sediment of the coal mining area in East Kalimantan. Journal of Ecological Engineering, 23(4), 224–233. https://doi.org/10.12911/22998993/146273

Marquardt, J. (2020). Conceptualizing power in multi-level climate governance. Journal of Cleaner Production, 154, 167–175. https://doi.org/10.1016/j.jclepro.2017.03.176

McCarthy, J. F., & Robinson, K. (2016). Land, economic development, social justice, and environmental management in Indonesia: The search for the people's sovereignty. In Land and Development in Indonesia: Searching for the People's Sovereignty (pp. 1–28). ISEAS-Yusof Ishak Institute.

Ministry of Environment and Forestry. (2024). State of Indonesia's forests 2024. Republic of Indonesia.

Muradian, R., Walter, M., & Martinez-Alier, J. (2012). Hegemonic transitions and global shifts in social metabolism: Implications for resource-rich countries. Global Environmental Change, 22(3), 559–567. https://doi.org/10.1016/j.gloenvcha.2012.03.004

Nusantara Capital Authority. (2023). Nusantara environmental impact assessment. Republic of Indonesia.

OECD. (2011). Towards green growth. Organisation for Economic Co-operation and Development.

Overland, I., & Sovacool, B. K. (2020). The misallocation of climate research funding. Energy Research & Social Science, 62, 101349. https://doi.org/10.1016/j.erss.2019.101349

Parrique, T., Barth, J., Briens, F., Kerschner, C., Kraus-Polk, A., Kuokkanen, A., & Spangenberg, J. H. (2019). Decoupling debunked: Evidence and arguments against green growth. European Environmental Bureau.

PLN. (2024). Electricity supply business plan 2024-2033. State Electricity Company of Indonesia.

Prior, L. (2003). Using documents in social research. SAGE Publications.

Rahmawati, S., Priyadi, A., & Sulistiyono, E. (2023). Water quality assessment in coal mining areas: A case study from East Kalimantan. Environmental Science and Pollution Research, 30(8), 21456–21469. https://doi.org/10.1007/s11356-022-24389-w

Ross, M. L. (1999). The political economy of the resource curse. World Politics, 51(2), 297–322. https://doi.org/10.1017/S0043887100008200

Sachs, J. D., & Warner, A. M. (2001). The curse of natural resources. European Economic Review, 45(4-6), 827–838. https://doi.org/10.1016/S0014-2921(01)00125-8

Sahide, M. A., Burns, S., Wibowo, A., Nurrochmat, D. R., & Giesen, L. (2016). Towards state hegemony over forest governance: The politics of administrative boundary changes in Central Kalimantan. Journal of Environmental Planning and Management, 59(4), 588–608. https://doi.org/10.1080/09640568.2015.1033844

Silverman, D. (2020). Interpreting qualitative data (6th ed.). SAGE Publications.

Sovacool, B. K. (2016). How long will it take? Conceptualizing the temporal dynamics of energy transitions. Energy Research & Social Science, 13, 202–215. https://doi.org/10.1016/j.erss.2015.12.020

Spehar, S. N., & Rayadin, Y. (2017). Habitat use of Bornean orangutans (Pongo pygmaeus morio) in an industrial forestry plantation in East Kalimantan. International Journal of Primatology, 38(2), 358–384. https://doi.org/10.1007/s10764-017-9959-8

Statistics Indonesia. (2024). East Kalimantan in figures 2024. Provincial Statistical Office.

UNEP. (2011). Towards a green economy: Pathways to sustainable development and poverty eradication. United Nations Environment Programme.

Van der Ploeg, F., & Poelhekke, S. (2017). The impact of natural resources: Survey of recent quantitative evidence. Journal of Development Studies, 53(2), 205-216. https://doi.org/10.1080/00220388.2016.1160070

Venables, A. J. (2016). Using natural resources for development: Why has it proven so difficult? Journal of Economic Perspectives, 30(1), 161–184. https://doi.org/10.1257/jep.30.1.161