Politics, Mining, and the People: Mining Policy Impacts on North Maluku Provinces Communities

The mining industry in North Maluku Province makes a substantial contribution to Indonesia’s economic growth, particularly through the enhancement of Gross Domestic Product (GDP) and the increase in nickel exports. Nevertheless, this expansion has given rise to a paradoxical situation in which communities residing in proximity to mining areas experience various forms of economic, social, and ecological marginalization. This study aims to evaluate the impact of mining policy on community well-being. The dynamics of mining policy in North Maluku were examined by employing a qualitative methodology and a case study approach. The data were gathered through interviews, observations, literature reviews, and document analysis. Subsequently, the collected data underwent a rigorous process of reduction, organization, and interpretation to facilitate the drawing of conclusions. The findings reveal that political elites play a significant role in the issuance of Mining Business Permits (IUP), often in alignment with prevailing political agendas. This alignment has contributed to conflicts of interest and weakened governance of natural resources. Furthermore, land tenure disputes, inadequate recognition of indigenous peoples’ rights, pollution of water and soil resources, and biodiversity loss further exacerbate adverse environmental and social conditions. Simultaneously, the distribution of economic benefits to local communities remains uneven and insufficiently addressed. In this context, the protection of the rights of communities surrounding mining activities, enhanced community participation, and increased transparency emerge as critical elements of an effective mining policy. The overarching objective of the study’s recommendations is to strengthen the policy framework to conform with the principles of sustainable development and social justice.