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May 13, 20260 citationsOpen Access

The history of economic diversification in Jambi: the growth of the coal industry and sustainable plantation development in the modern era

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ABAhmad Fauzan BaihaqiOPOlga S. PratamaBRBerlian Raharjo

Key Points

  • The study aims to analyze Jambi's economic diversification, specifically the relationship between coal mining growth and sustainable agriculture.
  • Historical analysis using critical historical methods with synchronic and diachronic approaches.
  • Data collection from colonial and state archives, government reports, statistical series, and public policy actor interviews.
  • Assessment of the historical trajectory of plantations and extraction industries affecting land use and livelihoods.
  • Plantation agriculture has been the main economic driver since colonial times, with rubber being the largest area and palm oil leading production in 2020.
  • As of 2013, agriculture represented 25.63% of the economy vs mining's 26.16%; however, agriculture has been in the lead since 2014.
  • Economic diversification has increased employment but caused tensions between growth, energy security, and environmental sustainability.

Abstract

This study analyses, from a historical and social perspective, the economic diversification of the province of Jambi and the contemporary dynamics between the growth of coal mining and agricultural sustainability. The aim is to reconstruct the historical trajectory of the regional productive pillars—plantations and extraction—and assess their recent effects on land use, well-being and livelihoods. The critical historical method was applied with a synchronic and diachronic approach (topic selection, heuristics, source criticism, interpretation and historiography), using colonial and state archives, government reports and statistical series, as well as interviews with public policy actors. The results show that plantation agriculture has been the historical mainstay of Jambi since the colonial period and continues to be the main economic driver: rubber maintains the largest area, and palm oil leads production in 2020. Mining has consolidated its position as the second most important industry: oil exploration was institutionalized between 1895 and 1910, and coal mining has expanded significantly since the 1980s. In 2013, agriculture represented 25.63% vs mining 26.16%; since 2014, agriculture has been in the lead. Mining growth and agro-industrial expansion drove land use changes, conflicts over licences and land, dependence on logistics infrastructure and socio-ecological pressures. It is concluded that diversification has raised economic indicators and employment opportunities, but generates tensions between growth, energy security and environmental sustainability objectives; integrated management is required to protect agricultural land and food security, strengthen governance and environmental mitigation, and promote productive alternatives in the face of the global energy transition.

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Cite This Study

Baihaqi et al. (2026) studied this question.

synapsesocial.com/papers/6a0415aa79e20c90b4445734https://doi.org/10.5281/zenodo.20128559
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