The Natural Resource Curse: A Geographical Perspective
M. Taufik Rahmadi
1
, Darwin Parlaungan Lubis
2
, M. Ridha Syafii Damanik ,
Tria Maulia, Novida Yenni, Dwi Wahyuni Nurwihastuti, Sendi Permana and Sugiharto
Department of Geography Education, Faculty of Social Sciences, Universitas Negeri Medan, Indonesia
Keywords: Natural Resources, Resource Curse, Geography.
Abstract: The abundance of natural resources, especially oil and gas, in Indonesia raises concerns about its potential
impact on economic growth. The study aims to explore the Natural Resource Curse (NRC) theory, often
referred to as the "curse of natural resources," in the context of Indonesia from a geographical perspective.
This qualitative study adopts a literature review approach, employing descriptive analysis to examine various
sources that provide theoretical insights into the NRC. The findings suggest that the theory holds true in
several regions of Indonesia, such as Aceh, East Kalimantan, and Papua, where abundant natural resources
have not always led to sustainable economic growth. The research highlights the relevance of the principles
of geography—distribution, integration, description, and horology—in understanding the spatial dynamics of
the resource curse.
1 INTRODUCTION
Indonesia is one of the richest countries in the world
due to its vast natural resource base, which includes
both renewable and non-renewable resources
(Farhani & Chandranegara, 2019). Natural resources
are materials or energy that come from the physical
environment and can be used to meet human needs
(Dharmawibawa, 2019). (Yuliana et al., 2021) In his
research, he said that natural resources are
environmental components that include biological
and non-biological resources that work together to
produce an ecosystem. Natural resources, especially
oil and gas, are an advantage for the region that owns
them and are one of the sources of income for the
region. Related to the wealth of natural resources,
Indonesia is one of the countries that has relatively
large natural resources, especially oil and gas. Oil and
gas have become one of the main sources of state
revenue. The existence of relatively large oil has
financed a lot of physical development, especially
during the new order era when Indonesia once
experienced a period of glory for oil and gas
(Rahmayanti et al., 2021). Natural resources can also
overcome major development challenges. Natural
1
https://orcid.org/0000-0001-8972-9815
2
https://orcid.org/0000-0002-8838-4859
resources and economic growth show a positive
correlation which means that more natural resources
can increase economic prosperity. But in fact,
countries with abundant natural resources show signs
of slowing economic growth compared to countries
with relatively low natural resources (Haryanto,
2018).
Indonesia's territory is rich in natural resources,
some of which have not been utilized optimally. In its
management system, the Indonesian state in general
is still lagging as a result of various policies that are
still centered on development on the island of Java
(Pravitasari et al., 2021) (Soebagyo et al., 2019). In
Indonesia, regional autonomy is currently being
implemented which gives the authority to regions to
manage and utilize existing natural resources to
accelerate development. As a result, no region is left
behind in development because the budget can be
obtained and used according to regional needs. This
situation is very different from the previous period,
when during the new order of President Soeharto,
natural resources were centrally managed and fully
controlled by the central government, and the
producing areas did not receive an equal distribution.
As a result, natural resource-producing areas only get
Rahmadi, M. T., Lubis, D. P., Damanik, M. R. S., Maulia, T., Yenni, N., Nurwihastuti, D. W., Permana, S. and Sugiharto,
The Natural Resource Curse: A Geographical Perspective.
DOI: 10.5220/0013417200004654
In Proceedings of the 4th International Conference on Humanities Education, Law, and Social Science (ICHELS 2024), pages 279-287
ISBN: 978-989-758-752-8
Copyright © 2025 by Paper published under CC license (CC BY-NC-ND 4.0)
279
a small part of the benefits obtained by the state from
the natural resources they have. Normative data
shows that Indonesia has a very large forest cover,
which is 95.6 million ha. Indonesia's forest area is the
eighth largest in the world. However, empirical data
shows that the forestry sector has not been optimized
for the potential economic value of its environmental
services as a carbon emission sink (Novalia, 2020).
Until the early 1980s, most of the world's
economists still strongly believed that the abundance
of natural resources (SDA) in a country could be a
source of economic growth and increase state
revenues to finance the development of other sectors.
A pessimistic view of natural resources began to
develop in the 1980s when a paradox occurred that
showed that the discovery of natural gas in the
Netherlands caused the manufacturing industry there
to decline. This phenomenon is known as Dutch
Disease. The term was later developed (Gelb, 1988)
which analyzed the economic influence of petroleum
rents. Based on Gelb's findings, research on the
Natural Resource Curse (NRC) or the "curse" of
natural resources began. The "resource curse" is an
economic phenomenon characterized by the fact that
countries with abandoned natural resources have
much more developed economies than countries with
few or no resources.
Countries rich in gold, coal, oil, and gas, among
others, do not reap the economic benefits of abundant
natural resources and struggle to build political
stability. Conflicts and civil wars broke out in African
countries such as the Central African Republic, South
Sudan, and the Democratic Republic of the Congo
due to the existence of natural resources such as gold,
oil, uranium, and diamonds. If a country's abundant
natural resources are not accompanied by the ability
of its human resources, the country will become poor
due to economic slowdown compared to countries
that are poor in natural resources but have good
resources (Mohd Zain et al., 2021). Poverty in
countries with natural resources is caused by high
dependence on commodity prices, currency exchange
rate instability, lack of innovation in the process of
extracting natural resources, and declining
competitiveness of other sectors due to excessive
dependence on natural resources (Badeeb, 2017).
Countries or regions with abundant natural
resources should experience greater economic growth
compared to countries or regions with limited natural
resources. However, several studies show that
countries with abundant natural resources, such as oil,
natural gas, and other mining products, appear to have
lower levels of economic development than countries
with fewer natural resources (Marques & Pires,
2019). If a country's abundant natural resources are
not accompanied by skilled human resources, the
country will become poor due to economic
slowdown, in contrast to a country that is poor in
natural resources but rich in human resources. In
addition, although the existence of natural resources
provides a high per capita income for the country, its
distribution is uneven, creating a significant gap
between rich and poor people. The phenomenon of
poverty that still occurs even though an area has a
wealth of natural resources is called by social
researchers the "curse of natural resources" (Boos &
Holm-Müller, 2013; Shobande & Enemona, 2021).
The curse of natural resources by definition
describes a situation where a country or region has
abundant natural resources, especially the mining
industry, but is not followed by developments in other
sectors, such as the social welfare of its people. This
is a paradoxical phenomenon because countries with
abundant natural resources have lower levels of social
welfare and economic growth than other countries.
Mismanagement of natural resource revenues, which
has other sectoral impacts such as poverty, is one of
the main causes of this paradox. Natural resources are
no longer considered as a gift but as an obstacle to the
creation of development and community welfare.
Developed countries are almost all poor in natural
resources. They tend to rely on the superiority of their
human resources to produce a creative economy,
supported by high-tech products, and based on the
service and trade sectors. This is by the concept of
low-carbon development that is echoed by the world
today. Low-carbon development, which is a world
trend today, is the basic framework for a green
economy.
According to Adam Smith's classical theory,
natural resources are one of the acceleration and
inhibition of the production system. This shows that
the growth of an economy is influenced by its natural
resources (Wahyudi & Palupi, 2023). The abundance
of natural resources can have negative impacts such
as environmental damage, poverty, conflict, and
others. In the paradox book of the abundance of
natural resources (Zuada, 2021) A study by Arrelano
in Peru, found that mining triggers local conflicts
involving local people and companies through social
movements. This also happens in Africa, where the
abundance of natural resources has negative
consequences with the emergence of corruption, poor
governance, and hindering the institutional quality of
democracy at the local level. Still happening in
Africa, Patey's study found that the existence of oil
mines has exacerbated the two-state conflict between
Sudan and South Sudan. This is also in line with the
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research conducted (Gnangnon, 2021) which found
that developing countries that have abundant natural
resources tend to experience economic slowdowns. In
the end, the country's natural resources are only a
curse and not a profit. A country's natural resources
can be considered a burden if its institutions need
better quality. The prevalence of poverty in
developing countries with abundant natural resources
shows that poverty is difficult to eradicate, and
although poverty alleviation programs have been
implemented, the results are far from hopeful.
Natural resource studies have also been conducted
in Indonesia and produced varied findings. (Rosser,
2007) Conducted an empirical study examining the
relationship between the oil and gas sector and
economic growth in Indonesia between 1970 and
1980. He found that Indonesia can anticipate the curse
of natural resources. In addition (Rahma et al., 2021)
stated that curses in Indonesia do exist in a province.
So far, the Petroleum and Gas Fund is one of the
schemes implemented by several countries to get out
of the phenomenon of the Natural Resource Curse.
The phenomenon of natural resource curse occurs
when countries that have abundant natural resource
wealth that should have fast growth, low poverty
rates, and high levels of welfare tend to have lower
economic growth, higher poverty rates, and low
welfare. For example, 30 sub-Saharan African
countries export mining minerals experiencing
relatively slow economic growth. Indonesia is one of
the developing countries that has huge natural
resource reserves. The increase in Indonesia's oil and
gas reserves throughout 2017 reached 55.33%, or
92.2% of the target of 60% (ESDM, 2018).
As an irony, most developing countries as
exporters of natural resources tend to have a low
quality of life. To add to the paradox, governments
rich in natural resources tend to perform worse in
political development than others. This phenomenon
is also known as the "paradox of plenty" and is cited
in many research literature as a curse of natural
resources. The measure of the degree of NRC
(natural resource curse) for Indonesia is important
when we want to ensure the answer to the question of
whether NRC occurs in Indonesia, especially in areas
with abundant natural resources. Indonesia is known
as a country with abundant natural resources,
especially the mining sub-sector which includes oil
and gas, various minerals, and coal. Indonesia is even
the number one producer in the world for gold and tin
and number three for nickel, copper, and coal.
The purpose of this study is to find out how the
theory of Natural Resource Curse better known as the
"curse of natural resources" in Indonesia is viewed
from the perspective of geography. As is known,
geography is a science that studies the distribution
and interaction of humans with their physical
environment. The science of geography involves
understanding various aspects of geography, such as
location, space, place, and the relationship between
humans and their environment. Geography also
includes the study of physical phenomena such as
climate, soil, and topography, as well as human
aspects such as culture, economy, politics, and
society (Kurniasi et al., 2022). In this case, geography
will reveal its views on how the truth is related to the
theory of the "curse of natural resources" in
Indonesia.
2 METHOD
This research is a qualitative mini-research with a
literature study approach. This research is a type of
library research. The analysis method used in this
study is descriptive analysis through various literature
studies in strengthening the analysis supported by
various sources that have theoretical depth from
experts on the study of natural resource curse theory.
A literature study is a series of activities related to the
method of collecting library data, reading and
recording, and processing research materials (Zed,
2014). Literature study is also a data collection
technique used in research by collecting data and
research sources through books, journals, magazines,
newspapers, and others.
3 RESULTS AND DISCUSSION
The meaning behind the "natural resource curse" is
that countries with abundant natural resources, such
as oil and gas, actually have worse conditions than
countries with fewer natural resources in terms of
economics and governance development (Gunduz &
Kustupeli, 2020). (Nabila, 2021) the results of her
research said that the curse of Natural Resources does
not apply in Indonesia, based on the findings of this
study which shows that natural resources have a
beneficial impact on exports in the country. This is
also in line with research conducted (Wahyudi &
Palupi, 2023) that there is no curse on natural
resources in Indonesia. This means that the natural
resources in Indonesia can improve the country's
economy.
In Kalimantan, especially East Kalimantan,
research (Zaini, 2018) revealed a phenomenon that
The Natural Resource Curse: A Geographical Perspective
281
occurs due to coal exploitation. The results show that
the greater the contribution of the coal mining sector
to the economy, the worse the income inequality of
the community. Although coal contributes
economically, its benefits are not distributed fairly to
all levels of society. Local governments have not been
able to optimize spending in strategic sectors such as
education, health, and infrastructure to reduce
economic disparities. Government spending, which is
supposed to be an instrument of equitable welfare
distribution, has not had a significant impact in
reducing income inequality in the region.
The same thing also happens in various regions of
Indonesia, many poor people in mining-rich areas, the
high gap between rich and poor, and the emergence
of conflicts in the areas around mining can be an
example that not all areas that have mineral wealth
and forests can prosper their communities. The latest
example is Papua, an area with a high gap and the
largest gold industry in the world. The poor
population in the two Papua provinces is the highest
in Indonesia, reaching 28.4% or 914.9 thousand
people (BPS, 2017).
In the Sumatra region, the results of the study
(Amalia & Emalia, 2022) show that in general, the
abundance of natural resources measured through
mining and oil and gas profit-sharing funds has a
positive but not significant effect on economic
growth. This means that the phenomenon of natural
resource curses does not directly occur in the
provinces on the island of Sumatra. However, an in-
depth analysis using the RRCI (Regional Resource
Curse Index) reveals a more complex pattern.
Provinces with more abundant mining natural
resources tend to face a higher risk of natural resource
curses. Like Jambi Province, with the highest RRCI
score of 1.26. Although there is no significant natural
resource curse, there are indications of potential risks
for provinces with abundant natural resources,
especially Jambi Province.
This research reveals the adverse impact of
natural resource exploitation in South Sulawesi which
is very detrimental to the community. Environmental
disasters have resulted in losses of up to Rp 8.03
trillion, with the worst incidents in Luwu and
Bantaeng districts which killed 38 people and
displaced more than 13,000 residents. Damage not
only to human lives but also to thousands of hectares
of agricultural land that is the source of livelihood for
the community. The findings of the study prove that
the wealth of natural resources does not always bring
prosperity, but can cause suffering. Sulawesi,
especially South Sulawesi, shows that the wealth of
natural resources does not always bring prosperity,
but can also cause suffering. This is because the
environmental disaster that occurred resulted in
losses of up to Rp 8.03 trillion, with the worst
incidents in Luwu and Bantaeng Regencies which
killed 38 people and displaced more than 13,000
residents. Damage not only to human lives but also to
thousands of hectares of agricultural land that is the
source of livelihood for the community (Matalatta et
al., 2021).
The results of some of the findings above indicate
that the curse of natural resources in Indonesia has
complex characteristics that cannot be generalized.
Factors such as governance, decentralization policies,
local economic structures, and socio-cultural
dynamics of the community have a key role in
determining whether the wealth of resources is a
blessing or a curse.
In this study, geography will take a role to provide
its perspective on how the science of the "natural
resource curse" in Indonesia. Based on the results of
the seminar of the Indonesian Geographers
Association in 1988 in Semarang, it was agreed that
geography is a science that studies the similarities and
differences of geosphere phenomena from a regional
or environmental perspective in a spatial context,
which in essence geography emphasizes more on a
unique way to study the earth with various auxiliary
sciences in the perspective of geography eye
(geography point of view) (Aksa, 2019). To study
and analyze the phenomena that occur, several
geographical principles are needed as the foundation,
namely the principle of distribution, the principle of
integration, the principle of description, and also the
principle of coprology. This is the strength of
geography that other sciences do not have.
3.1 Principle of Distribution
The country of Indonesia has a variety of natural
resources spread across various regions. The
distribution of natural resources makes a great
contribution to the country's economy. According to
Law of the Republic of Indonesia Number 32 of 2009,
natural resources are elements of the environment
consisting of biological resources and non-biological
resources that unitively form the unity of the
ecosystem. Natural resources can also be interpreted
as natural resources that are used for human welfare
in various forms and types. Based on the nature of
sustainability, natural resources can be divided into
two, namely renewable natural resources and non-
renewable natural resources. Renewable natural
resources are natural resources that will not be
exhausted if they are continuously used because they
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can still be tried to exist or be available. Renewable
natural resources have regenerative (restorative)
power. Examples of this type of natural resource are
solar, wind, water, forests, and biodiversity.
Renewable natural resources also include biotic
natural resources such as plants and animals.
Meanwhile, non-renewable natural resources are
natural resources that will be used up because they
cannot be made new. Examples: mineral materials,
coal, natural gas, and other natural resources.
Indonesia is the country with the second highest
biodiversity wealth in the world whose natural
resources are spread from the tip of Sumatra Island to
Papua. (Suryana & Antara, 2021).
One of the countries that has the largest maritime
area and archipelago in the world is Indonesia which
consists of 17,504 large and small islands with a
water area of 5.8 million km2 or about 63% equal to
three-quarters of the entire territory of Indonesia.
Indonesia has a coastline that is the second longest
coastline in the world after Canada (Abidin As,
2019). As an archipelagic country, Indonesia is rich
in natural resources. Even so, the blessing of natural
resources owned by Indonesia has not been able to
lead Indonesia to become a developed country.
Indonesia is one of the countries in the Asian region
with the category of lower-middle-income countries
in other words, Indonesia is a developing country.
The availability of natural resources in Indonesia,
especially oil and gas, is due to the Indonesian
territory located at the meeting point between the
Australian continent, the Pacific Ocean, and the
Southeast Asian tectonic plate. Almost all petroleum
discoveries in Indonesia occur thanks to tertiary
deposits (the third layer) or at the base of tertiary
volcanic rocks and lava. Around 75% of oil and gas
exploration and production is carried out in the
western part of Indonesia. The four petroleum-
producing regions are Sumatra, the Java Sea, East
Kalimantan, and the Natuna Islands. Meanwhile, the
four main natural gas-producing regions consist of
East Kalimantan, Arun in North Sumatra, South
Sumatra, and the Natuna Islands.
Broadly speaking, this distribution principle is
used to describe geosphere phenomena and facts and
their relationships. Its function is to study the
phenomena and geographical phenomena scattered
on the earth's surface to reveal the relationship
between phenomena as a whole. In answering the
phenomenon of the "curse of natural resources" in
Indonesia, the principle of distribution supported by
various theoretical studies says that each region in
Indonesia has a different diversity of natural
resources. (Rahma et al., 2021) Said that provinces
with richer mining natural resources tend to face a
higher resource curse phenomenon when compared
to provinces with fewer extractive resources.
Although several studies say that the NRC
phenomenon in Indonesia does not appear on a
national scale, the results of this study prove that the
phenomenon occurs at the regional (provincial) level.
However, this is inversely proportional to the results
of research (Fahriza & Hartono, 2018) which said that
provinces that have a dependence on oil and gas
commodities, reflected in the contribution of oil and
gas to GDP, experience relatively faster GDP growth
per capita without oil and gas compared to provinces
that do not have oil and gas. Based on the findings
above, it can be concluded that in the case of
Indonesia, there is no resource curse phenomenon
between oil and gas natural resources and other
sectors outside of oil and gas. This study proves that
oil and gas natural resources have become a boon for
the provinces that have them because they have
succeeded in encouraging sectors outside of oil and
gas to grow faster than other provinces.
Based on the results of the analysis of the
principle of distribution of natural resources in each
region in Indonesia, the phenomenon of the "natural
resource curse" can essentially occur in every region,
this depends on how the natural resources are
managed, whether the natural resources can be
optimized as the main sector in economic
development which of course is accompanied by
maximum management or not. Each geographical
principle, such as location, affordability, and diversity
of resources, plays a key role in determining the
management strategy and potential for regional
economic development. Thus, successfully
overcoming the "curse of natural resources" requires
an approach that takes into account the geographical
uniqueness and specific characteristics of each
region.
3.2 Principle of Interrelation
The principle of interrelation is a principle used to
study the interrelated relationship between one
phenomenon and another geographical phenomenon
in space. This interrelated relationship can occur
between physical phenomena and social phenomena.
In essence, this principle can be used to unravel the
relationship between symptoms in a space that affects
each other. The purpose of this principle also serves
to describe the relationship in the room between one
symptom and another. In the case of the phenomenon
of the "curse of natural resources", this principle helps
us understand that the abundance of natural resources
The Natural Resource Curse: A Geographical Perspective
283
does not automatically make a region prosperous.
Many things need to be considered so that natural
resources can bring benefits. Through the principle of
integration, it can be identified that the relationship
between natural resources and economic
development is multidimensional. The success of
resource management depends not only on the
quantity of resources, but also on the quality of
interaction between economic, social, and
environmental systems. This must also be
accompanied by an increase in HDI (Human
Development Index) to be able to collaborate in
optimizing available natural resources. This is in line
with the results of research (Amalia & Emalia, 2022)
that the Natural Resource Curse (NRC) phenomenon
did not occur at the provincial level on the island of
Sumatra in the 2014-2019 period. However,
provinces with richer mining natural resources tend to
face a higher risk of the Natural Resource Curse
phenomenon, this is due to the development
imbalance between natural resource management and
human resource development.
3.3 Principle of Description
This principle of description essentially provides a
more in-depth explanation of the specific
characteristics of geographical phenomena.
Geography adheres to this principle aimed at
describing geospherical phenomena that require
descriptions either through writing, tables, drawings,
or graphs. According to the Central Statistics Agency
(2021), Indonesia faces a paradoxical complexity in
the management of its natural resources. Despite
being rich in natural potential, the country recorded
22.77 million people, or 10.64% of its population
living in poverty. This inequality is evident in
resource-rich provinces. In East Kalimantan, for
example, the non-oil and gas mining sector dominates
the economy but does not have a significant impact
on people's welfare. BPS data from East Kalimantan
Province (2022) shows a worrying condition: 46.32%
of people do not work, while 23.38% work in the
agricultural sector and 30.30% in the livestock sector.
This phenomenon is caused by the export of raw coal
commodities that do not require much local labor.
In other provinces, for example, the Papua region
still has a high poverty rate. In terms of expenditure,
BPS Papua Province (2022) reported poverty rates of
27.62% (2017), 27.74% (2018), and 27.53% (2019).
The center of poverty in Papua is in the mountainous
areas that are difficult to access, namely Deyiai and
Intan Jaya Regencies. This is due to several factors
such as the low human resource development index,
the increasing unemployment rate because the
number of job seekers is not proportional to the
number of available jobs, the management of natural
resources that are not well utilized by the indigenous
Papuan people and the people there do not have a
central position in the fields of education, health,
economy, society, etc. and culture (Ginting et al.,
2020) (Hardinandar, 2019). Furthermore, the poverty
that occurs in Aceh can be seen from the data of the
Aceh Province BPS (2022), namely the number of
poor people in the province is 872,610 people or
16.89% of the total population of Aceh, and has
increased by around 31 thousand people compared to
the previous year, which was 841 thousand people
(16.43%). In this case, Aceh is the poorest province
on the island of Sumatra, even though Aceh Province
is the province with the highest APBD and additional
special autonomy funds of 88.43 trillion rupiah since
it was budgeted in 2008 to 2021. Aceh Province is
still included in the category of poor provinces
(Safwadi, 2020).
In terms of its usefulness, this principle is used to
further explain the observable symptoms on Earth.
The function of the descriptive principle is used to
provide further explanations of the observable
phenomena that occur on Earth. From the results of
the data presented earlier, the phenomenon of the
"natural resource curse" does occur in several regions
in Indonesia that have abundant natural resource
availability. This is not without reason, but several
factors result in why these areas have not been able to
make optimal use of available natural resources. This
is in line with research conducted by (Hajad et al.,
2023) that areas rich in natural resources do not
guarantee increased economic growth or poverty
reduction in the region. In addition, the abundance of
natural resources does not necessarily guarantee
economic growth or poverty reduction. The
phenomenon of the "curse of natural resources" in
Indonesia is more than just bad luck, but is the result
of poor management, lack of accountability, and lack
of efforts to transform resources into sustainable
economic added value. The principle of description in
geography allows us not only to record facts, but to
understand the complexity of the relationship
between natural resources, economic development,
and people's well-being. He revealed that
development requires more than just an inventory of
resources, but also a smart, inclusive, and sustainable
strategy.
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3.4 Principles of Chorology
This principle is the most comprehensive because it
is a combination of the three previous principles.
Each phenomenon or phenomenon of geography is
studied by combining the principles of distribution,
installation, and description. The principle of
coprology can show symptoms, phenomena, and facts
between regions. The function of this chorology
principle is to study the symptoms, facts, and
problems that exist in a place from the perspective of
their distribution, interrelationships, interactions, and
integration in a certain space. Referring to the theory
of the "curse of natural resources" in Indonesia, based
on the results of research (Ridena et al., 2021) says
that Indonesia has the potential to experience a curse
of natural resources. However, the curse of natural
resources does not completely occur in all regions of
Indonesia, because some areas that have a large fiscal
capacity from oil and gas, also have the best HDI
quality. However, it is still necessary to consider
immediately looking for alternative sources of
economic growth from the non-oil and gas sector.
(Haryanto, 2018).
Natural resources can be a blessing that can
contribute to improving people's welfare. However,
the abundance of natural resources can also be a curse
for the economic development of a region. The results
of the research conducted by (Isiksal, 2023), the
results show an inverted U-shaped relationship
between financial growth and natural resource rent.
This implies that natural resources were originally a
"blessing of resources" which later became the "curse
of natural resources". Based on the analysis using the
principle of coprology, it can be concluded that the
phenomenon of the "natural resource curse" is
complex and not uniform. Some regions have shown
success in managing natural resources, while others
still face challenges. The imbalance between
management and human development makes the
natural resource management system not optimal.
Therefore, a comprehensive and different approach is
needed according to the context of each region.
To avoid the dependence of the Indonesian state
on natural resources and reduce the risk of the "curse
of natural resources", several strategic steps can be
taken. According to (Romare & Dahllöf, 2017) the
development of renewable energy technologies
energy efficiency is a key strategy in reducing
economic dependence on depleted natural resources.
Technologies such as solar and wind power plants can
help resource-rich countries to diversify their
economies. Especially in Indonesia, the
implementation of renewable energy technology can
be a strategic solution to reduce the risk of natural
resource curses, with the potential to reduce
dependence on traditional extractive sectors.
Furthermore, research (Pratama Kusumah et al.,
2024) shows that digital technology innovations such
as blockchain and artificial intelligence (AI) can
increase transparency and efficiency in natural
resource management. This technology enables better
supply chain tracking, and resource extraction
optimization, and supports sustainable development
practices that can help Indonesia get out of the
potential natural resource curse through smarter and
more sustainable management.
Research on Natural Resource Curse Theory from
a geographical perspective requires further
development through a multidisciplinary approach.
Based on studies (Ross, 2000), the complexity of the
curse of natural resources cannot be solved through
just one single approach. Therefore, future research
needs to focus on several things such as the
transformative role of education and the potential for
renewable energy investment. Education can be an
important instrument in breaking the chain of natural
resource curses. According to research (Glyfason,
2001), countries that allocate higher investment in
education tend to have better economic resilience
than regions that rely solely on natural resource
extraction.
4 CONCLUSIONS
The economy of the future can no longer depend on
abundant natural resources, moreover, the fact that
countries with abundant natural resources are not the
richest countries or vice versa. The results of the
research carried out on how the NRC (Natural
Resource Curse) theory better known as the "natural
resource curse" in Indonesia through a geographical
perspective using principles in geography aims to
help in analyzing and understanding what is
happening. The results of the study show that from
the four principles of geography, namely the principle
of distribution, the principle of integration, the
principle of description, and the principle of
horology, it is known that the theory of the "curse of
natural resources" in Indonesia does occur in several
regions that have abundant availability of natural
resources, the study shows that such as Aceh
Province, East Kalimantan Province and also Papua.
This theory occurs not only without cause but several
factors affect it. For example, a resource management
system that is not optimal, a low Human
Development Index (HDI), and the availability of
The Natural Resource Curse: A Geographical Perspective
285
technology that is not qualified so that it does not
support the optimal management of natural resources
as the main sector in the economic development of a
region. However, if natural resource management is
carried out properly, it will certainly be able to make
a positive contribution to economic growth in the
region.
The study recommends the Indonesian
government address the "natural resource curse"
through an approach that integrates sustainable
management models, economic diversification based
on technological innovation, and the development of
its human resource capacity. Referring to the research
(Kirchherr et al., 2017), the suggested strategy
includes the adoption of the circular economy concept
that has been successfully implemented in
Scandinavian countries, in this case, it is carried out
by increasing added value through technology that
supports the existing natural resource management
system. In addition, collaboration between the
government, the private sector, and the community is
needed in implementing the strategy which includes
competency-based training and the creation of
incentives for innovation in the natural resources
sector. The main goal is to transform natural resource
management from just extractive to sustainable and
provide maximum benefits for economic
development and the welfare of the Indonesian
people.
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