POTENTIAL RESOURCE CURSE ANALYSIS ON REGIONAL SCALE AREA IN THE INDONESIA MINERAL MINING SECTOR USING VECTOR AUTOREGRESSION (VAR) METHOD : CASE STUDY WEST NUSA TENGGARA, SOUTH SULAWESI, AND PAPUA PROVINCE

• Main Author: PANY (NIM : 22117001), YUSEF
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/31850
• Institution: Institut Teknologi Bandung

mining sector. Mineral commodities with a significant amount of production are copper, gold, and nickel. The hypothesis is there is a Resource Curse phenomenon in Indonesia mineral mining. Resource Curse study about the negative relationship between natural resources with economic performance and social aspect in a country. <br /> <br /> <br /> This research investigates the potential of Resource curse in the three of Indonesia provinces by analyzing the dynamic relationship of mineral mining sector with economic aspects such as manufacturing, agriculture, and services sectors as the key of regional sustainable development, and also social aspect consists of education and healthy quality. The research location are Papua, Nusa Tenggara Barat, and South Sulawesi Provinces. Data from 1986 to 2016 were analyzed through the use of a Vector Autoregression (VAR) method consisting of Impulse Response Function (IRF) and Variance Decomposition (VD) analysis. <br /> <br /> <br /> The result shows there is a Resource Curse indication in the Papua, Nusa Tenggara, and South Sulawesi Province. The indications are increasing of inflation and decreasing of non-mining sector performance. The mining sector was found to respond positively to a shock in inflation and service RGDP but respond negatively to shock in manufacturing and agriculture RGDP. Besides that, the indications of Resource Curse in social aspect are decreasing of education and healthy quality in the three of provinces. We conclude that, although mineral mining sector has a significant role in the economic growth, it is necessary for the government to adopt a regulation that develops non-mineral mining sector for regional sustainable development.